Pleasant Ridge Habitat for

Humanity Second Chance

Home Supply
BY GROUP 9
 Case Background

 Positive Ridge A global nonprofit organization with the mission of "a world
where everyone has a decent place to live," Habitat for Humanity was an
affiliate.
 Inreality, this meant that volunteers gathered to raise money for money to
construct or restore homes for the homeless accessibility to suitable housing.
 Clients rather than individuals in need received the homes.to devote time to
improving the house and receive an low-cost mortgage These mortgage
payments were then used to invest again to aid in constructing new houses
for extra clientele in need.
 Case Background

 In 2017, the local nonprofit was constructing one home annually and had seven paid
employees, all of whom worked part-time.
 The part time paid staff consisted of the executive director, business manager, volunteer
coordinator, home build supervisor, store manager, assistant store manager, and truck
driver who ran the SCHS store.
 Client mortgage payments, revenues from yearly auctions, monetary donations, and
sales proceeds from the SCHS store were the primary sources of funding for the
organization.
 Store manager Rocke and assistant store manager Williams shared management of the
SCHS store.
 Case Background

 SCHS shop revenues overall decreased by 15% from FY16 to FY17. Additionally,
the store's contribution to the organization's primary goal of providing those without
access to sufficient housing with homes fell down 50% from FY16 to FY17.
 Although the store raised its hours from being open only two and a half days a
week in FY16 to being open five days a week in FY17 and boosted its social media
activity in FY17 in an effort to grow both sales and contribution, these decreases in
the revenues and contribution still occurred.
 The team is currently looking for a way forward in light of the unsatisfactory
outcomes. Should they go back to the functioning model from FY16?
 What are the aspects of store operations
that you think needs improvement?
 Technological Aspects:
1. They can invest in inventory management systems
2. They can create websites or applications to provide a user interface where information
about in-stock items can be obtained
 2. Procurement & Disposal Aspects:
1. Reduce disposal expenses by streamlining the procurement process by implementing a
SOP
2. Choose to accept significant donations and distribute them to businesses
3. Collaborate with local dealers to sell products that would otherwise be discarded.
 What are the aspects of store operations
that you think needs improvement?
 Consumer Insights:
1. They can prioritize their inventory and avoid missing out on sales opportunities by using
previous consumer data.
2. They can also reduce stocking up on low-selling items.
3. They can do appropriate merchandising in accordance with customer preferences and
shopping patterns.
4. They can change the store layout to prevent crowding of customers at any given time.
5. They can also change the operating days and hours because of uneven foot traffic during
the week.
 Seasonality of Demand

FY 2018
Average Percentage FY 2018
Percentage of Seasonal Forecast
FY2013 FY2014 FY2015 FY2016 FY2017 Monthly Above/Below Seasonal
Sales Index (Average
Revenue Average Sales Forecast
Sales)
 
July   $5,434 $5,262 $7,533 $4,080 $5,577 7% 0.75 -25% $9,324 $6,950
August   $8,014 $7,081 $11,889 $7,428 $8,603 11% 1.15 15% $9,324 $10,720
September   $6,724 $7,178 $10,036 $8,417 $8,089 10% 1.08 8% $9,324 $10,080
October   $7,376 $6,812 $11,444 $10,245 $8,969 11% 1.20 20% $9,324 $11,177
November   $5,367 $7,517 $6,521 $6,659 $6,516 8% 0.87 -13% $9,324 $8,120
December   $4,496 $6,423 $7,114 $8,439 $6,618 8% 0.88 -12% $9,324 $8,247
January $4,408 $5,728 $7,480 $8,516 $6,348 $6,496 8% 0.87 -13% $9,324 $8,095
February $2,581 $4,296 $7,528 $11,527 $6,799 $6,546 8% 0.87 -13% $9,324 $8,157
March $2,152 $5,946 $8,504 $9,054 $9,056 $6,942 9% 0.93 -7% $9,324 $8,651
April $5,644 $9,596 $7,737 $9,609 $8,658 $8,249 10% 1.10 10% $9,324 $10,279
May $4,444 $7,823 $8,727 $10,784 $9,545 $8,265 10% 1.10 10% $9,324 $10,299
June $4,659 $6,833 $11,509 $10,178 $11,432 $8,922 11% 1.19 19% $9,324 $11,118
Total Year $23,888 $77,633 $91,758 $1,14,205 $97,106 $80,918 100% 12 0% $1,11,893 $1,11,893

Overall Average $7,483

Seasonality of Demand

 Based on the Seasonality Index and Forecast done from historical financial data, the
SCHS Store demand varies throughout the year.
 In Summer & Spring, the demand for sales is typically lies slightly above the average
sales.
 In Autumn, the demand for sales is significantly above the average sales.
 Whereas in Winter, the demand for sales is significantly low and lies upto 15% below the
average sales.
 Category wise Sales Contribution

Product Category Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Contribution

Appliances 1,082 2,267 2,049 2,350 7,748 8%
Building materials 4,607 5,906 6,392 6,685 23,590 24%
Cabinets 1,416 1,268 1,887 2,103 6,674 7%
Doors 1,926 1,876 1,661 2,022 7,484 7%
Electrical 803 1,061 819 844 3,527 4%
Furniture 3,665 4,246 3,947 5,811 17,669 18%
Housewares 951 1,213 1,716 1,774 5,655 6%
Light fixtures 1,110 912 1,257 1,358 4,637 5%
Plumbing 3,893 1,315 1,272 1,401 7,881 8%
Tools 1,174 2,117 1,169 2,759 7,219 7%
Windows 598 242 633 593 2,066 2%
Garden 1,128 1,131 497 2,143 4,899 5%
Misc & Holiday 24 826 114 247 1,211 1%
Total Revenue $22,377 $24,381 $23,412 $30,089 $1,00,260 100%

Building Materials contribute most to the store sales.

 Category wise Revenue per Area (Sq. Foot)

Product Category Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Area (Sq. Foot) Revenue Per Sq. Feet
Appliances 1,082 2,267 2,049 2,350 7,748 270 28.7
Building materials 4,607 5,906 6,392 6,685 23,590 460 51.3
Cabinets 1,416 1,268 1,887 2,103 6,674 590 11.3
Doors 1,926 1,876 1,661 2,022 7,484 90 83.2
Electrical 803 1,061 819 844 3,527 120 29.4
Furniture 3,665 4,246 3,947 5,811 17,669 680 26.0
Housewares 951 1,213 1,716 1,774 5,655 130 43.5
Light fixtures 1,110 912 1,257 1,358 4,637 190 24.4
Plumbing 3,893 1,315 1,272 1,401 7,881 190 41.5
Tools 1,174 2,117 1,169 2,759 7,219 320 22.6
Windows 598 242 633 593 2,066 110 18.8
Garden 1,128 1,131 497 2,143 4,899 90 54.4
Misc & Holiday 24 826 114 247 1,211 60 20.2
Total Revenue $22,377 $24,381 $23,412 $30,089 $1,00,260    

Doors’ category produces most revenue per Sq. Foot of Area.