Business – 4.3 Capacity utilisation and outsourcing – Capacity utilisation | e-Consult
4.3 Capacity utilisation and outsourcing – Capacity utilisation (1 questions)
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Both strategies aim to get more output from existing resources, but they differ in focus and implementation.
- Technology upgrades involve introducing new hardware or software (e.g., self‑checkout kiosks, inventory management systems).
- Process re‑engineering redesigns existing workflows (e.g., changing stock replenishment cycles, flattening organisational hierarchies).
The table below highlights the main contrasts:
| Aspect | Technology Upgrades | Process Re‑engineering |
| Initial Cost | High – capital expenditure on equipment/software. | Low to moderate – mainly training and consultancy. |
| Implementation Time | Medium – installation and testing phases. | Variable – can be rapid if simple, longer for complex redesigns. |
| Impact on Staff | May require new skills; risk of resistance. | Focuses on changing behaviours; can improve morale if well‑communicated. |
| Sustainability | Long‑term benefit if technology remains current. | Continuous improvement culture can sustain gains. |
In practice, many retailers combine both approaches: upgrading point‑of‑sale systems while re‑designing the checkout process to maximise capacity utilisation.