Advice report

Sneakers Fris

Jesse Fardin

400001
Advice report Sneakers Fris
Author: Jesse Fardin

Student number: 400001

Subject: Integrative Project 2

Lecturers: Mr. B. Jonker & Mr. B. Baalmans

Class: BK3V2B

Course: Three-year study Bedrijfskunde, Hanzehogeschool

Groningen

Date: June 3, 2023, Groningen

Table of Contents
1. Introduction...................................................................................................................4
1.1 Background and Significance.................................................................................................4
1.2 Problem Statement...............................................................................................................4
1.3 Main Question and sub questions.........................................................................................4
1.4 Scope and Limitations...........................................................................................................5
1.5 Structure of the Paper..........................................................................................................5
2. Theoretical framework...................................................................................................6
2.1 Overview of Management of Change Theories and Models...................................................6
2.1.1 BMC-analysis.....................................................................................................................................6
2.1.2 PESTEL-analysis................................................................................................................................6
2.1.3 SWOT-analysis...................................................................................................................................7
2.1.4 Interview.............................................................................................................................................7

3. Methodology.................................................................................................................9
3.1 Sub question 1......................................................................................................................9
3.2 Sub question 2......................................................................................................................9
3.3 Sub question 3......................................................................................................................9
4. Results.........................................................................................................................11
4.1 Sub question 1....................................................................................................................11
4.1.1 Consignment.....................................................................................................................................11
4.1.2 Cleaning services..............................................................................................................................12
4.2 Sub question 2....................................................................................................................13
4.2.1 Consignment.....................................................................................................................................13
4.2.2 Cleaning services..............................................................................................................................14
4.3 Sub question 3....................................................................................................................16
5. Conclusions and recommendations...............................................................................18
5.1 Summary of Findings..........................................................................................................18
5.2 Research Question Answered..............................................................................................18
5.4 Recommendations for Future Research...............................................................................20
6. Management of Change theory and implementation...................................................21
6.1 Kotter’s Eight step model....................................................................................................21
6.2 How does it change culture.................................................................................................23
Reverences.......................................................................................................................24
Appendices......................................................................................................................26
Appendix 1; Business Model Canvas.........................................................................................26
Appendix 2; PESTEL..................................................................................................................26
Appendix 3; SWOT-analysis.......................................................................................................27
Appendix 4; Kotter’s 8 step model............................................................................................27
1. Introduction
1.1 Background and Significance
The sneaker industry has witnessed significant growth in recent years, with a surge in demand
for limited edition and exclusive sneakers. Sneakers Fris, a company specializing in selling
these unique sneakers and providing shoe cleaning services, has positioned itself to serve this
market. However, the company is currently facing a shortage of shoes for consignment and
cleaning services, leading to a backlog of orders and dissatisfied customers.

Efficient operations management and supply chain management are crucial for Sneakers Fris
to address this issue effectively. By optimizing their processes, the company can increase the
number of shoes available for consignment and cleaning services, reducing turnaround time,
and improving customer satisfaction. This paper aims to analyze the company's current
operations and supply chain management practices to identify areas for improvement and
propose solutions to enhance their overall efficiency.

1.2 Problem Statement

Sneakers Fris is currently facing a shortage of shoes for consignment and cleaning services,
resulting in a negative impact on their revenue generation and customer satisfaction levels.
The company's inventory management system is ineffective, leading to inaccurate stock
management and outdated inventory information on their website. This problem hinders their
ability to provide timely services and meet customer demands. Therefore, there is a need to
address the company's operations and supply chain management processes to get rid of the
shoe shortage issue and enhance the operational efficiency.

1.3 Main Question and sub questions

The main question of this advice report goes as follows:

“What are the key factors contributing to the shortage of shoes at Sneakers Fris, and how
can the company optimize its OPM & SCM processes to increase the number of shoes
received for consignment and cleaning services?”

To follow up on the main question, are the sub questions of this report, which are the
following:

1. “What is the current process for receiving shoes for consignment and cleaning
services at Sneakers Fris, and where are the bottlenecks that limit the number of
shoes that can be processed?”
2. “What are the potential solutions to increase the number of shoes received for
consignment and cleaning services, and how can the company implement these
solutions while minimizing disruption to its operations?”
3. “How can Sneakers Fris improve its supply chain management processes, such as
inventory management, to better forecast and meet the demand for shoe consignment
and cleaning services?”

1.4 Scope and Limitations

The scope of this research paper is focused on analyzing the operations management and
supply chain management processes of Sneakers Fris, specifically related to the shortage of
shoes for consignment and cleaning services. The paper will primarily explore solutions
within the company's control, such as improving inventory management and implementing
advanced analytics techniques. However, external factors, such as market fluctuations and
supplier availability, may pose limitations to the proposed solutions.

1.5 Structure of the Paper

This paper is structured to address the shoe shortage issue and optimize operations and supply
chain management at Sneakers Fris. It begins with an introduction highlighting the problem.
The theory section explores relevant concepts and literature. The research method section
describes the methodology used. Results present findings on the causes of the shortage,
together with information from an interview with Marc who is the owner of Sneakers Fris,
desk research and the interpretation of the author. The conclusion provides recommendations.
Additionally, the paper includes sections on managing organizational change theory and
implementation.
2. Theoretical framework
This chapter introduces the theoretical aspects of change management. It covers management
of change theories and models, theoretical foundations and concepts, relevant literature, and
presents a conceptual framework for analyzing change management practices.

2.1 Overview of Management of Change Theories and Models

The Models that are used in this report are the Business Model Canvas, PESTEL, Kotter’s
Eight step model and the SWOT-analysis. These models provide structured approaches to
point out multiple aspects of an organization's operations and external environment. They
help identify areas for improvement, strategic opportunities, and potential challenges or risks.
By applying these theories and models, Sneakers Fris can make informed decisions, develop
effective strategies, and successfully manage organizational change.

2.1.1 BMC-analysis
The Business Model Canvas (BMC) is a strategic management tool that provides a visual
representation of the key elements of a business model. It consists of nine building blocks
that help analyze and describe the organization's value proposition, customer segments,
channels, customer relationships, key activities, key resources, key partners, cost structure,
and revenue streams. The BMC helps identify the critical components of a business and how
they interact with each other to create value.

Using the Business Model Canvas (Appendix 1), Sneakers Fris her business model can be
analyzed and described. The company specializes in selling unique and limited-edition
sneakers, providing shoe cleaning services, and offering an online platform for customers to
browse and purchase products. The key elements of Sneakers Fris' business model include its
value proposition of offering exclusive sneakers and shoe cleaning services, customer
segments consisting of sneaker enthusiasts, channels such as its online platform, and
customer relationships built on a strong brand reputation. Key activities involve procuring
and curating sneakers, providing shoe cleaning services, and managing inventory. Key
resources include its inventory of unique sneakers, cleaning equipment, and skilled staff. Key
partners may include suppliers and logistics providers. The cost structure includes expenses
related to inventory management, cleaning services, staff, and online operations. Revenue
streams come from the sale of sneakers and shoe cleaning services.

2.1.2 PESTEL-analysis
PESTEL analysis is a framework used to assess the external factors that can impact a
business or industry. It considers Political, Economic, Social, Technological, Environmental,
and Legal factors. By examining these factors, businesses can gain insights into the
opportunities and threats in the external environment. PESTEL analysis helps organizations
understand the broader context in which they operate and identify potential risks or
opportunities that may influence their operations and strategic decision-making.

When applying the PESTEL analysis (Appendix 2), the multiple external factors of Sneakers
Fris can be considered. Politically, the company should be in line with regulations related to
product authenticity and intellectual property. Economically, the growth of the sneaker
industry presents opportunities for sales expansion. Socially, the demand for exclusive
sneakers and sneaker culture influences customer preferences. Technological factors, such as
e-commerce platforms and social media, provide opportunities for online sales and
marketing. Environmentally, sustainable, and eco-friendly practices can be integrated into
operations. Legally, the company should be aware of any legal requirements related to
product sourcing, authenticity, and consumer protection.

2.1.3 SWOT-analysis
SWOT analysis is a popular tool for assessing the internal strengths and weaknesses, as well
as the external opportunities and threats, of an organization. It helps identify the key factors
that can affect the organization's ability to achieve its objectives. By analyzing strengths,
weaknesses, opportunities, and threats, businesses can develop strategies to capitalize on their
strengths, address weaknesses, exploit opportunities, and mitigate threats. SWOT analysis
provides a comprehensive understanding of the organization's current position and helps
inform strategic planning and decision-making.

Conducting a SWOT analysis for Sneakers Fris (Appendix 3), the company can identify
internal strengths such as specialization in exclusive sneakers, shoe cleaning services, and a
good brand reputation in Friesland. Weaknesses may include an ineffective inventory
management system, scalability challenges, and limited supplier network. Opportunities lie in
the growing sneaker industry, potential partnerships, and leveraging technology for
operations optimization. Threats include competition from other retailers and resellers, supply
chain disruptions, and changing customer preferences.

2.1.4 Interview
The author of this advice report works at Sneakers Fris as social media manager and already
knows a lot of the company. This resulted in him having a lot of background information. In
this report there will be a lot of references to an interview with Marc, the owner and founder
of Sneakers Fris. To write this report, there were a couple of questions asked to confirm the
basis of knowledge the author had, but to write this report, there was no case of a formal
interview, because of the informal working environment and the good friendship the author
has with the owner of the company. This is also the reason there is no appendix of the
interview, because all this information is essentially the basis of knowledge the author already
had by working at Sneakers Fris for over a year.
3. Methodology
The approach that will be taken when answering each sub-question is explained in this
chapter. Quantitative and qualitative approaches coexist. This project uses both, and the
combination of both is known as the mixed technique. Some questions had fairly obvious
solutions, while others required an interview together with more in-depth desk research in
order to find the solution. Chapter 4: Results provides the answers to the sub-questions.

3.1 Sub question 1

“What is the current process for receiving shoes for consignment and cleaning services at
Sneakers Fris, and where are the bottlenecks that limit the number of shoes that can be
processed?”

This is the first sub question and most of the information which is needed to answer this
question will be used from an interview with the owner of Sneakers Fris. To fill in a few gaps
in the data, some desk research will be done, although it won't be very extensive. Most of the
data gained for this question is new information. Additionally, a combination of desk
research, material from the interview, and the author's interpretation will be used to
thoroughly map the bottlenecks.

3.2 Sub question 2

“What are the potential solutions to increase the number of shoes received for consignment
and cleaning services, and how can the company implement these solutions while minimizing
disruption to its operations?”

This is the second sub question. The methodology for solving this second sub question
involves extensive desk research, an interview with the owner, and interpretation by the
author. Most of the data needed for answering this question will come from thorough desk
research, which gathers data from numerous sources, while the owner interview provides a
few more insights. To determine potential solutions and implementation methods, the author
will combine the data. This process makes sure that all relevant data is analyzed properly
before making recommendations.

3.3 Sub question 3

“How can Sneakers Fris improve its supply chain management processes, such as inventory
management, to better forecast and meet the demand for shoe consignment and cleaning
services?”

This is the third sub question. The third sub-question will only be addressed by desk research.
The only method for addressing the third sub-question, which deals with improving processes
at Sneakers Fris, is extensive desk research. This strategy involves gathering data from many
internet sources and then matching it to the particular environment and needs of the business.
Extensive desk research allows the exploration of case studies, expert opinions, and industry
standards connected to process improvement in related companies. The research uses a
variety of reliable web platforms as well as papers, blogs, industry reports, and other sources.
4. Results
This chapter addresses the sub questions regarding process improvement and supply chain
management at Sneakers Fris. It examines the current shoe receiving process, identifies
bottlenecks, proposes solutions to increase intake, and discusses strategies for minimizing
operational disruption. Additionally, it explores enhancing supply chain management,
particularly inventory forecasting, to meet customer demand effectively. The insights and
recommendations provided aim to optimize operations, enhance customer satisfaction, and
drive sustainable growth for Sneakers Fris in the shoe consignment and cleaning services
industry.

4.1 Sub question 1

“What is the current process for receiving shoes for consignment and cleaning services at
Sneakers Fris, and where are the bottlenecks that limit the number of shoes that can be
processed?”

4.1.1 Consignment
As mentioned in the interview, the current process for receiving shoes for consignment
services at Sneakers Fris involves customers bringing their sneakers to the store. Sneakers
Fris only does consignment deals when customers come by at their store. Upon arrival, the
shoes undergo inspection to assess any damage and the price will be determined for which
they will be sold and what percentage of the sale both parties get. They are then labeled and
entered into the digital inventory management system. The next step is the preparation for
sale, which includes authentication, cataloging and putting them on the shelf in the physical
store. The inventory of the shoes on website isn’t up to date now, so the shoes will not be sold
online. The deal with the customers who put their shoes up for consignment is that the shoes
have to sit on the shelfs for at least 60 days before they are able to take the shoes back. If this
time period has passed, they have the choice to either let the shoes stay in the store or take
them back, because with consignment a sale is never guaranteed.

The bottlenecks that limit the number of shoes that can be processed in the consignment
services process occur at various points, namely:

- Display limit: there is a limit to the shoes that can be put on shelf in the store. There
can be around 60 to 70 shoes on display in the physical store. There could be put more
shoes to sale online but as mentioned earlier, the shoe inventory on the site isn’t up to
date. The storage magazine is full for around 60%, so the storage isn’t a problem that
is of concern in this report.
- Authentication and preparation: Authenticating and preparing shoes for sale can be
time-consuming, especially if manual tasks are involved. Inefficiencies in this stage,
such as inadequate resources or lack of standardized processes, become bottlenecks
and hinder the number of shoes that can be processed. As mentioned in the interview,
this isn’t a huge bottleneck, but on busy days it can be really frustrating to confirm if
all the shoes brought in for consignment are real, together with serving the customers
in store.
- Photography and cataloging: Taking high-quality photographs and creating detailed
catalogs for each pair of shoes can be labor-intensive. At this moment, there aren’t
any pictures made for the site and for cataloging. This is something the company
 wants to work on. There isn’t an efficient system for cataloging the shoes for
consignment.

By identifying these bottlenecks in the current process for receiving shoes for consignment
services, Sneakers Fris can focus on streamlining and optimizing these specific stages to
increase the number of shoes that can be processed within a given timeframe.

4.1.2 Cleaning services

The current process for receiving shoes for cleaning services at Sneakers Fris involves
customers either bringing their sneakers to the store or shipping them. Though Marc said in
the interview that “99% of people bring their shoes to the physical store”. Upon arrival, the
shoes undergo inspection to assess any damage and determine the level of cleaning required.
They are then advised on which package to choose for cleaning their shoes. There are three
packages: 14, 24 and 34 euros. With the cheapest, the shoes are only lightly cleaned on the
outside, with the 24 euros package, the shoes are steamed from the inside and cleaned on the
outside. With the most expensive choose, the shoes are fully cleaned inside out with insole
and outsole included and smell fresh again; with this package the shoes will almost be as
good as new. After the customer chooses an option, he or she will pay, and the shoes will be
places next to the other shoes that need to be cleaned after they are labeled.

Similar to the consignment services process, there can be bottlenecks in the current process
for receiving shoes for cleaning services. The bottlenecks are:

- Cleaning capacity: The capacity of thecleaning department is lacking, through things

such as equipment, staff, and space, and it has become the biggest bottleneck over
time, limiting the number of shoes that can be cleaned within a day. The insufficient
cleaning resources cause delays and prevent efficient processing of shoes. The biggest
problems here are that there just isn’t enough place to store the shoes that need to be
cleaned and that there are often problems that arise because this process isn’t efficient.
Examples are that customers get messages that their shoes are cleaned when they
aren’t cleaned yet, or that the shoe gets the wrong treatment because the orders are
messed up.
- Inspection and assessment: The expertise to know which shoes can be cleaned and
which are already done for is not possessed by a lot of people, which results in taking
in shoes that essentially can’t be cleaned. This is limited due to a shortage of trained
staff and inefficient inspection procedures. This leads to delays and affect the overall
speed of processing shoes for cleaning services.

In conclusion, Sneakers Fris is facing bottlenecks in receiving shoes for consignment and
cleaning services. Inefficient processes, staff shortages, and inadequate resources hinder the
timely processing of shoes, resulting in a backlog of orders and dissatisfied customers.
Additionally, the company's inventory management system lacks accuracy and leads to
outdated inventory information. Improvements are needed to optimize operations, increase
staff capacity, and enhance the inventory management system to meet customer demand and
improve overall efficiency.

4.2 Sub question 2

“What are the potential solutions to increase the number of shoes received for consignment
and cleaning services, and how can the company implement these solutions while minimizing
disruption to its operations?”
4.2.1 Consignment
To increase the number of shoes received for consignment at Sneakers Fris while minimizing
disruption to its operations, the company can consider implementing the following potential
solutions:

1. Expand online consignment: Currently, the shoe inventory on the Sneakers Fris
website is not up to date, limiting the online consignment opportunities. By updating
the website inventory and creating a user-friendly online consignment system, the
company can attract more consignors and increase the number of shoes available for
consignment. This expansion into online consignment reduces reliance on physical
store space and allows for a larger pool of potential consignors (Shopify, 2022).

2. Implement streamlined authentication and preparation processes: To address the

bottleneck in the authentication and preparation stage, Sneakers Fris can establish
standardized processes and guidelines. Training staff members to efficiently
authenticate and prepare shoes for consignment ensures a quicker turnaround time.
Additionally, investing in authentication technology, such as authentication software
or equipment, can help expedite the process while maintaining accuracy (Hypebeast,
2020).

3. Improve cataloging and photography: Creating a systematic approach to cataloging

shoes for consignment, including high-quality photographs, improves the overall
presentation and marketability of the shoes. Sneakers Fris can invest in cataloging
software or systems that automate the process, allowing for efficient catalog creation
and updating. This solution helps increase the number of shoes available for online
and physical display, expanding the range of choices for customers (Hypebeast,
2014).

4. Optimize consignment storage: While storage space is currently not a significant

concern, Sneakers Fris should proactively manage its consignment storage to ensure it
remains sufficient as the business grows. Implementing a systematic storage and
retrieval system, such as using barcodes or RFID tags, enables efficient organization
and quick access to consigned shoes. This solution minimizes the time spent
searching for specific items and ensures smooth operations (Tradegecko, 2023).

5. Explore consignment partnerships: Collaborating with influencers, sneaker

enthusiasts, or local boutiques can expand Sneakers Fris' consignment opportunities.
Partnering with individuals or businesses with a large network of sneaker collectors or
enthusiasts can attract new consignors and increase the volume of shoes available for
consignment. These partnerships can be mutually beneficial, providing exposure for
both Sneakers Fris and the collaborators (Retaildive, 2023).

To implement these solutions while minimizing disruption, Sneakers Fris should consider a
phased approach. By gradually introducing changes and closely monitoring their impact, the
company can ensure smooth operations and assess the effectiveness of each solution. It is
crucial to involve relevant stakeholders, including employees and consignors, in the change
process and provide training or support as needed. Additionally, conducting regular
evaluations and making necessary adjustments based on feedback and performance indicators
will help refine the implemented solutions over time.
4.2.2 Cleaning services
To increase the number of shoes received for cleaning services at Sneakers Fris while
minimizing disruption to its operations, the company can consider implementing the
following potential solutions:

1. Expand cleaning capacity: The current bottleneck in the cleaning department can be
addressed by increasing the capacity through various means. Sneakers Fris can invest
in additional cleaning equipment (Hypebeast, 2016), hire more staff members, and
expand the physical space dedicated to the cleaning process. By doing so, the
company can process a larger volume of shoes within a given timeframe and reduce
delays.

2. Optimize cleaning workflow: Streamlining the cleaning process can help improve
efficiency and reduce bottlenecks. Sneakers Fris can review the current workflow and
identify areas where tasks can be better organized or automated. For example,
implementing a standardized cleaning checklist and utilizing technology such as
barcode scanning or RFID tags can improve accuracy, reduce errors, and enhance the
overall speed of processing shoes for cleaning services (Smartsheet, 2021).

3. Enhance training and expertise: Addressing the bottleneck in inspection and

assessment requires investing in training and developing the expertise of the staff
members responsible for determining which shoes can be effectively cleaned.
Providing comprehensive training programs, workshops, and resources on shoe
cleaning techniques, materials, and limitations will enable the staff to make accurate
assessments and avoid taking in shoes that cannot be effectively cleaned. This will
minimize delays and ensure efficient processing of shoes (The manual, 2023).

4. Implement a digital booking and tracking system: To minimize disruptions and

improve communication with customers, Sneakers Fris can develop a digital booking
and tracking system for cleaning services. This system can allow customers to
schedule appointments, choose cleaning packages, and track the status of their shoes.
Implementing notifications or updates through email or SMS can keep customers
informed about the progress of their orders and reduce unnecessary inquiries (Shopify,
2023).

5. Improve storage and order management: To address the problems arising from the
lack of storage space and inefficient order management, Sneakers Fris can invest in a
more efficient storage system. Implementing a digital inventory management system
that tracks the location and status of each pair of shoes can optimize storage space
utilization and ensure that shoes are processed in the correct order. This will prevent
mix-ups, reduce errors, and streamline the overall cleaning process (Retailbrew,
2023).

When implementing these solutions, Sneakers Fris should carefully plan and prioritize their
execution. It is advisable to start with smaller-scale changes and gradually scale up as the
company assesses the impact and effectiveness of each solution. Engaging the staff and
providing adequate training and support during the implementation process is crucial to
ensure smooth transitions and minimize disruptions. Regular evaluations, performance
monitoring, and customer feedback analysis will help refine and optimize the implemented
solutions over time.

4.3 Sub question 3

“How can Sneakers Fris improve its supply chain management processes, such as inventory
management, to better forecast and meet the demand for shoe consignment and cleaning
services?”

Sneakers Fris can implement the following strategies to enhance its supply chain
management processes, with in particularly inventory management, to improve forecasting
and meet the demand for shoe consignment and cleaning services:

1. Implement an integrated inventory management system: Sneakers Fris should invest

in a comprehensive inventory management system that integrates both physical and
digital inventory. This system should track the number of shoes available for
consignment, their condition, and their cleaning status. By maintaining accurate and
up-to-date inventory records, the company can make more informed decisions
regarding consignment deals, cleaning capacity, and overall resource allocation (Vend,
2023).

2. Adopt demand forecasting techniques: Sneakers Fris can leverage historical sales
data, market trends, and customer feedback to develop demand forecasting models.
By analyzing patterns and identifying demand fluctuations, the company can
anticipate peak periods, plan inventory levels accordingly, and adjust consignment
and cleaning resources to meet expected demand. This proactive approach minimizes
stockouts, reduces excess inventory, and ensures efficient utilization of resources
(Slimstock, 2023).

3. Collaborate with consignors and customers for demand visibility: Sneakers Fris can
enhance its inventory management by establishing effective communication channels
with consignors and customers. Encouraging consignors to provide advance notice of
their intention to bring in shoes for consignment enables better planning and
allocation of display space. Similarly, obtaining customer feedback and preferences
regarding cleaning services can aid in predicting demand and adjusting cleaning
resources accordingly (Hecto, 2023).

4. Leverage data analytics for performance monitoring: Implementing data analytics

tools and techniques can provide valuable insights into inventory performance,
consignment success rates, and cleaning service utilization. Sneakers Fris can analyze
metrics such as sell-through rates, consignment turnover, cleaning service demand,
and customer satisfaction scores to identify areas for improvement and optimize
resource allocation. This data-driven approach helps the company make data-backed
decisions and improve overall supply chain management effectiveness (GetApp,
2021).

5. Continuously optimize processes through feedback and analysis: Sneakers Fris should
actively seek feedback from consignors, customers, and employees to identify pain
points, bottlenecks, and areas for improvement in inventory management. Regularly
analyzing process data, monitoring key performance indicators, and conducting
periodic reviews allow for ongoing optimization. By continuously refining processes,
 the company can adapt to changing market dynamics, improve efficiency, and meet
evolving customer demands (BetterUp, 2022).

By implementing these strategies, Sneakers Fris can enhance its supply chain management
processes, specifically inventory management, to better forecast and meet the demand for
shoe consignment and cleaning services. The integration of advanced technologies, data-
driven decision-making, and continuous improvement efforts will enable the company to
optimize resource allocation, minimize stockouts, and deliver a more efficient and
satisfactory experience to consignors and customers.
5. Conclusions and recommendations
In this final chapter, the conclusions drawn from the research on the inventory management
and operational efficiency of Sneakers Fris will be presented. The key findings regarding the
bottlenecks faced by the company will be summarized and provided with recommendations
for optimizing its processes. Additionally, the research question addressed in this study will
be highlighted and finally there will be suggestions for future research to further enhance the
operations of Sneakers Fris.

5.1 Summary of Findings

In conclusion, Sneakers Fris faces bottlenecks in its processes for receiving shoes for
consignment and cleaning services. These bottlenecks include limitations in display space,
inefficiencies in authentication and preparation, and challenges with cataloging and
photography for consignment. For cleaning services, the bottlenecks lie in the capacity of the
cleaning department and the expertise in inspecting and assessing shoes.
To increase the number of shoes received while minimizing disruption, Sneakers Fris can
consider implementing various solutions. For consignment, expanding online consignment,
streamlining authentication and preparation processes, improving cataloging and
photography, optimizing storage, and exploring consignment partnerships can help increase
the volume of shoes processed. For cleaning services, expanding cleaning capacity,
optimizing the workflow, enhancing training and expertise, implementing a digital booking
and tracking system, and improving storage management can address the bottlenecks.

To improve supply chain management, Sneakers Fris can invest in an integrated inventory
management system, adopt demand forecasting techniques, collaborate with consignors and
customers for demand visibility, leverage data analytics for performance monitoring, and
continuously optimize processes through feedback and analysis.

By implementing these strategies, Sneakers Fris can optimize operations, increase the number
of shoes processed, meet customer demand effectively, and drive sustainable growth in the
shoe consignment and cleaning services industry.

5.2 Research Question Answered

“What are the key factors contributing to the shortage of shoes at Sneakers Fris, and how
can the company optimize its OPM & SCM processes to increase the number of shoes
received for consignment and cleaning services?”

The current process for receiving shoes for consignment services involves customers bringing
their sneakers to the physical store. Upon arrival, the shoes undergo inspection for damage
assessment and pricing. The labeled shoes are then entered into a digital inventory
management system and prepared for sale. However, there are bottlenecks in this process.
The display limit in the store restricts the number of shoes that can be showcased.
Authentication, preparation, cataloging, and photography can be time-consuming, especially
on busy days. Furthermore, the inventory on the website is not up to date, limiting online
sales opportunities.
For receiving shoes for cleaning services, customers either bring their sneakers to the store or
ship them. After inspection and assessment, customers choose a cleaning package based on
the level of cleaning required. The bottleneck in this process is the cleaning capacity, which
lacks equipment, staff, and space. Additionally, the expertise to determine which shoes can be
effectively cleaned is limited due to a shortage of trained staff and inefficient inspection
procedures.

To address these challenges and increase the number of shoes received for consignment and
cleaning services, Sneakers Fris can implement various solutions. For consignment services,
the company can expand online consignment opportunities by updating the website inventory
and creating a user-friendly online consignment system. Streamlining authentication,
preparation, cataloging, and photography processes can improve efficiency. Sneakers Fris
should also optimize consignment storage and explore partnerships to attract more
consignors.
To increase the number of shoes received for cleaning services, Sneakers Fris should focus on
expanding cleaning capacity through additional equipment, staff, and space. Streamlining the
cleaning workflow, enhancing training and expertise in shoe inspection, and implementing a
digital booking and tracking system can improve efficiency and customer communication.
Improving storage and order management with a digital inventory management system can
optimize the cleaning process.

In addition to these process improvements, Sneakers Fris can enhance its supply chain
management practices to better forecast and meet the demand for consignment and cleaning
services. This includes implementing an integrated inventory management system, adopting
demand forecasting techniques, collaborating with consignors and customers for demand
visibility, leveraging data analytics for performance monitoring, and continuously optimizing
processes through feedback and analysis.
By optimizing its operations, streamlining processes, enhancing supply chain management,
and implementing the suggested solutions, Sneakers Fris can overcome the key factors
contributing to the shortage of shoes. This will result in increased efficiency, improved
customer satisfaction, and sustainable growth for the company in the shoe consignment and
cleaning services industry.

5.4 Recommendations for Future Research

To get an even better idea on how to optimize its processes, two recommendations for future
research can be made:

Sneakers Fris should conduct a comprehensive supply chain analysis to identify areas for
improvement. Assess supplier reliability, explore sustainable partnerships, and optimize
inventory management. This will enhance operational efficiency, reduce costs, and improve
customer satisfaction.
Secondly, Sneakers Fris must understand consumer behavior through research, so it is
recommended to do extensive research on consumer behavior patterns. It is recommended to
gather insights on buying habits, brand loyalty, and emerging trends. Surveys, interviews, and
social media analysis can be used. Tailor marketing strategies, product development, and
branding to meet customer needs. Stay updated on trends to remain competitive in the
market.
6. Management of Change theory and implementation
In this chapter, Kotter's Eight-Step Change Model is applied to the cleaning and consignment
business of Sneakers Fris. The model of Kotter offers an organized approach to manage
organizational change and encourage cultural change. By using this strategy, Sneakers Fris
will be able to effectively deal with the challenges of change, develop a culture of trust and
cooperation, and succeed over the long term in the sneaker business.

6.1 Kotter’s Eight step model

One prominent change management theory that can greatly benefit Sneakers Fris is Kotter's
Eight-Step Change Model, developed by John Kotter. This model provides a structured
approach for managing organizational change and can help guide Sneakers Fris in
implementing changes successfully. Let's explore how each step of Kotter's model can be
applied to Sneakers Fris:

Step 1: Create a sense of urgency:

To initiate change, it is crucial to create a sense of urgency within the organization. Sneakers
Fris should communicate the need for change by highlighting evolving market trends,
customer preferences, and the potential consequences of inaction. This will help employees
understand the importance of change and motivate them to embrace it.

Step 2: Form a guiding coalition:

Building a guiding coalition involves assembling a group of influential individuals within the
organization who can provide support, leadership, and expertise during the change process.
Sneakers Fris should involve key stakeholders, such as managers, employees, and external
partners, to form a coalition that will drive the change effort forward. This coalition should be
representative of different departments and levels within the organization.

Step 3: Develop a vision and strategy:

A clear vision of the desired future state is essential for effective change management.
Sneakers Fris should develop a well-defined strategy that outlines the steps and actions
required to optimize their operations and supply chain management processes. The vision and
strategy should be communicated to all stakeholders and serve as a guiding framework for the
change effort.

Step 4: Communicate the vision:

Sneakers Fris must effectively communicate the vision and strategy to all stakeholders in a
compelling and engaging manner. Clear and consistent communication will help gain buy-in,
build support, and create alignment throughout the organization. Sneakers Fris should use
various communication channels, such as town hall meetings, emails, and regular updates, to
ensure that the vision and strategy are understood by all.

Step 5: Empower broad-based action:

To implement change successfully, Sneakers Fris should empower employees at all levels to
take action. This involves removing barriers, encouraging initiative, and fostering a culture of
innovation and collaboration. Employees should feel empowered to contribute their ideas and
be actively involved in the change process. Providing training and support will enable
employees to develop the skills necessary to adapt to the changes effectively.

Step 6: Generate short-term wins:

Celebrating and communicating short-term wins will help maintain momentum and
motivation during the change process. Sneakers Fris should focus on achieving visible and
tangible results that demonstrate the value and benefits of the changes made. This will help
build confidence and support among employees and stakeholders.

Step 7: Consolidate gains and produce more change:

After initial successes, it is crucial for Sneakers Fris to consolidate the gains and build upon
them. This involves reinforcing new behaviors, systems, and processes and continuously
seeking opportunities for further improvement and change. Regular evaluation and
monitoring of the changes will help identify areas for refinement and ensure that the changes
are sustainable in the long run.

Step 8: Anchor new approaches in the culture:

To ensure the long-term sustainability of change, Sneakers Fris needs to anchor new
approaches, values, and behaviors into the organizational culture. This can be achieved by
aligning the culture with the desired change and reinforcing it through performance
management, recognition, and reward systems. Leadership should exemplify the desired
behaviors and serve as role models for the organization.

By following Kotter's Eight-Step Change Model, Sneakers Fris can effectively manage
change. This systematic and structured approach emphasizes the importance of
communication, empowerment, and creating a change-embracing culture. The model
provides a clear overview, which can be found in Appendix 4, on how to successfully manage
the whole change process. By following this model, Sneakers Fris can navigate the
complexities of change and ensure a smooth transition towards achieving its desired goals
and objectives.

6.2 How does it change culture.

One notable change will be the increased openness to change among employees. By creating
a sense of urgency and effectively communicating the need for change, Sneakers Fris will
help employees recognize the importance of embracing new ways of doing things. This shift
in mindset will create a culture where employees are more willing to explore innovative
solutions, adapt to evolving market trends, and readily embrace change.
Collaboration and cross-functional cooperation will become fundamental aspects of Sneakers
Fris's culture. The formation of a guiding coalition, consisting of representatives from
different departments and levels within the organization, will break down silos and encourage
employees to work together towards common goals. This collaborative approach will foster a
culture of teamwork, knowledge sharing, and collective problem-solving, enabling the
organization to tackle challenges more effectively.

Overall, the implementation of Kotter's Eight-Step Change Model at Sneakers Fris will lead
to a cultural transformation characterized by openness to change, collaboration and a a
results-oriented mindset. This transformed culture will provide a solid foundation for the
organization to navigate future challenges, adapt to market dynamics, and achieve long-term
success in the sneaker industry.
Reverences
Shopify. (2022). What Is Consignment? Retrieved from Shopify:
https://www.shopify.com/blog/what-is-consignment
Hypebeast. (2020). Is the Future of Sneaker Authentication Human or Technology? Retrieved
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entrupy-stockx
Hypebeast. (2014). The Guide to Sneaker Photography . Retrieved from Hypebeast:
https://hypebeast.com/2014/9/the-hypebeast-guide-to-sneaker-photography
Tradegecko. (2023). Choosing the right inventory management system for your eCommerce
business. Tradegecko.
Retaildive. (2023). Nuances of influencer marketing: Building successful partnerships in
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https://www.retaildive.com/ex/mobilecommercedaily/nuances-of-influencer-
marketing-building-successful-partnerships-in-luxury
Hypebeast. (2016). Jason Markk Shows Us How to Clean 4 Common Sneakers in 4 Minutes .
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cleaning-tutorial-video
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Control Systems . Retrieved from Smartsheet:
https://www.smartsheet.com/content/barcode-inventory-management
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management-is-important-for-retailers
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Slimstock. (2023). Demand Planning – The Ultimate Guide. Retrieved from Slimstock:
https://www.slimstock.com/blog/demand-planning/
Hecto. (2023). Here’s Why Brand Collaboration Is Important to Grow. Retrieved from Hecto:
https://www.hecto.io/resources/brand-collaboration-is-important-to-grow/
GetApp. (2021). 4 stappen om performance monitoring te implementeren. Retrieved from
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BetterUp. (2022). 16 constructive feedback examples — and tips for how to use them.
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Appendices
Appendix 1; Business Model Canvas

Appendix 2; PESTEL
Appendix 3; SWOT-analysis

Appendix 4; Kotter’s 8 step model