Retail Activity Optimization & Digital Image Recognition
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This document discusses using digital image recognition and retail activity optimization to achieve the perfect store. It begins with defining key performance indicators for the perfect store and challenges of traditional store audits. Digital image recognition can automate store audits by identifying products, reducing data capture time and increasing consistency and accuracy. Retail activity optimization prioritizes store visits and tasks to maximize sales and shelf space utilization. The presentation demonstrates digital image recognition and argues it can increase field team efficiency, effectiveness and actionability to drive sales and store execution excellence.
Retail Activity Optimization & Digital Image Recognition
- 1. Retail Activity Optimization & Digital Image Recognition Achieving the Perfect Store Accurately and Consistently
- 2. ©2016 AFS Technologies, Inc., Proprietary and Confidential Presenters Tiran Avdar VP Customer Success & Strategic Accounts AFS Technologies, RE & DSD Division Tiran.Avdar@afsi.com | t: (404) 386-4212 Andres Jejen Product Management Director – Retail Execution AFS Technologies, RE & DSD Division Andres.jejen@afsi.com | t: (972) 715-4055 Enter image
- 3. ©2016 AFS Technologies, Inc., Proprietary and Confidential Agenda • Retail Activity Optimization • The Perfect Store & RAO • Where are you on the RE Maturity Curve • Closing the loop • How do we get there • Digital Image Recognition • The opportunity & challenges • The ideal scenario • Demo • Benefits • Business scenarios
- 4. The Perfect Store & RAO With the right Promotion In the right Place The right Product And the right Price With limited time at the store, what are our priorities?! Is it really as perfect as it looks?!
- 5. What is the Perfect Store? In order to win at the shelf, it is necessary to flexibly define, capture and analyze in-store standards… To win at the shelf, products must not only be physically present in the correct store, but must also be accompanied by their promotional activities and be displayed correctly… • The Perfect Store strategy defined by your organization must be designed to enforce this corporate message and will be measured and enforced by KPIs • In our experience, Perfect Store KPIs vary considerably by manufacturer, therefore any solution addressing this area must be flexible enough to enable: • Different KPIs – and the capture of the different underlying data requirements • Different target values for the KPIs – which will also vary by each customer segment • Different dashboards and reports displaying the KPIs – which will vary by role
- 6. How Might You Define the Perfect Store? • This is achieved by defining a number of KPI’s, each driving retail execution excellence in line with the corporate strategy. For example: • Distribution rate of 90% for core brands • Shelf share 60% for core brands • One Incremental Location achieved each call cycle • Are all initiatives achieved? • Was merchandising quality achieved e.g. over 90% of the listed products were audited • KPI’s are measured by capturing data in the field through tasks such as: • Distribution • Share of Shelf • Planogram Compliance • Promotion Compliance
- 7. ©2016 AFS Technologies, Inc., Proprietary and Confidential What is Retail Activity Optimization? Retail Activity Optimization (RAO) is quite simply, the optimization of activities carried out by the mobile workforce, with the express objective of Optimizing in-store operations... and increasing efficiency. “As the market matures, the focus is shifting to RAO, which uses advanced analytics to send the field force to the locations that will yield the greatest return on their time and efforts.” Maximize the dollars consumer spend on our products while visiting the store Maximize the $ sales per Sqft of shelf space
- 8. ©2016 AFS Technologies, Inc., Proprietary and Confidential Out of Stock Lowers visibility, resulting in lost sales Product Range Is the store stocking the right range of products Promotion Compliance Heavy spending with limited visibility of compliance. Improving compliance will increase sales. Shelf Position Planogram compliance and positioning are critical to brand health Empowering the Rep Needs to intuitively execute the right strategy for each store “Winning at the shelf” − today, purchase decisions are influenced at the shelf more than ever before. Manufacturers need to act in-store to reinforce the performance of their brands What Should I Be Doing? Control in-store actions through creation of activities including; objectives, distribution and category share checks The Perfect Store What Store should I visit? Control store visits by setting call plans & call schedules In what order? Control in-store actions through creation of activity steps (guided store visit).
- 9. ©2016 AFS Technologies, Inc., Proprietary and Confidential Perfect Store Execution What are you able to do today? • Determine the efficiency and effectiveness of retail activities • KPIs to improve productivity • Structuring shelf with the right products • Task prioritization • Empowering reps with actionable insights
- 10. ©2016 AFS Technologies, Inc., Proprietary and Confidential Retail Execution Maturity Curve Stage 0: exasperation manual operations Stage 2: efficiency improved field efficiency and rep productivity Stage 1: enablement entry-level automation Stage 3: effectiveness closed-loop process improvement Stage 4: excellence retail activity optimization A maturity model for transforming field operations and optimizing retail execution across all global markets Are we doing things Are we doing things right Are we doing the right things Paper based merchandising and orders Deployment of RE Solution: Call Planning Tasks, Surveys Orders Prioritizing store visits by geographic route & Sales value Leverage Digital Image Recognition to improve accuracy & reduce call duration Integrate with Route Optimization solution Leverage syndicated data to address phantom inventory issues Leverage exception based reports to maximize action from all the data collected Increase accountability. Get visibility to reps activity.
- 11. ©2016 AFS Technologies, Inc., Proprietary and Confidential Closing The loop to Win at Retail PROMOTION PLANNING PROMOTION MANAGEMENT FIELD MANAGEMENT FIELD REPS CUSTOMERS Actionable Insights IN-FIELD EXECUTION DISTRIBUTION DSD & VAN SALES POS ORDERS ACCOUNT MANAGEMENT Closing the loop with AFS RE and G2 planning, management, execution, data visualization, exception based management FIELD METRICS ACTIONABLE INSIGHTS displays Integrate with Syndicated data to address Virtual Stock and optimize sales Leverage promotion compliance data from RE to validate Promotion Planning
- 12. ©2016 AFS Technologies, Inc., Proprietary and Confidential out of stocks excess inventory write-off stock credit notes to retailers account losses new account lead time phone calls to office demands on office staff communication costs paper & printing budget mailing expenses data re-key errors after hours admin time field rep turnover DOWN Prioritize Business Objectives UP call coverage efficiency effectiveness completion of tasks promotion compliance distribution percentages sales by product line average order value add-on orders ratio turn-in orders per call new rep productivity customer service gross margin customer profitability Increase call coverage by 25% Define measurable KPIs Decrease out of stock by 30% Increase promotion compliance by 20% Achieve 60% share of shelf of core brands Reduce paper & printing costs by 75% by leveraging RE Sales Folder Reduce overhead costs of expenses by leveraging the expense report module
- 13. ©2016 AFS Technologies, Inc., Proprietary and Confidential How Can We Get There Increase sales team efficiency by focusing on highest impact activity • Decide which stores to visit, and how often, based on sales potential and current share of shelf • Empower sales team to make prompt interventions to address issues • Increase planning effectiveness Increase sales team effectiveness by applying the correct in-store standards • Ensure optimal assortment is maintained appropriate to store segment - with low OOS • Maintain shelf position, shelf share and planogram compliance • Ensure compliance with expensive trade investments • Set targets which drive increase in brand presence and sales Driven by analysis of data gathered in the field • Large amounts of data captured in-store need to be distilled into KPIs which readily allow manual intervention, i.e. actionable insights, or automatically schedule corrective activity Reducing the Admin time will enable add another call per day Leveraging the Activity Steps will optimize the store visit Ability to compare Planogram with Realogram will enable achieve the perfect shelf strategy Leveraging ‘Order Guide’ or ‘Suggested Order’ Exception based reporting Store Score Cards Actionable Insights Integration with Syndicated data
- 14. ©2016 AFS Technologies, Inc., Proprietary and Confidential Sample Customer Success Results Global CP Company • 30% increase in call coverage in first month • increased rate of new product distribution Global Food Company • 25% increase in call coverage • 50% decrease in POSM Waste • 20% increase in Promo Compliance European Magazine Distributor • 50% increase in call coverage from 4 to 6 per day Global Hair care Company • 20% increase in order value in first month Drinks Company • 70% increase in distribution in four months Leading Spirits Company • 40% increase in distribution in three months
- 15. Zooming in… The Store Audit Exercise
- 16. ©2016 AFS Technologies, Inc., Proprietary and Confidential Time Distribution Typical Store Visit High percentage of time used in capturing information Leaving little room for actions to be executed Pre-Call Planning Data capture Store assessment Actions Post Call Review
- 17. ©2016 AFS Technologies, Inc., Proprietary and Confidential Store Audit – Common Challenges • What is a distribution exception? What is a serious exception and what can be over- ridden by a merchandiser/representative? • What is a facing? • What does share of shelf actually mean? • % share of linear shelf or % share of facings? • Measured by sub-category? By brand? By SKU? What products are included – own/competitor? • Share of which shelf? • Main category (which could be in multiple store locations) • Discrete secondary location • How can all of the above be done consistently and accurately? • What about cost effectively for all of the multiple categories in which our company competes? • If the above was available how would the merchandiser make best use of it?
- 18. ©2016 AFS Technologies, Inc., Proprietary and Confidential Merchandising Current Solutions Store Audits Data Collection Targets Monitoring results presentation Target exceptions presentation (x) Actions KPI Evaluation
- 19. ©2016 AFS Technologies, Inc., Proprietary and Confidential Auditing the Shelf – Ideal Scenario Data collection KPIs Targets Exceptions Actions Automated Shelf Audit Digital Image Recognition Metric Definitions Objective Set up Visual Cues Data Visualization Event Triggering Follow-up Planning
- 20. ©2016 AFS Technologies, Inc., Proprietary and Confidential Time Distribution Implementing Image Recognition Pre-Call Planning Data Capture Store Assessment Actions Post Call Review Allowing more time for actions or corrections Data capture time is reduced significantly
- 22. ©2016 AFS Technologies, Inc., Proprietary and Confidential With More Time in Your Hands… • Increase coverage with the same resources • Get actionable results in less time • Drive new opportunities • Plan more effectively based on data
- 23. ©2016 AFS Technologies, Inc., Proprietary and Confidential But It Is Not Only About Time • Consistency: • The camera never lies • Photo will provide the same results always • Accuracy • Reduction of counting errors • Rules are always considered and interpreted the same way • Intelligence • Identification of opportunities from competitors
- 24. ©2016 AFS Technologies, Inc., Proprietary and Confidential The digital image recognition algorithm detects and identifies individual products, down to the SKU level. The system is able to tell from nearly identical products, and to cope with even the smaller variations within the same product. Also, the algorithm learns from time to time. Logo Color histogram Graphic Details Graphic Details System algorithms overcome: How it Works Bad Photo Angles Partial Obstructions Poor Lighting Color Distortions Multiple Facings and Angles
- 25. ©2016 AFS Technologies, Inc., Proprietary and Confidential Summary & Questions • Leverage the RE Planning & Execution capabilities to enable the Perfect Store • Utilize innovative capabilities like Digital Image Recognition to Optimize the Activity in the Store • Use G2 Advanced Analytics for Actionable insights & Management by Exception
- 26. ©2016 AFS Technologies, Inc., Proprietary and Confidential Thank you Q & A Next Session: The Perfect Shelf and Management by Exception: Measuring the Value of the Store Audit Exercise