Efficient production and management of supply chain: The leading retailer has applied advanced tools of customer analytics for gaining perfection in predicting the future for the business in accordance with the business model. By a correlation in the shopping patterns of customer with their shopping preferences, the retailer has been successful in identifying the customers and their preference. Acting in accordance with this data, the company has been offering promotions and coupons targeting customers of different age group. Between the year 2002 and the year 2010, the sales of Foodstuffs in different categories of product and the revenues ended up growing from 44 billion dollars to 67 billion dollars.
Under these claims and developments, the company has focused itself on the improvement of planograms and aisle layouts with the analysis of market basket. This is a significant tool of advanced analytics for the discovery of hidden affinities among product, and there can be identification of occasion such that shopping trip is driven.
The products of grocery help in providing insight about the use of grocers to design better experiences of customer while meeting the specific needs of several such occasions of shopper. As a significant example, zones of “get in and out” at the supermarket depict drive through and self- service check out facilities at the store. These facilities enable quick billing and pick- up of certain items as per the preferences and convenience of the shoppers. In addition to this, a number of supermarkets have started to stock additional lines of products such as pharmacy and stationary. Further ahead, the company can consider planning for replenishment and management of shelf life. This is in context with in- house departments for deli, bakery, seafood, fresh produce, meat and dairy products. This is because there is no other segment of retail requiring hourly planning of inventory including items such as grocery and food.
A better understanding about the patterns of demand and behaviour of shopping by the use of forecasting and customer analytical tools will be helpful for Foodstuffs in the maintenance of optimized stocks. This involves the achievement of fast turning rates and reduction of waste in perishable items.
Analytical tools are useful in monitoring and analysing signals of demand within the products that include cycles of activity through the day, peak hours for store traffic and sales, local purchasing habits, social trends, holidays, seasonality and local events. The latest solutions of retail analytics can be seen drilling down as per regions as well as SKU level and store details for all of the data and offering actionable support of decision for the leveraging of data.
The analytical and actionable capabilities within the solutions assist all levels in the operation of grocery from associates of the store to the CEO. This is because there is a better understanding about the elasticity of price for each and every product. This price elasticity reacts to the combo offers of the customers, and promotions performed as per the plan set. There are different scenario involved in retail business such as increased spending of shopper for every visit and creation of spot- on campaigns of cross sale. Hence, actionable intelligence will be helpful in building a strong competitive edge ad growing their share in the market.