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Exceedra Byte: Building a Perfect Store Strategy


On this week’s episode of Exceedra Byte, Andres Jejen, Exceedra VP of Solutions Engineering, explores how organizations can build a perfect store strategy and the benefits they can get from it.

The idea of the perfect store is like barbeque. Everybody follows their own recipe and has its own ‘secret sauce’ to make it extra special. But it follows the same principles: you want to know how far or close your stores are compared to your set standards, and to understand what factors are affecting your perfect store execution. If you can identify those factors, then you can determine your next best action at the store to improve that level of compliance. Sounds easy, right?

Well, not so much. It turns out that the factors determining compliance can vary greatly, depending on the dynamic of the business, the different channels and formats served, the types of products, the availability of information, etc. One of our customers had as many as 200 different pictures of success to manage. On top of that, standardization can become a challenge: you want to get to a point where your stores are evaluated against a common measurement (which is not easy considering the different strategies you follow), and more importantly, you want to teach your people how to understand what exceptions are and how to react to each one of them.

In Exceedra, aligning with our model of extreme flexibility and configurability to accommodate to your business, we created a model to examine in detail the evolution of the compliance factors that have an impact in the Perfect Store analysis. Each factor is grouped into pillars with a specific weight and compared to an objective, and with that level of ponderation it is easy to determine what is the influence that certain actions will bring into the execution. For example, if your categories’ relevant values are around assortment compliance, distribution, and sales, you can assign a particular weight to each of them, per product, compare your execution objectives vs. the actual data gathered from the store and see which products are underperforming on one or more of these values. With that information, you can focus your teams’ time and energy on activities that are dedicated to address any issues found.

It is crucial to identify the impact factors and opportunities while you are at the store, and not as a post-facto analysis when you do not have much time to react to them and the cost of the lost opportunity can be quite high. Given that, providing insights in real time, and generating actions based on them is where the value of a good Perfect Store program should lie on. But this is not limited only to data that you can observe immediately at the point of sale. External audit information, sell out data, and trend analysis can be integrated into the mix, giving you not only the current execution snapshot but the history that has brought you to this point.

The implementation of a good Perfect Store strategy brings you immediate benefits. You can improve your supply chain by catching disruptions faster, increase your sales and customer relationships, ensure higher product availability and visibility, and improve parts of your trade spend performance by guaranteeing an adequate promotion execution.

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Exceedra Byte is a weekly vlog series where we take complex trade and revenue growth management topics and break them down into byte-sized pieces. Stay tuned every Thursday for new episodes.

Watch the previous episode of Exceedra Byte – Improving Foodservice Data Management


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