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TASK-BASED STANDARD OPERATING PROCEDURE APPROACH TO

IMPLEMENT BUSINESS PROCESS MANAGEMENT IN RETAIL

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 TASK-BASED STANDARD OPERATING PROCEDURE
APPROACH TO IMPLEMENT BUSINESS PROCESS
MANAGEMENT IN RETAIL
Diep N.T. Nguyen
Abstract

Purpose: Nowadays Retailers are dealing with not only their rivals’ competitions but also
pressures of customers‘ demands, shorter product life cycles, and especially the acceleration of
innovation in technology. To survive and develop, Retailers continue improving their
performance through Business Process Management (BPM), which has become an essential
instrument to enable their business strategies and objectives to be well-controlled and fulfilled.
This paper aims to propose a format of Standard Operating Procedure (SOP) to implement BPM
effectively with a task-based approach for operations activities including Merchandising,
Operations, Promotion, Controlling, Personnel, Supports, and Supply-chain in retail.

Design/methodology/approach: To achieve the objectives, Descriptive method was used,

comprising (i) Survey approach (interview and questionnaire) to examine the frequency,
attitudes, beliefs, prejudices, preferences, and opinions on how BPM was implemented with the
SOP approach of interviewees, who were key persons in big retailers; and (ii) Observational
approach to view performance of retailers in the business environment (real-life situation
instead of laboratory) and crosscheck the result of survey. With the research results, the author
may identify all most key tasks in a Retailer, which are prerequisites to establish the full set of
SOPs so that BPM will be implemented efficiently.

Findings: Different from previous research, this paper focuses on how SOP contributes to BPM
implementation in the retail industry as well as illustrates that besides initiative process
modeling, identification of key tasks in an SOP is very essential to make it clear and
comprehensible for operators to follow. Although RACI/RASCI matrix 1 (Petrakova and
Reusch) is used quite popularly in many organizations, it does not satisfy all requirements of
Retailers to implement BPM and deploy SOP. Therefore, the proposed “TRATS“ model (Task,
Responsible, Approval, Time, and Standards), which are based on basic tasks in retailing,
presented in task-based SOPs, may cover almost the gaps and help Retailers perform BPM more
efficiently and effectively.

1 RA(S)CI stands for Responsible, Accountable, (Support), Consulting and Informed.

1
Research/practical implications: Through the research, author would like to emphasize that
BMP and SOPs are well-performed only if they were easily comprehended and firmly
conceived by employees, so that business objectives may be accomplished; therefore, SOPs
must be detailed and comprised all operational aspects for employees to comply with. The
research is also the combination of academic knowledge and practical experience of BPM
implementation in terms of SOP, of which expectation becomes a reliable source and basic
reference for further research in BPM as well as a guideline for Retailers to improve operations
management.

Originality/value: Differing from manufacturers, retailers are about people while technology
cannot completely replace human skills; therefore, BPM may be presented as items of works
chronologically in written, so-called “task-based SOPs“, which are more comprehensible for
employees to perform and accomplish the objectives of enterprises easily and efficiently.
Expectedly, SOP with “TRATS“ model may be useful for practitioners because it can cover
almost all important aspects in BPM implementation, therefore it can help them to improve
their business performance. For academics, “TRATS”-SOP (or task-based SOP”) approach
may be a new point for researchers who are interested in BPM of the retail industry and want
to develop it in further literature.

Keywords: Business process management (BPM), Operations, Retail, Standard Operating

procedure (SOP), Task-based approach.

JEL Codes: M12, M19

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1. INTRODUCTION
Business process management (BPM) is the achievement of an organization’s objectives
through improvement and management. More than just software or modeling, it concerns how
these processes are implemented and executed (Jeston and Nelis, 2008). BPM is considered as
a comprehensive approach to realizing efficient and effective business activities in enterprises
(Lemańska-Majdzik and Okręglicka, 2015). As Dumas et al (2012), the first initiative of the
BPM lifecycle (Fig.1) is termed process identification or so-called process architecture, in
which key business processes identified will be ensured to cover all crucial activities and
accomplish the expected outcomes in the relationships among them. The second phase
is process discovery, in which processes are presented in detail models to communicate among
relevant persons how to deploy. For easier comprehension, the process is usually described in
a diagram or flowchart, which is standardized with Business Process Management and Notation
(BPMN) by the Object Management Group (OMG) 2 in 2011. Process analysis is a very
important step to identify any issue in a process such as person(s) involved, resource(s) used,
outcome(s) expected, time spent and frequency in each task, and performance measures, then
to redesign the process. After the process was redesigned, implementation is a very important
phase. However, Dumas et al (2012) only focused on one approach, which is deployed in a
Business Process Management System (BPMS). In order to be executable and suitable for retail,
this phase may be deployed with the SOP approach. Therefore, process monitoring and
controlling to assess how well BPM performs will be modified and customized accordingly.
Also, this improvement will be presented in the task-based SOP approach as a recommendation
in this article.

Fig. 1: BPM lifecycle

Source: Dumas et al (2012)

2
https://www.omg.org

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This paper is structured as follows: Firstly, the need for BPM implementation with SOPs will
be discussed based on theory grounded and practice combined; then why the SOP approach is
essential and bring benefits for BPM implementation will be explained. Secondly, identification
of key operational processes for SOP preparations to implement BPM in retail will be presented,
then the task-based SOP will be introduced as the new point of this article. Finally, it is the
conclusion on implications and further research possibilities.
2. BPM IMPLEMENTATION WITH SOPs
2.1. Process vs Procedure
Based on ISO 9001:2015 - Quality management systems3, the relationships between Processes,
Procedures, and Work Instructions are redefined and explained as follow:
- The Process term is the high level of strategic methods of control, determines the
needed objectives and resources.
- Whereas, procedures add more details of specifications, specific tools, and
measurements, in which work instruction is the step-by-step guideline to implement
the process and procedure uniformly (Fig.2).

Fig.2: Relationship between Process and Procedure

Source: Standards Stores (9000 Stores)
The ISO 9001:2015 standard defines the concept of Business Process as: “A set of related or
interacting activities, which transform inputs into outputs.” It is possible to qualify
something more by saying that a process is a sequence of activities with a realization order in
time, which converts a given input into an output. Any activity, or set of activities, that uses
resources to transform input elements into results can be considered as a process.

3
https://www.iso.org/obp/ui/#iso:std:iso:9001:ed-5:v1:en

4
On the one hand, referred to ISO 9001:1987-2000 and ISO 9001:2008, a posting of Transition
Support (2018) presents that procedure, also-called documented procedure or documented
information, identifies the scope and applicability, definitions, inputs, activities, outputs, and
reference documents to fulfill the objectives; while a managed process, based on ISO 9001:2015
is the flow which comprised resources allocated (inputs), through activities, and objective
achieved (outputs) to make demand satisfied. In this flow, the result is also reviewed and
measured to create improvement. On the other hand, based on their natures, there are several
differences between Processes and Procedures, which are described in Table 1.
Table 1: Differences between Processes and Procedures (as their natures)
Processes Procedures
Are driven by the achievement of the desired
Are driven by the completion of the task
outcome
Are operated Are implemented
Steps are completed by different people
Stages completed by different people with the
in different departments with different
same objectives; departments do not matter
objectives
Flow to conclusion Are discontinuous
Focus on satisfying the customer Focus on satisfying the rules
Define the sequence of steps to execute a
Generate results through the use of resources
task
People work through a process to achieve an
Are used by people to carry out a task
objective
Are dynamic they cause changed Are static until changed
Make things happen, regardless of people Only cause people to take actions and
following procedures decisions
Function through the actions and decisions
Prescribe actions to be taken
that are taken
Select the appropriate procedures to be
Identify the tasks to be carried out
followed at each stage of a process
Source: Modified from Transition Support
2.2. BPM vs SOP
Business processes have become familiar with all organizations, whether they are government
agencies, non-profit organizations or enterprises (Dumas et al, 2012). A business process also
involves many factors such as manpower, software applications, equipment, materials, and
immaterial objects. For enterprises, business processes are what they perform to deliver services
or products to their customers. In other words, the business process is defined as a collection of
inter-related events, activities, and decision points that involve many factors and objects, and
that collectively lead to an outcome of value to customers.

5
According to Dabaghkashani et al (2012), Business Process Management (BPM) is recognized
as the best way to facilitate process improvements by providing real benefits such as
Automation of Standard Procedures and Processes, Ability to Visualize, Simulate and Trouble-
Shoot Business Processes, Change Business Rules and Processes. They also define that the
Business process is the complete and dynamically coordinated set of collaborative and
transactional activities that deliver value to customers.
In fact, enterprises use BPM as a framework of their operational activities to optimize their
resources in inputs to outputs to satisfy their customers, achieve objectives, as well as increase
the efficiency and effectiveness through continuous improvement and innovation. When
mentioned about BPM and SOP, in the book “Business Processes and Standard Operating
Procedures: Two Coins with Similar Sides”, Peinel and Rose (2017) stress that business
processes and standard operating procedures are inseparable. In practice, the SOP-based
approach is one of the most suitable and indispensable instruments obviously during the BPM
implementation. So, what is SOP?
EPA (2007) and Peinel and Rose (2017) agree that the SOP can be defined as a set of written
instructions in which routines or repetitive activities are detailed and followed by relevant
individuals so that business processes can be conducted. Additionally, Peinel and Rose (2017)
emphasize that SOP serves as blueprints for the business processes (in terms of workflows), to
translate requirements, operation standards, assignment, and allocation of resources into
executable activities to accomplish business objectives under internal control. According to
Environmental Protection Agency (EPA, 2007) sometimes SOP may be called protocols,
checklist, instructions, worksheets, and laboratory operating procedures depending on the
business’s natures or purposes. For this paper, hereafter, the term “SOP”/”SOPs” will be used
to replace procedure(s), operation procedure(s), standard procedure(s), or standard operating
procedure(s).
In a posting related to ISO 9001:2015, Standard Stores claims that the number of processes can
determine the number of procedures; meaning that a procedure may be created for each process
with detailed work instructions for each task. While a business process is a set of activities that
transform resources used as inputs to outputs to achieve enterprise objective(s), a procedure is
an approach that describes how to implement a process, and commonly in written.
According to EPA (2007), SOPs are written in concisely and easily understanding forms with
sufficient details based on the processes redesigned. Gough and Hamrell (2009) stress that SOPs
should be clear, true and interact with each other to reflect how the company operates.
Therefore, BPM may be considered as a conceptual framework to achieve the outcomes desired,

6
while SOP with work instructions will perform the necessary activities to accomplish the
business objectives which are defined in BPM.
2.3. Benefits of SOP
According to Perfect Sourcing (2013), there are many benefits for enterprises that establish a
full set of SOPs to implement BPM. However, Environmental Protection Agency (EPA, 2007)
states that only if SOPs written correctly are accessed, understood easily, and followed strictly
by relevant persons, as well as reviewed, controlled, and re-enforced by management,
enterprises can obtain the benefits as Perfect Sourcing (2013) mentioned follows:
i. Consistent results - when SOP is followed strictly every time because it can support
enterprises to perform exactly as instructed even if there is any personnel
replacement. In practice, for instance, McDonald's (the world's largest chain of
quick-service restaurants with 14,155 stores in the USA and 36,899 stores
worldwide, serving tens of millions of customers daily worldwide according to its
official posting4 , corporate report 5and statistic website6), customers can receive the
same products or services and assistance at any store because it has the perfect set
of standards and SOPs for employees to comply with.
ii. Right Quality First time - that means any organization endeavors to deliver to its
customers not only a product but also a quality product. Enterprises are always
requested to comply with SOPs with the expectation that the outputs of the process
must be perfect, any common mistakes or errors must be eliminated. “Right first
time, every time” recommended by iSixSigma 7 has become common for
enterprises, especially for mass companies to reduce the errors or variations that
occurred, to provide their customers with the perfect products or services.
Nowadays, quality control is especially concentrated as a competitive advantage of
the corporation with the SOP system, which is stated and guided in ISO 9001:2015
– Qualitative Management systems.
iii. Better concentration on work – it may imply that with detailed instructions and
accurate directions, employees just rely on SOP as working manuals and spend time
on the tasks only as their responsibilities, and they know exactly how to handle if
any problem or mistake occurred instead of consulting others. So, as compulsory

4
https://www.mcdonalds.com/gb/en-gb/new-sites.html
5
https://corporate.mcdonalds.com/content/dam/gwscorp/investor-relations-content/annual-
reports/McDonald%27s%202017%20Annual%20Report.pdf
6
https://expandedramblings.com/index.php/mcdonalds-statistics/ (updated on 23Jan2017)
7
https://www.isixsigma.com/community/blogs/right-first-time-every-time/

7
 requirements, SOP must be written in a concise and clear format, with accurate
wording for easy understanding for operators to follow and supervisors to control.
iv. Reduced process delay - since SOP presents all tasks based on the clear processes
or chronological orders with interactions among the peers, idle time will be reduced.
Therefore, employees will be proactive to work without instructions or precaution
from their supervisor(s), and operations can be executed continuously and smoothly.
Thanks to this, the enterprise’s productivity can be reviewed and improved.
v. Self-explained methods - for employees, SOP can make the process understood
and followed easily. It will take less time to train employees, even newcomers for
process deployment. For example, with well-written SOPs, new employees can
know how the enterprise is run and what they can do and whom they can contact if
they need supports so that they will be acquainted with the tasks and adapt to a new
environment quickly.
vi. Minimal miscommunication - is one of the most important advantages that SOP
can provide during the implementation of BPM in an organization because of its
standardized and unified format and formal wording. Normally, terms used in the
SOP are defined based on the enterprise’s nature, culture, and technology or system
used (if any), so-called internal glossary, for all operators and supervisors.
Minimized misunderstanding will help instructions and training more efficiently.
vii. Workplace Safety - is one of the most important conditions for enterprises to ensure
that the working environment is safe for employees. SOP not only provides a manual
for machine operation but also states the security and safety rules in the workplace.
Moreover, in many production industries, regulations, or international standards to
control waste are mentioned in SOP to make the working place much better.
In practice, although SOP deployment is not the only best approach to implement BPM
implementation, it has brought much more benefits that have not been mentioned above
such as increasing customers’ experience for advanced products and service in the
globalization era, improving compliance, transparency, and risk management in business,
enforcing competitive advantages and adaptability based on continuous innovation, which
will be discussed in further research.
3. TASK-BASED SOPs FOR RETAILERS
3.1. Why SOP is essential for retailers
“Retail is detail”, a common quotation, has been mentioned in many research documents on the

8
retailing industry because its operations are really complicated. In practice, BPM in retail
concerns various aspects of operations; therefore, implementation is more complex and required
much more detailed, and SOP is the most suitable approach (EPA, 2007).
SOPs are instructions, working methods for tasks to be done to ensure that outcomes are perfect
as the consistent quality standards identified and enterprises‘ objectives in the business
processes, even there are any personnel changes (EPA, 2007). Moreover, EPA (2007)
emphasized that SOP’s roles are to indicate compliance, minimize variations and
miscommunication as well as control frequently by the inspectors with checklists using. Thanks
to SOP compliance, Retailers may reduce work effort, improve productivity or comparability,
increase credibility, and legal defensibility. Additionally, relied on SOP, the activities or tasks
are listed carefully and assigned to the relevant person(s) or department(s) to execute, so that
products or services will be accomplished and delivered to customers with the expected quality.
3.2. Research methodology

In this paper, the Descriptive method was used in two ways: (i) Survey approach (interview and
questionnaire) to examine the frequency, attitudes, beliefs, prejudices, preferences, opinions of
interviewees, who were key persons in big retailers, on how BPM was implemented with SOP
approach; and (ii) Observational approach to view performance of retailers in the business
environment (real-life situation instead of laboratory) and crosscheck the result of survey.

Sample selection is non-probability (non-random) based on subjective judgment; therefore, to

answer research questions and meet research objectives, it may need to be undertaken an in-
depth study for a particular purpose to explore research questions and gain theoretical insights.
The target groups for interviewing through interview protocol are purposive, consisting of
operational employees or key persons directly involving BPM or SOP implementation in the
five biggest retailers in Vietnam (e.g. Coop Mart, Big C, Lotte Mart, Mega Mart, VinMart, also-
called Retailers).

For obtaining valued and reliable information, research protocol, questionnaires, observation
guidelines, and recording sheets or checklists (Powell and Steele, 1996) were well prepared
with a special focus for each group of interviewees to minimize prejudice and subjective as
possible. The research was successfully conducted in 2 years (2015-2017), with 30 interviews
(within 15-20 minutes per interviewee) and 2-weeks-observations per retailer thanks to the kind
cooperation of Retailers’ management. However, confidential assurance and information
protection must be committed by the author under the company’s Code of Conduct, therefore
collected data and documented information related to the business model, business strategy,
9
BPM, SOPs may be published only if Retailers’ top managements allow. The interviewees’
answers will be recorded, analyzed, and summarized as a research database, which will be the
reliable foundation for further recommendation and implication of this paper (IfM - University
of Cambridge, 2016).

The final result of direct observation will be a list of both negative and positive findings and
interviewees’ suggestions (IfM - University of Cambridge, 2016), which can be used to propose
a full set of solutions to improve BPM implementation and SOP performance. By the way,
author will provide a template of SOP that may be suitable and applicable for Retailers.
3.3. Task-based SOP for Retailers – “TRATS” model
3.3.1. Identification of Retail processes based on Key functions
Organizations should have a procedure in place for determining what procedures or processes
need to be documented and SOPs should be written by experts who are knowledgeable and
experienced with retail operations, possess management skills and logical thinking (EPA,
2007). For Retailers, like other organizations, to implement BPM, usable SOPs are essential
and must have sufficient details and clear instructions so that employees with limited experience
or knowledge of the procedure, but with a basic understanding, can perform their daily tasks.
In practice, management of Retailers identifies Key functions and/or sub-function, then breaks
down them into Key tasks and/or Detail tasks. Task Guides are supplementary parts to make
BPM and SOP clear, comprehensible, and easy to follow (Fig. 3)

Fig. 3: Identification of Retail process based on Key functions

Source: Direct Observation result (Author, 2018)
“Retailers add value to products by making the products available to the consumer at the
right place, the right time and the right price” (Tang and Lim, 2008), but in practice, to
fulfill that mission, it is not a simple process. Therefore, identification of retail processes is very
difficult, and then preparation SOP is much more complicated. The identification of processes
and procedures should be based on the Retailer’s functions. Tang and Lim (2008) claim that
the Retailer’s functions commonly comprise five critical functions as follows:
i. Merchandising: including many processing related to selecting suppliers and then
purchasing appropriate products to satisfy customers as well as ensure expected

10
 profitability.
ii. Operations: which is also called store management or sales activities at a store such as
stock maintenance, display, and replenish, sales-support activities and customer service.
iii. Promotion: communicating the retailer’s message to the public as public relations (PR),
promotional programs or events, and other in-store activities for sales support.
iv. Control: which deals with financial aspects of the business, that is, accounting
procedures, employees’ payroll, sales tallies, customer and supplier bills, and auditing.
v. Personnel: which involves employee selection, training, advancement, and welfare.
However, the mentioned functions are not sufficient in practice. With the remarkable
growth of modern trade, Retailers’ functions expand constantly. Two especially vital and
dispensable functions should be added including:
vi. Supports: kinds of non-value-added activities that indirectly contribute to Retailers’
achievements, comprising General Administration, Maintenance or Technician,
Security, IT, and IM (information management which manages and extracts the
database for managerial reporting purposes).
vii. Supply-chain: for Retailers who handle logistics issues by themselves. Nowadays,
Supply-chain not only plays the role to control logistic system including central
warehouses, transportation means, stock maintenance but also cooperate with
Merchandising for outsourcing or importing to diversify the categories for Retailers.
Based on their key functions or sub-functions, the operations process will be identified in terms
of tasks. In the lower level, the operations activities will be stated as detailed tasks which will
be the titles of the relevant SOPs. The diagram below (Fig.4) is a demonstration for the
identification of retail operations processes and SOPs.
The Merchandising process in Fig.4 may be considered as a typical example of Retailers’ goods
procurement and management. Merchandising, one of the key functions of a Retailer, may be
divided into two sub-functions or processes: Supplier management and Quality Assurance from
which SOPs will derive. In this case, there are at least 4 groups of SOPs to be compiled with
specific purposes as follows:
i. Supplier dealing with concerns seeking suitable suppliers, contracting, benefit
negotiating, and store cooperating in pricing and internal marketing.
ii. Administration and Planogram, the procedures do not involve supplier directly, but
strongly support for Merchandisers to deal with suppliers and for stores to push sales up
and increase profits.
iii. Standardization and Strategy procedures focus on the product quality and standards that

11
 Merchandisers use when seeking and contracting with suppliers to ensure that the goods
are provided by suppliers and delivered to customers with good quality.
iv. Supplier Auditing and Assessing procedures are tools to control and assess suppliers
whether they are complying with their commitment or propose them the solution to
improve their products or process to meet Retailers’ requirements before contracts are
renewed.
And each procedure mentioned above will be attached with detailed guidelines as
indispensable portions, that make SOPs clearer and more understandable.

Fig. 4: Identification of Merchandising processes and procedures

Source: Result of research observation (Author, 2018)
3.3.2. Identification of key tasks as operations procedures and work guides
As mentioned above, each key function in retail usually comprises of several sub-functions
which are the foundations for operations processes. After operations processes are identified,
the most important stage in BPM will be process discovery to identify the key processes to
model them in term of diagram with BPMN’s support for SOPs written in the next steps. In this
phase, the inter-relationships in Retailers are also designed for further assignments to perform
the process objectives (Dumas et al, 2012).
In practice, a Retailer’s operations process is made up of many activities which must follow the
chronological orders and may be repeated as a fixed frequency. Any unconformity operational
activities may lead to unexpected outcomes, so SOPs must stipulate the flow of tasks in work
guides to impose the rules on operators to perform strictly; therefore, work guides are
12
indispensable portions of SOPs. Work guides not only make SOPs to be clear and easily
understood but also represent all standards for employees to benchmark while performing their
tasks as well as guide them to handle or identify the relevant person to be consulted or supported
for breakdown cases.
For instance, the procedure of customer’s complaint about breakdown cases in a supermarket
(Fig.5) illustrates briefly the process from customer’s complaint receiving, handling to ending,
in which decisive points and consultants are indicated, while standards and detailed instructions
are presented in written in the next parts.

Fig.5: Procedure to handle customer’s complaint in a Retailer

Source: Direct observation result (Author, 2018)
3.3.3. Identification of operators
Normally, procedures will involve various departments and employees depending on the
Retailer’s structure and system used. While designing BPM and SOP, the prerequisite is to
identify who is responsible for each procedure and task. Identification of PIC (person-in-
charge) is also the basis for a work assignment when implementing the SOP as well as training
for concerned employees.
With the uses of RASCI/ RACI model (Petrakova and Reusch), relevant departments and

13
employees are assigned to take charge in the processes as PIC or Operator (R-Responsible),
Approver or Supervisor (A-Accountable/ Approval), Supporter (S-Supporting), Consultant (C-
Consulting), Information-receiver (I-Informed). However, some procedures do not concern all
responsible departments or persons as mentioned, so SOP must be customized depending on
operation natures, which will be discussed in the next part.
3.3.4. SOP format selection – “TRATS” model
In fact, there is no rule for selection of SOP format; therefore, Retailers create their own formats
which can satisfy their operations requirements with customizations and combinations of
various models and styles. As observations conducted, an SOP format will be recommended
with the basis of operational activities, that covers mostly all the gaps of previous models, so-
called “TRATS” or Task-based SOP (Fig.6)
As emphasized above, a flowchart format used in SOP is a good way to reflect the series of
operation activities and depict the overview of the process in BPMN symbol (Fig.6), which is
the foundation for allocating the resource and contribution for operational activities.
Sometimes, it can be created based on the system or soft-wares used by Retailers such as POS8,
GMS9, SAP ERP10, etc., thus SOP format must be modified as soft-ware supplier’s manuals.
In order to make retailers’ procedures connected and harmonized, or based on unified standards,
the reference to other process(es) or procedure(s) is essential. Moreover, because the language
used in SOP must be understandable and sometimes the terms are very different in various
contexts, the definition or redefinition of the key terms is significant. Last but not least,
requisitions should be mentioned in SOP so that operators can check to ensure everything ready
or request relevant persons or departments to satisfy the requirements before they start the
process.
Before deploying, the Task-based SOPs are reviewed, consulted, and approved by authorities,
and informed to operators and relevant departments (EPA, 2007) as RASCI matrix (Petrakova
and Reusch). In the work guides of Task-based SOP format (Fig.7), “TRATS” stand for:
i. T-Task: detailed tasks or operation activities which are listed in chronological order
or importance level of the operations. For example, checking the mailbox to receive
customers’ complaint is the initial task to handle problems, but it can be done any
time in the process if urgently necessary.

8 POS: Point of Sales or Cash register

9
GMS: Goods management system
10
ERP: is Enterprise resource planning software developed by the German company SAP SE.

14
 ii. R-Responsible: PIC or Operator who directly performs the tasks assigned. In
practice, a written report or checklist is used by Operators to record the process
status and any problem for supervisor(s) to verify, make decisions or propose
solutions to improve the process.
iii. A-Approve: the person in the role of Approver has to verify the process outcomes
or make decisions as well as confirm the output to be completed successfully.
Sometimes, Approver may be authorized to stop or delay the process to be fixed
based on the record of operators about the problems. Some Retailers agreed that
Approval should be divided into two levels, for example, Supervisor verifies the
result before the Manager approves or makes a decision. It may take time, but it can
mitigate mistakes in operations. Moreover, the Approver plays a crucial role to lead
the process and provide solutions for process innovation
iv. T-Time: can be understood as time order, time frame, and frequency to perform
the tasks. It also means that the following tasks can be executed only after the
previous one is finished with a lead time added (if any), while frequency stipulates
the repetition times of a task. For example, in the procedure of frozen stores
controlling, the technician must check the temperature of all stores at least 5 times
a day, before opening time, in defrosting time, before closing time, and at midday
and midnight to ensure that the frozen goods are preserved in standard conditions.
v. S-Standards: mentioned as the expected outcomes in both quality and quantity.
These are the crucial criteria which must be paid special consideration as
competitive advantaged in quality management. Standards sometimes are in
checklist format for operators to understand for execution and supervisors to control
the process and trace errors. Quality assurance (QA) builds up the full set of
standards for products and services for employees to benchmark during their
operating time. For example, pork meat will be received only it satisfies sensory
conditions. Additionally, for the maximum profit obtaining, it must be cut and
packaged optimally as guided to maximize sales and minimize shrinkage.
Once the SOPs are approved for application, it must be informed to relevant departments to
operate, especially training for employees to deploy. Additionally, EPA (2007) claimed that
even the perfect SOPs would fail if they were not followed strictly.
Reviewing and assessing SOPs should be done periodically to find what points are out of date
so that changes could be made to improve not only for SOP but also for BPM. In practice, SOPs
are also changed when Retailers are restructured, or the system is updated so that they are fit to

15
operations.
Historical recording of SOP is one of the effective instruments for managers to manage
documented SOP, which helps them to trace back and what is changed or whether SOP is valid
to prevent the invalid one to be used.

Fig.6: A template of Task-based SOP (TRATS model)

Source: Author’s proposal (2018)

4. CONCLUSION
In order to implement BPM, most of the Retailers have used SOP as an efficient approach in a
severely competitive market with more demands of customers and exceptional growth of
technology. Nowadays, with dramatically high-speed development of modern trade, SOP has
played a very important role to convey the communication of BPM alongside leading
technology knowledge, especially IT to operators, so that they perform their tasks much better.
Through SOP deployment, each employee can be aware of his or her responsibilities in the
processes, improve productivity, and prevent mistakes to produce quality products or services
for customers with the easy-to-understanding guidelines and clear standards.
In the retail industry, SOP serves as self-training materials and operation benchmarks to help
Retailers to improve their service quality as well as achieve maximum effectiveness. Because
Retailer’s operations are very complicated, so SOP must be presented all key tasks particularly

16
and constantly updated to satisfy the changes of processes. Therefore, Task-based SOP
alongside instructions and checklist can assist management and staff to eliminate breakdown
products or services during the business process. With Task-based SOP, the productivity of
staff can be measured and assessed easily based on tasks accomplished and value-added which
are provided to customers.
Even a perfect SOP will fail if they are not fully implemented or complied strictly. However,
how to motivate employees to comply with SOPs is much more important, SOPs do not cover
this issue. Therefore, further research should discuss how SOPs are implemented efficiently
and effectively and how to measure the effectiveness of SOP in retail.

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