Webinar: End-to-end merchandising process. Retailers case studies

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okay good morning everyone we're ready to start and uh we're going to go ahead and uh present you the webinar so the topic is uh for today's webinar and thank you thank you for for your time and the interest in the topic of uh improving the uh shell space profitability and improving the shell space per performance uh your host today are uh my apologies the slides are not are not yet changing uh let me start with the introduction of the host uh myself uh Vladimir bz rabri I'm the head of international growth at leao and Anna yala uh the head of Business Development at EMA good morning Anna hello Vladimir thank you for the introduction

great so let's go ahead and get started um uh before before we jump into the topic of planogramming and efficiency and uh shell space performance I'd like to uh to uh introduce leao the webinar is brought to you by leao uh the business process Automation and optimization uh vendor in retail U as a company just few words on our history our background so that way you have the understanding of what we actually do um for those who are not yet familiar with us so um as as a company we've been around uh since 2014 and uh we're present in the EU we're servicing our retail companies um in Europe in Middle East uh and North and South America in various regions uh we provide also support through our partnership

Network um So currently over 150 companies are using our software on daily basis to efficiently manage inventories perform replenishment orchestrate trade promotions and optimize merchandising to drive more sales revenue to increase customer loyalty to save time and money and in particular today we're going to dedicate our time um and attention to uh the merchandising side of processes in in retail um the core the core of our business is within the inventory optimization promotion management and planogram optimization let me go ahead and uh continue um as I mentioned regionally we're present in we're present globally

um and we're we're working with the majority of retail verticals uh that include convenience stores grocery retail DIY uh electronics supermarkets and health and beauty um and over the course of today's webinar we'll present you the real cases of our customers within some of these categories of retail and we'll give you great examples of how um centralization Automation and standardization of retail uh merchandising processes can help increase Revenue can help drive more sales um and is overall um uh very efficient uh for improving the processes um in today's webinar we're going to uh

take a look at um at several cases uh of um of identifying inefficiencies uh with help of data visualization we'll speak on on uh the two cases of uh grados company um how it was able to um to to improve the layout efficiencies uh based on the uh data Vis visualization we're also going to take a look at how merchandising centralization and endtoend process transparency helps increase operational speed and decision making process uh based on the two cases of chudo company and white and dry uh retail company uh we will also share details of a large Merchant iing optimization project that was supported by um by letho uh automation solution

during the growing stage of a large gas and oil retailer uh and a an alcohol uh retailer uh without actually increasing the number of merchandise uh managers while the company was in the and still is in the growing stage um and then afterwards we will take a um closer look at how merchandising tools help optimize assortment and improve turnover based on the case of a retail complex uh of a retail company Agri complex and um we'll also speak on advantages on of using uh merchandising business process um analytics uh based on two two uh real cases of retail companies basket and class um and now we'll start Anna will

start with describing the uh planogram approaches um Anna the floor is yours thank you Vladimir hello everyone yeah so I would like to start with that uh the first area actually where the merchandising solution can help is actually visualizing the problem because ret ERS that don't have any solution for the merchandise and optimization uh they usually do planograms intuitively in some Excel spreadsheets or graph editors so how they usually do they like take an equipment they understand okay here on this equipment here will be the milk category here will be yogurts here will be some s cream so they don't know where exactly each SKU will be placed in what number of faing and uh evidently in such case it's very hard to manage the space and it's almost impossible to understand how each SKU performs uh and is the number of fa

incorrect uh does it occupy the appropriate space uh is the planogram based on the analytics so uh all of these questions are remained unanswered so on the opposite side with having the item based planogram and having possibility to view the history it becomes very obvious what are items I need to be optimal IED having a tool that is based uh that can U help to create the planogram based on the analytics having the coloring according to ABCD analysis uh it gives a clear understanding if the planogram is built correctly so in other words it helps to understand so if the SKU that is placed on the Shelf uh does it have good sales does it have a good margin uh is it in some priority assortment so uh it depends actually on the company's strategy of doing the merchandising process uh so what are the advantages actually of the item based planograms uh

first of all it's very clear and easy communication tool with the stores because people who make the act out they clearly know okay this SKU should be put in this equipment in this number of faces on the second on the third shelf so they have uh very good visibility on how to uh make the actual layout and secondly they have the uh they have the photo of the product so they clearly understand okay uh here this product should be in this shelf secondly it helps in the replenishment process because the system uh it calculates the number of facin in width or in depth and this data can be uploaded to the Earp system and after that it can be used for the replenishment process for calculation the buffer so-called buffer for the merchandising layout and the last but not the least it helps to place the goods on the Shelf not intuitively but based on the data based on the analytics and it's very important not to do it uh just According to some uh logic

or one person but according to the rules of the company uh let's have a look at some case studies so the first uh company we're going to talk about is the company gradus uh yeah thank you Vladimir so it's a liquor story tale chain uh with 70 stores uh 5,000 skes uh they have they are actually over the counter retailer and they have Just One Merchandising management manager who is responsible for the layout um let's have a look what we did with this company uh so the first thing that we uh did after implementation is we uh created the digital uh and item based planogram uh when we created that uh it became very obvious where the problem is so um I think that everyone

recognized uh in this slide they um the planogram that is uh colored according to ABCD analysis so here we can see the uh green category so it's the a products the B category is the yellow products the C category uh red products and D category it's the worst category and it is colored with black color so we evidently see that here is a lot of products with the highlighted with black so a lot of D category um that should actually occupy very little uh very little space on the Shelf uh so the first thing that comes into mind is that uh we should remove the D products from the Shell at least from the second and third shell so the most popular shells and replace them with a products and B products but it's not that simple because uh here are a lot of factors that influence their planogram and the layout first of all it's uh it can be some conditions with the suppliers

secondly it can be some uh layout rules uh it can this uh black skus can play some role in this assortment so we cannot just move D category from the Shelf but at least we need to understand we have the base for analysis and we have have the base for negotiations with the suppliers so uh the category management work on this worked on this planogram and uh in a week we got a little bit different result uh yeah thank you uh what we can see here so he slightly managed uh the uh planogram uh but following the restrictions and uh we already see that uh the result changed so we are evaluating the results according to the following PPI so it's sales from meter sales from facing uh profit from meter and profit from facing so just with uh uh slight changes in the planogram we

already uh got increase in these tpis uh what the category manager did he uh slightly removed uh sorry decreased the uh black category uh he rearranged the layout and uh he uh in a little bit increased the A and B category and uh we measured one more uh time those qpi in three weeks and we got very uh very good results uh on that uh yeah uh so uh the kpis were as follows so the sales from one meter they increased it increased on 44% the sales from one facing increased on 45% and the profit from one meter increased on 52% and the profit from one pH on 53% so there is very huge result on uh on changing their layout and I will emphasize here that uh uh these results are with just slight change in

the assortment so what the company did after that they uh analyzed additional stores uh with those planograms and uh they made some correction there as well and of of course we measured the result and the effect resulted in 5% increase in sales and in 6% increase in profitability so thus we can see how the work of the category manager can in and his control of the planogram execution uh can uh bring very good results and what we have for today is that company uh uh decreased the space for this product category and they put another Goods on the shelf that performs better uh so let's have a case uh let's have a look at the case of our other company uh that is CH the company that's our one of our oldest clients so they actually saw the development of the products and they uh highly participated

in that uh so what they had is what the what are the criterias for this uh retail chain they have 38 stores they have have 50 sounds and skus and they have for 38 stores just three merchandising managers who are responsible for creating the planograms and uh the following uh so what um the main driver for this retailer uh when they were looking for the merchandising solution was that uh they wanted to scale and actually it's one of the main drivers for uh for like 90 or 80% of our customers before they uh want to SC sale they are looking for some solution to optimize and automate their processes uh so regarding this customer what they had uh initially uh they had um situation when uh there were no standards for the whole retail chain so one store was very different from

another store the equipment was different uh the uh store layout was different and of course the planograms was different so people at stores were respons responsible for uh making the layout and one store was uh one store looked differently than another one so they wanted to unify this process they wanted to standardize um the cost for purchasing the equipment they want to wanted to correct the assortment and make the layout according to the demand so they need to see the data and based on this data to build the planogram and uh so this company they actually implemented at the endtoend business process uh and that included uh can you please switch to the next slide thank you uh so uh they made uh unification as I've already mentioned and uh uh they unified and centralized the

merchandising process and it became very clear very transparent and it was managed from the central office so uh uh uh let's go further uh what they made is they uh uh implemented endtoend merchandising process uh what it insists of uh first of all it was creation of planograms so people in the central office they created the planograms uh based on some mutual Logic for the whole company after that uh they uh published this planograms and people at stores uh they made the actual layout according to the planogram after that they made their photo of the layout we call it realr uh and after that they returned the photo back to the central office so they reported that the task is completed and after that the central office after some time they made analysis how efficient the planogram is and in case of this customer uh uh I

would say that uh mobile app played a very good role here and uh the customer so how it how it was made the customer at central office they made the new planograms or create created the new planograms or renewed the old planograms after they published the new planogram it was uh automatically the task went to the uh merchandising manager who made the actual layout uh with the help of the mobile application so in the mobile application he saw the uh planogram and he went to the store and made the actual layout according to the planogram in the mobile app he is able to see how the planogram look should look like with the photos of the products uh how there how many facings there should be in width and in depth uh how on which uh on which shelf the SKU should be placed and uh additionally he could just scan the SKU with the help of the

mobile app because we have a barcode scanner in the mobile application and he clearly understand stand on what shelf to put this SKU so this be this process became really handy for the uh merchandising manager in making the layout and it highly increased the productivity uh one more interesting thing regarding this customer is that uh they initiated the creation of direct communication between the uh merchandise and the central office and it turned out that such an obvious and easy scene uh uh it uh simplified the process and it helped to increase its efficiency so here you can see the uh screen of the mobile application uh by the way it is available both for the Android and iOS uh and on the mobile application uh you can see here the red envelope and uh this small button is actually a very powerful direct communication

Tool uh many unnecessary things and people are actually actually uh removed from this process and it's very easy to communicate between the author so the person who created the planogram and between the planogram exe executor so for example let's imagine the situation when uh the merchandising manager he goes to the store to make the actual layout and uh he he sees that okay this SKU should be here on this shelf but he cannot find this SKU on the warehouse so he says okay this SKU is out of stock so with having this direct communication he can just message to the central office that okay this product is out of stock and the central office has the possibility to react very quickly on that so either they can say okay you can replace this SKU with another one or uh they should additionally make the order for example for this SKU if it's out of stock or he can say okay you can increase the facing for the other SKU so

uh this is a decision should be made centralized by the headquarters uh what would happen if there is no communication direct communication tool merchandising manager um uh in most cases he won't go to or call to the headquarters to ask what he should do with this item and um he will make a decision on his own so for example he will replace this SK with something or in the worst case he will leave this space empty uh so uh this tool became very handy this simple tool became very handy and efficient for this customer so we are really glad that they initiated that and now we have that in our mobile application let's move on to the SEC to the to our next customer uh this is also a liquor story tale chain uh wide and dry and uh this is one this is very interesting Customer because they uh initially um like they implemented two

our Solutions the replenishment solution and inventory optimization and Merchandising optimization and when they uh start implementation they were just 15 stores and uh they made a very clever decision before scaling to reorganize their business processes for the replenishment and for the merchandising and now you can see that they have 150 stores and they continue to scale um uh they have 1,200 SK and they have Just One Merchandising manager who works in the system who is responsible for the planogram creation for the stolly out creation and uh regarding this uh case I would say that um here a big role played the team proactiveness and it became a key factor in the success of the implementation when we started the implementation we understood that there is uh one risk uh for the implementation

because the customer didn't had uh didn't have the data about the product dimensions and product photos but uh the team was very active and was uh very quick so uh during the first stage of implementation they already had uh 30% of the data available in the system and uh the rest of the the 70 uh% of the data uh the rest of 70% of the data were loaded to the system till the end of the implementation and all uh store plans all planograms were created according to the schedule so uh I would emphasize here that the team proactiveness in every project is very important and team proactiveness and involvement is very important in every project uh so and this company was one of the first one to implement their mobile application and to be used this mobile application by the merchandiser uh so let's have a look how it is done uh so they are using mobile

application for the task management uh so when uh it it consists of three stages the first stage is when uh the person of the merchandis he receives the tasks uh so first of all when the planogram is created the new planogram for example is created or the planogram is renewed uh and it is be it is published the task go CL automatically uh for this store to the merchandiser to make the actual layout so it can be done either through the mobile app or through the web and uh sometimes it's done through the web in uh the case of this customer because uh like in some rare cases because the mobile La cannot be used for some stores uh but for the most of the stores it's done through the mobile app and it's very convenient and very handy for the customer uh when when the merchandiser received their planogram uh he goes to uh to the store to make their actual

layout uh so if it's a new planogram he creates the the layout from scratch so he understands what is the number of facing where should the product should be placed and so on if the planogram was changed from the previous one he will see the table of changes which is very convenient so he will clearly see what is needed to add to be add there what is needed to be deleted there uh and he can make this really quickly and uh the third step here is that he makes the actual photo of the planogram of the layout and it it is uploaded and assigned automatically to the planogram uh so uh in some cases in cases of our customer we even uh we um don't allow um merchandisers to upload the photos from the library uh we make it just uh just live photo so he can just make the photo live photo with the help of the mobile application um and uh I would like to

add here that here the psychological Factor also influences the work of the merchandise because he understands that uh he should make the photo of the layout uh in either way he may have some fees or sanctions and uh he will make and it motivates him to make the layout more um more efficiently and with higher quality uh but uh very important thing here uh it's uh to make the control uh can you we please move to the another slide thank you H so and it should be one of the steps in the merchandising management uh how the customer uh does it uh so they have the operations department and this department do some random control of the actual layout uh from time to time so they have a look at

uh they take a look at the stop plan they understand which equipment uh doesn't perform very well and they make their comparison of the planogram and realr so they uh understand okay that might be might there might be something wrong with the layout if this equipment performs not very well well and they they make this comparison and they can understand and give some feedback probably to the merchandiser uh there's very frequent question regarding uh from our customers um regarding if this uh comparison can be made can be made automatically and if this recognition of the planogram can be of the realr can be made automatically and compared with the planogram uh we have a partner for that who can do such uh recognition but at the moment this technology is quite raw uh the system needs some time to be educated on that and uh it's very expensive so we hope

that and actually we are pretty sure that in future this technology will take place and will be very popular but at this stage it's um it's not very reasonable to implement that okay let's move on uh so um and the process uh of uh the process of merchandise and control uh ends with uh The Continuous check of completing completed tasks in the retail chain uh these customers white and dry they do it with the help of the dashboard so on the dashboard they can clearly see uh the stores they can clearly see uh the uh tasks in this store so we can see the columns the diagram in the columns and if we click on one store we will be able to see uh the round diagram colored with different uh different colors that means the task statuses so uh just with one having one look at this uh dashboard it makes it

becomes clear uh how the retail chain is performing in terms of the task completion and uh uh the last thing that uh I would like to say about uh this uh uh about this case is that uh in our projects always we like to make uh we are very focused on the effects and uh we try to measure the initial situation before we go to the project and what uh what is the effect after couple of months after implementation so in case of this customers uh customer we made such comparison and we compared their Data before implementation and couple of months after implementation and we we can see very good result results here so we can see that uh almost all product category they have a very big rise in terms of sales in terms of margin profitability and so on so uh that's how the uh implementation and automation of

the business processes can influence the uh the efficiency of the retail chain uh now I will give the word to Vladimir he will continue with the other cases Vladimir the floor is your thank you Anna thank you very much uh yes and so thank you thank you for the great overview of uh the uh merchandising processes and how they're affecting the actual uh financial performance uh what type of approaches are help helpful such as uh full process transparency full process control um uh and so on there's there there are additional uh additional methods to uh further improve the uh efficiency of the layout and of the merchandising process overall one of such uh uh practices is

the format equipment and I'm going to touch on that point just to describe just to to to to showcase the importance of that approach and how company that are scaling are able to handle the growth and handle it in an extremely efficient way so one of our customers uh a a an liquor liquor uh Store retail chain wind lab that is a part of very large uh alcohol producer group um and has been present in the market for 20 years wellestablished company with over 600 locations of 2,000 of active excuse me assortment was able to um efficiently manage the growth with only two merchandising managers and this is truly an impressive case um well right now there are two merchandising managers but actually when

we were starting the project there was only one and that's why that's what what makes this case particularly impressive so so um one of the common things between this company and and the next company that I'm going to speak about the uh uh Western Oil group uh which is a company with over 500 retail locations uh which is oil and gas uh uh oil and gas retail with many supermarkets uh with up to 2,000 skew uh in in the assortment and four merchandising managers so something that unites this this uh gas and oil and gas retailer with and by the way the oil and gas retail has been rapidly Evol evolving over the the the past years and they're

introducing right now uh and and and are um uh and they have available fresh category yogurts food and non food items uh so they're they're truly supermarkets that you could shop at um and they're they're highly developed and if you take a look at these uh at these their stores you'll see that they're really really modern so what's uniting the the the wind lab and the Western Oil group retail is the approach to efficiency so uh the the secret behind um behind managing uh such a large number of locations is the format planogram management so the format planogram and format equipment is the uh is the equipment that has Sim similarities in how it's

constructed and they they have um they have common grouping for certain locations so just an example uh such grouping can be based on size of the retail location on type Etc which means that for a certain group for example a small or a convenience store group uh there is a common standardized equipment uh that that can be uh changed in the central office once and it's being communicated to all of the locations automatically without extra effort so uh in this uh in this case we're uh uh we're going to take a a a more detailed look at the format equipment so the unification is the secret behind efficient format uh format management um it requires prior

standardization and in case with winlab company we've uh we started gradually uh with the pilot project which required the company to actually standardize all of the equipment um and then introduce the format management um uh the the change that is made once again is automatically communicated and it's done in seconds so can can be communicated to 500 locations at no time which means that the company gets evident advantage of saving time and effort on planogram management and the locations are receiving these not notifications Sim simultaneously which means high speed of change uh in a fast-paced environment um the great thing is that the format management that is present in

leaf leafia merchandising management system allows to track the changes at various levels so so uh if you're using the format management you can see the change directly for each and every individual equipment you can see the change for uh the change and the analytics for the uh for the entire company at the corporate level um so the just few more details on the project the wilb project has started in August 2020 and with gradual uh roll out of this solution we have now onboarded 50% of the uh locations um and the impressive thing there there was only one manager working right now there are two and uh the the team the the the merchandising team is working uh on five launching five new locations at the

time um which means that they take the five locations they standardize all of the equipment inside they standardize the planograms and then on board those locations with such approach the centralization and optimization results are now becoming evident so for these 300 locations um two managers are managing it and they're managing the entire business process from making the changes to adding or excluding items to rotating the assortment and to sending the planograms to the locations and the control that of the execution that Anna was talking about earlier the Western Oil group project has started in 2018 and um at that time the company was at very active growth stage which puts additional pressure on

resources that are already managing the uh planograms at the locations the impressive thing is that we were able to launch the project handle the growth the rapid growth of the company and enable Ultra productivity of the resources without hiring additional merchandising managers so as a result the manual process have uh have uh decreased by 75 % the planogram creation on average takes 3 to 15 minutes and 100% of all of the tasks are under control for each and every location um that was particular for me the most important and uh the most impressive thing now we are going to take a look at um our next customer

um the next company is um more experience than other customers that we have worked with in a way that they have already been trying to implement the item based planogram uh for the past two years before we started the project and this company was very cautious about working with with a vendor and the project in general and uh um the company has made a conscious decision to start working with our merchandising experts and the the the format management has been at the core of their focus few few details on the company it's a a grocery retailer uh they're producing uh the uh the the food producer uh and the retailer so they're focused on selling health groceries um at their 650

locations uh That Vary between one and a half to 5,000 SKS per location at the moment they have two plan andram management managers and one project designer uh with uh a large number of system users they have truly truly implemented and taken on the power of the solution with 10 Regional the directors overseeing the uh merchandising operations two category managers um working in the solution 60 supervisors and 650 merchandisers at the locations using the system on a daily basis and for all of this for all of this large group of um of system users there is a single source of data that is available between the mobile app and the web application single single source that is uh uh that is truly fast

and available in Cloud this is one of the biggest advantages that the all of the changes are communicated rapidly for both the changes in the planogram and for the internal communication as Anna has mentioned so the uh project has started with the goals of um testing demand elasticity on layouts and test a theoretical merchandising approach that was already present in the company the Shelf space optimization and stock levels optimization uh was a key area of focus in increasing trade equipment efficiency was also put at the at the top priorities as well as developing reliable data sources to support the business decisions in merchandising and shelf space distribution as well as a assortment management so the project tasks were identifying the efficient number of SKS per square meter redistributing my apologies

redistributing the shell space according to the demand elasticity configuring the merchandising um and identification of uh slow movers in the stock and U um uh and in the skew groups as well as shelf uh having the Shelf performance data uh so exhibit demo um for all skills um uh being able to actually work with this exhibit demo understand how much is in stock how much is uh how much of of various types um of the stock is available how much is of the stock is represented in cost in p pces uh Etc uh and also correcting the layout rules and Zone allocations in order to improve financial performance for each store so as a result

um um as a result the project has started with uh launching the uh business process uh for this uh for this company and the business process uh looks as follows uh the planogram creat is in the uh back office the central office then it it's communicated to the locations through planogram distribution uh it's been distributed Via mobile app email and and web application then as Anna has explained the execution takes place and the task control and Reporting so this was supported with implementing strict rules strict gu uh guides and strict personal reliabilities as well as Performance Management at every stage of the process um we then continued with uh with decrease of resources that were required for planogram management and um

we've we've uh decreased the planogram cycle um uh Additionally the auto product placement and autof facing were introduced so autof faing is uh which means the number of of facings for each and every product was now based on analytics and the uh financial performance on turnover Etc so it depends on on how the priorities should be set for autofac as well as um stock levels decrease that's something that we started monitoring from from the very beginning and they comprise 23% uh with without actually um uh with um with the sales increase so which translate into tremendous tremendous efficiency increase now we're going going to take a look at

the at the uh transformation that the company uh saw so um as as many companies now don't have access to the efficient tools uh to help them um to help them manage the planograms at item level the Agri complex has used the traditional approach of uh of of block or category planogramming so this uh this actually translated into uh the possibility to to have a very very granular look at each and every item at each and every shelf uh and further are the things that we have uh discovered so category return um we started with with the um planogram modification and Improvement um and the uh this was this was made uh in two

main categories for canned meat and canned vegetables uh so we were able to Monitor and and see the Improvement in remainder in days uh in planogram correctness and category returns so the layout was changed from horizontal to Vertical the number of of facings has been optimized according to sales indicators assortment inconsistencies have been eliminated uh products that were in assortment and were not displayed in the store uh as well as Goods that were on the display but we're not in the assortment so we we've seen a significant Improvement in uh all of these categories um to further uh to further uh highlight the results the residuals uh in days were

significantly uh shortened uh for caned meat uh by 6.2 days veggies by 19 days um and uh further we have um uh check the uh correctness we were able to see that the correctness for a category and the correctness for a BNC category at these two locations M 105 and ms1000 has uh also improved significantly um and the um the um further improvements that we've seen are the uh sales Returns the layout um area for each skew on the Shelf um is now corresponding to the sales levels which means there is there is direct connection and it's dynamically recalculated a return

indicators allows to solve also the Zone allocation problem with the goal of improving financial performance uh of the retail location the these indicators reflect the efficiency of category allocation in uh comparison to other categories and help uh calculate the excessive or deficient shelf phas and redistributed among other categories um so we've seen improvements both in can and in can meat and caned veggies at both both locations um so these are these are good indicators and the company was very happy with the result now I'm getting back to Anna yeah thank you L for such a brilliant overview even though even though I know all these cases in details it's always interesting to to listen

about them thank you uh so the next two cases we are going to talk about uh where the retail companies that with the help of the analytics they improveed their performance and deficiency so the first companies uh the first company is grocery retail chain basket uh they are very they are rather small but they are very modern and Progressive they have 11 stores and they have uh 5,000 Skuse of active assortment and uh in the case of this retailer they used item interactive item based planogram uh that allowed them to control first of all the rotation of the assortment with the help of the analytics so they clearly saw uh and actually they clearly see uh what new items were introduced to the assortment and what items were deleted from the assortment and they can quickly react on the assortment change so uh starting from the uh creating the updating the

planogram and making the actual out secondly it was they measured and control of which part of the Shelf was occupied or wasn't occupied and to measure the percentage uh on the third uh they uh measure and they manage the percentage of the Shelf uh that should belong to some uh some certain brand I will explain here so for example if uh Coca-Cola they ask okay our products they should occupy 55% of the shelf uh of the equipment of the Shelf uh it's very easy to do that with the help of the tool but with the help of like Excel or some other tools it's it's rather rather not very not very convenient and uh the last but not the least today with the help of the merchandise and optimization tool they have the data for replenishment so as I mentioned they are creating the uh they calculating the number of facin and they

upload this information and use it for replenishment process uh so actually the majority of these kpis they became the kpis for the merchandisers and later on we are going to uh look uh a couple of reports that are used by this company and now we will have a look at the other uh client that use our analytics a lot um it's a company uh class and they are Supermarket retail chain uh they have H certain supermarkets F of which are supermarkets with very large like they are they in fact like entertainment spaces uh on the daily basis they have around 100,000 families uh that are show that are served in their retail chain and they have the assortment of 90,000 skus so they are very very big supermarkets uh so in case of this

company uh they uh not just implemented the software but they reorganized the whole business process and in their case they did a very interesting thing they um didn't go to the pilot when they uh made it for some for example limited number of skus and limited number of stores but they decided to reorganize the uh whole business process in first five stores and after that to go to the next stage so what they did they reorganized the whole merchandising process they set up a new uh end to end merchandising process in five stores and after that they move to the second step and uh so regarding the analytics uh let's move on um usually in our system it uh it is divided into like two main like I would say blocks or directions the first one is analytics uh some visual analytics uh it uh it's about some diagrams uh coloring

highlights and so on and the second part is table analytics and this is analytics in the form of different Excel uh reports that can be downloaded and can be analyzed uh by the company so these two companies they actually used uh both blocks of analytics and uh we will have a look at in more details how they did it and what kind of reports they used um so uh the first uh the first one uh is analytics about the stop plan uh in the slide you can see the screenshot of our tool and you can see the admin panel you can see the table report and you can see the stop plan so in case of the customer basket so this stop plan uh was uploaded and the equipment uh in on this stop plan it is colored by different colors as you can see here I think that everyone

recognize here the ABCD analysis and uh it's very important while creating the stop plan and while working on the stop plan to base uh to make decisions based on the analytics so uh with such coloring according to ABCD it becomes very clear which equipment need to be improved uh where it should be shifted uh where the advertising area should be put and so a lot of decisions both strategic decision and some tactic decisions they can be made based on this analytics for the Stop plan uh for example uh decisions such as opening the new store making some renovation making some equipment shift uh make an introduction of the new assortment and so on uh with uh making this uh stop plan visual store plan uh it's very uh uh where interactive stop plan it's uh very important to make decisions about

equipment uh not only like trading equipment uh where the goods are situated but also some different equipment like share desks like some uh uh stance and so on and this all of these uh um decisions they should be made according to some logic and to uh to manage this logic it's need we need to have a look at the numbers okay let's go further uh this is one more um uh this is one more example how the ABCD uh analysis on the equipment on the the stop plan can look like and uh the next one I will tell about the uh bubble plan so it's uh there uh it was actually invented and used by by our customer class um yeah

let's okay thank you uh so uh in case of this customer uh class or supermarkets uh they have very interesting uh process of um uh creating and approving the bubble plan so what they did they have like two uh two direction so they have their they have people who are responsible for approving their uh equipment and uh the equipment placement on the store plan and the second uh uh department they are responsible actually for planograms creation what they do they create two versions of the uh bubble plan so the first department they make their uh placement of the equipment on the store after that they create the the zone for example they placed equipment for the milk products and they highlight that okay this equipment belongs to the milk products after that okay here should be the racks for the coffee coffee and tea and they created The Zone there and highlighted it and

they say okay here should be coffee and tea that's the one part of the process the other part when the equipment was created and placed on the store plan together with the zones uh the uh Department responsible for planograms they drilled to the planogram and they create planogram for each uh for each equipment and um okay so uh let's go let's move on MH uh so the next uh part of the visual reporting that is used by the customer is uh the visual analytics for the assortment management uh so what the customer does does he um uh the data exchange is actually made automatically with the Earp system of the customer and they got information about the new items that were introduced to the assortment so you can see here uh you can see them here they highlighted by the uh red buttons

um red dots actually so this is the new skus that were introduced to the assortment uh the merchandiser or the people in headquarters can clearly see okay this new SKU should be PR present in uh this number of stores he can see the stores where where this SKU should be present and he can drill down to the store and add this SKU to the planogram vice versa he works with the uh skus that are that were deleted from the assortment so you can see them highlighted with the black dots uh and he can drill down to the stop plan drill down to the planogram and delete this Skuse from the planogram just by one button uh okay let's uh go further um and uh additionally to the visual reports uh this two customers they use the table reports in the Excel spreadsheets that can be uploaded from the system so those are the report on the exe execution uh

on the sales from meter uh or the reports about the return uh both sales sales return rate and profit return rate uh the reports about stock balance uh in money and in days um the reports about the product share in width in sales and in profit and the reports about The assortment about in and out assortment uh in and out goods and about the stock balance for example for the products that are not in the assortment anymore but they still they still have balance uh we will not cover of course all of these reports that are used by the customers we will just have a look at couple of them uh so first of uh first one is the report on the return so this is uh a report that allows to see uh what part uh in the uh sales occupies uh in the sales of this equipment occupies one certain product or one category according to uh what part it occupies on

the shelf and uh we actually expanded this report and uh we made it possible uh to compare not only the categories but two products inside one one category as well and the next report uh it's rather clear it's but very important because I think that every retail chain it analyzes the sales for sure and uh for in the merchandising Direction uh it it's important to uh analyze the sales um is the sales per meter so this report shows how each meter of the Shelf performs um thank you Vladimir the floor is yours I think that you you will do some summary of of the webinar of what was discussed today yes thank you very much uh well we tried our best to demonstrate how there are many different ways to achieve impressive results in uh

in merchandising management Improvement in increasing the profitability and efficiency of the space that is available at the retail location and there are really fairly few simple steps that you can take to uh actually start the improvements uh first and foremost is introducing the uh item based um item based planogram secondly you can uh have a a a an endtoend business process where where you can uh um notify the locations about the changes uh Etc and uh improve the control of what is being uh done at the location um uh improve the communication back and forth from the locations um and the feedback uh shorten the feedback loop um uh from from the locations um more leveraging

the uh format of planograms and equipment to to um handle the scale and the growth of the company um optimize the uh facing and assortment uh that uh by leveraging the power of analytics uh and actually leveraging the analytics uh at every stage of the merchandising process uh optimization um and uh use the um the available reports uh to uh fuel the uh proper decision making uh in the company and to have the transparency for everyone to uh to communicate properly and see the actual performance so these are just few of the steps that you can take if you have any questions our team is open to uh communicating open to helping uh you

uh improve um and identify the points for growth um feel free to contact us if any questions came up uh if you have anything you would like to ask right now feel free to uh write your questions to to the chat um other than this I think we are all done and uh we'd like to thank you for the attention we'd like to thank you for the involvement and uh stay uh alert for our next upcoming events uh webinars on our replenishment automation on inventory optimization and Merchandising as well thank you very much and have a good day thank you thank you everyone for attending the webinar yes thank you Anna