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Nofsdad
Joined: 06 Jul 2003
Posts: 8212
Location: Central CA
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Posted: Sat Oct 20, 2007 2:32 am Post subject: From the cubicle of the CEO
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How did Crowley wind up with MY office?
Oh well, here's my weekly serving of the usual.
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Date: Oct. 18, 2007
To: All Sears Holdings Associates
From: Aylwin Lewis
Re: Product Quality is a Team Effort
The appliance business is one of the foundations of Sears Holdings. Mark Good, Bruce Johnson and I want to share with you a little information about our Product Quality Team, which plays a critical role in the appliance business. In short, they focus on maximizing the customer's total experience with their appliance purchase by working with our suppliers, as well as our distribution, stores, delivery, installation, call center and service organizations. We want to explain what this team is doing to improve the customer's appliance purchase experience.
From a customer's perspective, a perfect appliance purchase consists of the following: a first attempt on-time delivery, the absence of the need to return the appliance for any reason, the absence of the need to request any type of concession (such as a gift card) and the absence of the need for service within the first year of ownership. By focusing on reducing returns, incomplete deliveries, customer concessions and warranty service by 50%, the Product Quality Team's goal is to create over 800,000 additional perfect customer experiences each year.
Besides providing that perfect experience for our customers, the team will in turn reduce the total cost of quality associated with returns, incomplete deliveries, concessions, and warranty service. The team's goal is to reduce these costs by 50% by the end of 2009. With our current total cost of quality totaling over $400 million annually, that's over $200 million added to the bottom line.
The Product Quality goals all tie into our Mission:
1. Build Customer Relationships - by keeping our promises during selling, delivering, installing and servicing our customer' appliances in order to build and maintain that customer as a Sears customer for life.
2. Make More Money - by removing over $200 million in Product Quality related expense by the end of 2009.
3. Improve Every Day - by working together throughout the organization on projects and initiatives to constantly improve the customer's appliance purchase experience.
Our Product Quality goals also align with our Ultimate Appliance Promise. By focusing on Product Quality, we will help deliver on our promise and solidify Sears Holdings as the leader in appliances.
We have a dedicated Product Quality team of over 50 individuals at the Hoffman Estates Support Center and in the field. However, we cannot accomplish our goals without the help of each and every associate across the enterprise. I challenge you to look for new ways to improve the end-to-end customer appliance purchase experience every day. You can provide feedback to the Product Quality team via their new Product Quality website/forum. We urge you to take some time to check out the Web site in order to learn more about Product Quality, offer your input, and stay in tune with the team's progress.
Regards,
Aylwin |
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LastChanceForSears
Joined: 06 Jul 2003
Posts: 711
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Posted: Sat Oct 20, 2007 12:19 pm Post subject:
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"From a customer's perspective, a perfect appliance purchase consists of the following: a first attempt on-time delivery, the absence of the need to return the appliance for any reason, the absence of the need to request any type of concession (such as a gift card) and the absence of the need for service within the first year of ownership"
'cept that PM check! can't 4get he value at a glance
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Magnolia
Joined: 26 Aug 2005
Posts: 1700
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Posted: Sat Oct 20, 2007 12:29 pm Post subject:
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| "...the absence of the need for service within the first year of ownership" |
From a customer's viewpoint - I EXPECT a new appliance to perform properly for TEN YEARS. Not one.
Once again, Al is attempting to sound like he knows what he's talking about. He's putting out BS to soothe the shareholders, again.
This statement, I guess, is intended to make it appear that the company actually knows what the customer wants.... it only shows that the company hasn't a clue.
This statement is truly from an insider's perspective... of what the company will give... not what the customer truly wants.
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BCPayCut
Joined: 31 Jul 2003
Posts: 69
Location: Long Island, NY
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Posted: Sat Oct 20, 2007 12:58 pm Post subject: $200 million more for Eddie.
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| Quote: |
| The team's goal is to reduce these costs by 50% by the end of 2009. With our current total cost of quality totaling over $400 million annually, that's over $200 million added to the bottom line. |
Where do you think that $200 million will go? Not reinvested into the stores, certainly not to reward the employees who made it happen. Hmmm, I know! To the shareholders(re:Eddie).
A ongoing viable company would certainly return some of their savings to shareholders but a portion would go into their business and employees. But that's not what SHLD is.
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allhandsabandonship
Joined: 28 Apr 2005
Posts: 2073
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Posted: Sat Oct 20, 2007 9:39 pm Post subject: Re: From the cubicle of the CEO
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| Nofsdad wrote: |
From: Aylwin Lewis
Re: Product Quality is a Team Effort
From a customer's perspective, a perfect appliance purchase consists of the following: a first attempt on-time delivery, the absence of the need to return the appliance for any reason, the absence of the need to request any type of concession (such as a gift card) and the absence of the need for service within the first year of ownership.
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Now where did Allwind get that item about service within the first year of ownership? It certainly didn't come from the customers. Absence of the need for service within several years would be closer to the truth. But then it would be hard to fit the PA pitch into their model of the "perfect appliance purchase".
It's kind of hard to design a perfect customer transaction if they refuse to take into account what the customers actually want..
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justanothersearsdolt
Joined: 21 Feb 2005
Posts: 276
Location: Chicago Il.
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Posted: Sun Oct 21, 2007 11:29 am Post subject:
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"Now where did Allwind get that item about service within the first year of ownership? It certainly didn't come from the customers. Absence of the need for service within several years would be closer to the truth. But then it would be hard to fit the PA pitch into their model of the "perfect appliance purchase".
It has nothing to do with a perfect customer. You missed the subtle screwing Alwyn hopes for: "If the f'ing thing is going to break, break out of warranty! We're spending too much money honoring those damned warranties!! Build them to last 400 days!!!
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dictators_rule
Joined: 08 Jul 2003
Posts: 6045
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Posted: Sun Oct 21, 2007 8:27 pm Post subject:
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'by focusing on reducing...warranty service'-wait a minute,you just pressured the employees to sell & the customer to buy those overpriced PAs and now you want less warranty service.
Or is this simple extortion;"well if you had bought the PA..."
Didn't or doesn't mr poop frequently espouse THE INTEGRITY issue in his useless memos.Oh yeah,great value and just wait til they try to talk you into playing service tech to diagnose and/or fix YOU paid to have fixed via the PA.WHAT A CROCK!
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Cramerican
Joined: 17 Aug 2007
Posts: 229
Location: Illinois
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Posted: Tue Oct 23, 2007 1:42 am Post subject:
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I suppose it was these same geniuses with the idea to route all appliance calls to a call center in India too...
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unknown
Joined: 07 Oct 2004
Posts: 611
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Posted: Tue Oct 23, 2007 3:55 am Post subject:
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I swear, this is that other chick. Or he's got split personality. They don't even sound the same.
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allhandsabandonship
Joined: 28 Apr 2005
Posts: 2073
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Posted: Tue Oct 23, 2007 5:40 pm Post subject:
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You have to wonder how the business survived before Eddie, Allwind and company came along to save the day. Previous administrations were so stupid they left 200 easy millions lying around in "product quality". So now Allwind just has to form a product quality team and they can scoop up these easy bucks and put em into their own pockets.
They already clamped down on return policies so it's hard to see what this "product quality team" can possibly accomplish. As usual Allwind and his peons haven't the slightest idea what they are dealing with. What makes them think it's feasible to cut 50% from product quality expense?
All the Allwind team does is babble and kill time. Since the company is doomed anyway, why not come up with ridiculous plans and goals?
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dictators_rule
Joined: 08 Jul 2003
Posts: 6045
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Posted: Tue Oct 23, 2007 7:02 pm Post subject: manufacturer's warranty
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The only way I see reducing 'warranty expense' per say is by accounting.In other words if it's under the manufacturer's warranty you don't take it under the PA.Prime example would be the Replacement Agreements-many just ring it under a PA replacement when it's actually covered under the manufacturer warranty.They'll be more pressure to ring under manufacturers warranty now.They'll also be more pressure to make the customer deal directly with the manufacturer if that's what manufacturer wants-even under 90 days.
Stricter return policy would help BUT with the restocking fee in place you can't demand much more from the customer.For years Sears lost $$$ from vendors by taking incomplete returns(missing manuals,accersories,packaging etc),the restocking fee and 90 day return cut down alot of that,especially the 30 day in HE.
I know many stores are trying to impose a 'shipping fee' to the service center even if the customer has the Repair Agreement and even the manual says stuff like ' just return to any Sears or service center for...'.Also recenty read in post where a local service center was trying to impose a $20 fee even on a MPA covered service call? PAY hundreds of dollars in advance and there's still fee?
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