Positive Products: Top 7 Benefits of Automated Shelf Merchandising

Shelf merchandising is as much an art as a science and requires a solid understanding of data as well as an appreciation of the aesthetic. Measuring the effectiveness of merchandising, based on sales volume, turnover and product range, requires high-quality analytics and an open-minded perspective.

This applies to all retailers, from small mom-and-pop grocery stores to large supermarkets. Modern shopkeeping involves huge amounts of data too, which is why every retailer needs to implement an automated intelligent system of shelf merchandising and inventory optimization. The benefits are considerable and include the following:

1. SKUs are effectively managed

Retail businesses usually work with a large quantity of active stock-keeping units (SKUs). To remain effective you need a full up-to-date list of active SKUs compiled in line with the available product range for each sales point.

Intelligent shelf merchandising software includes a built-in synchronization function and assortment data exchange module, as well as smart filters that allow you to automatically create lists of SKUs required for each sales location. This grants you full control over your product range and allows you to truly maximize shelf merchandising.

 2. Planogram templates and formats

If you run a large company with numerous sales locations, the process of planogram development can be a challenge. To save costs on visual merchandising and assortment planning, retailers often use planogram templates. These planograms are distributed across all sales locations of a retail network.

How does this work? You examine your pre-existing shelf merchandising techniques and plan your product assortment using these templates as a guide. These are then automatically distributed and implemented across all sales locations in the retail network.

3. Smart notifications

Automated shelf merchandising software generates smart notifications that are sent to each employee, including specific instructions for each stage of the merchandising process.

Any changes to planograms made by headquarters are thus immediately transferred to all sales locations. Store employees receive understandable instructions on how to make changes to product displays, which has a tremendous impact on corporate efficiency.

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4. Automated product facing

Planograms need to reflect product quantities in real-time. Gathering this data manually and arranging front-facing displays for each dynamic SKU is challenging, inefficient, and essentially impossible to perform effectively.

Intelligent shelf merchandising solutions can compare all available data and arrange product facing in seconds. All you have to do is simply move the goods on your planogram according to the instructions the system provides. This makes your planogram planning easy, quick, and much more effective.

5. Automated product placing

If a store manager wants to place a particular item in a specific location, an automated shelf merchandising system can immediately define its key product features, including product type, size, category, brand, price range, etc. The system can then specify the product’s optimum zone and placement within the store based on this data.

Related: Top 5 Retail Problems that can be solved with Merchandising

When goods are then automatically given an optimal shelf location, employees can invest their time into other areas, including customer relations, sales development, analytics, and strategic planning. Think of the amount of time your team could gain from this!

6. Employee performance tracking

Every business knows intuitively that personnel KPI control is the foundation of success. You need to create a strategy to monitor your KPIs effectively, taking all key metrics and staff targets into account.

Automated shelf merchandising helps your team achieve its KPIs by empowering its members. The automation process not only gives employees more time to focus on different aspects of their business, but it also includes product logging through photographs and data captures. This reduces the time spent on filling in KPI forms considerably.

7. Cloud-based technologies

A successful self-facing shelf-merchandising system is built around the “less is more” principle – the less the cost and effort you spend on goods placement and store space organization, the better. Data cloud software is the key aspect that ensures shelf merchandising systems give you more valuable time for your business.

Cloud-based technology ensures that you act faster and more efficiently, and is also tremendously cost-effective. A modern cloud-based shelf-merchandising system will ensure every staff member at every store location will be a fully integrated part of the shelf-merchandising process and will be able to view all the data required to maximize your business.

Merchandising and Planogram Automation: Tips to increase shelf space profitability