Find out how one of the largest retail chains in the world increased revenue by 1.5% by using technology to execute and measure planograms
A large retail chain in Europe, with more than 20 thousand stores in the supermarket and convenience formats, managed to increase its revenue by 1.5% due to better planogram compliance and the increased availability of products on shelves.
This significant result was achieved with the use of a solution from Ailet, one of the largest global companies in the image recognition technology segment to solve execution and auditing problems at POS.
The pilot project involved 500 SKUs from 3 categories in 20 stores. In phase 1, there were already 20 thousand SKUs from 10 categories being audited on the shelves. Now, the work has been extended to 18 categories, totaling 50 thousand SKUs analyzed. In just 6 weeks, the European retailer's stores increased compliance with the planogram from 50% to 90%.
Such a significant advance was possible quickly because Ailet's technology tool – now also available in Brazil – analyzes data about products on the shelves in real time. Absolutely everything on display is checked, based on the number of fronts, through a photographic audit that shows, with 95% accuracy, what is or is not displayed on the shelves. This complete process takes no more than 20 seconds.
With current data from its shelves, this large retail chain in Europe had access to advanced analyzes to gain assertiveness in terms of planogram optimization and store inventory. Furthermore, it improved the teams' operational efficiency by automating a process that was still done manually.
What Ailet provides is a simple process to drive revenue growth based on clear, real-time execution guidelines that store teams know what to do to improve compliance metrics.
More than identifying errors, the Ailet platform gives clear instructions to field teams on how to resolve them, such as: "Move this SKU up two shelves", "Replenish the SKU from the warehouse", "Reorder the SKU one position forward".
Medium and large companies from 25 countries began to be served by Ailet in 2016 and, since then, the company has accumulated success stories among retailers and suppliers.
Coca-Cola Andina, from Chile, is one of the industries using the solution. With the basic module, you have already managed to optimize the audit process in stores and improve the execution of merchandising teams.
In Argentina, Nestlé reduced its audit costs per store by 20% and achieved 97% recognition accuracy for its SKUs. In both cases, audit time was cut by more than half and price monitoring accuracy advanced exponentially.
Here in Brazil, Category Management has not yet advanced to all the stages it can reach and Ailet came to help retail chains and suppliers solve this pain and achieve more revenue and profitability.