On this journey for a newbie into Retail Execution, we have looked at a few different topics associated to achieving Retail Execution (RE) perfection including Crowdsourcing, Image Recognition, Shopper Psychology and Smart Analytics. Today, we’ll discuss the concept of the “Perfect Store”.
So – what is a perfect store? I can hear my wife’s response being somewhere along the lines of ‘free’…!
Perfect Store is actively being deployed across many RE platforms. In one recent Customer Success customer, their perfect store configuration contains over a hundred different metrics and Key Performance Indicators (KPI’s) per store that they are evaluating and drawing analysis and actions from via the reporting layer that brings all this information together.
Perfection is a moving target, something that is only going to be controlled through an ever-increasing synchronization of functions within the manufacturer, through the supply network and across the retailer. This is the last mile, and to achieve something close to this ideal, companies will need to bring together their processes, teams and systems in ways that go beyond the individual goals of each department.
The bigger picture resides in understanding how integrating data, processes and systems helps deliver the synchronization required to be consistently successful.
In my short exposure to the details and capabilities behind a solid RE platform it has become clear how much technology has played a part in helping to move RE away from labor intensive and potentially inaccurate collection and evaluation of store performance. My personal industry experience which has focused more around both Supply Chain and Trade Promotion Management lends itself to an appreciation of where the traditional silos of working can reduce the potential gains of a company.
This is perhaps where the ideology of perfection to promotion and store execution lies. I have seen huge advancements in the way manufacturers have learnt to collaborate across their teams and share planning information to help drive different processes such as budgeting, Sales & Operations Planning, collaborative planning and, forecasting replenishment. There is such an intrinsic link between Trade Promotion Management and Retail Execution that the same opportunities present themselves in driving processes and data.
Manufacturers continually need to invest huge levels of their overall revenue to help get their product to the consumer, usually managed through a TPM solution. Many of these agreements are based on performance, or guidelines on execution of promotions that end up being tracked and evaluated in RE solutions. The more synchronous these solutions are to the organization, the more likely the right decisions, deals and promotions will be achieved. It’s a win-win – the consumer knows what they want, can purchase it without issue on stock or supply, the retailer makes sales, and the manufacturer sells what they forecast.
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