Tool helps to improve the entire supermarket operation with assertive strategies for the best decision making
Technology is changing supermarket operation with the upgrade of smart tools. The proof is supermarket chains’ bet on Business Intelligence (BI) as a strategy to make the operation more profitable.
From this set of practices, managers can learn better the operation’s daily routine and discover opportunities to leverage the performance of stores. In order to learn more about the topic, and how it can be applied to the supermarket context, the APAS Show Blog gathered the main benefits of Business Intelligence to the supermarket industry.
Easily identifying the most sold products in the store and analyze other buying data, is essential to discover opportunities. With adequate BI software, the manager is able to know what the most searched items are in each store, without risks of error when cross checking data. This way, the operation is carried out in an analytical manner, which provides more security for the decision making process.
Business Intelligence has brought to the manager, the end of guesstimating in the operation. Before adopting these practices, store management and buying decisions used to be much focused on the managers’ experience and feeling. Today, with the whole buying process anchored on database, the system is able to monitor inventory and the need of buying for reposition beforehand.
Inventory and Disruptions
One of the many BI’s advantage for the supermarket management is to avoid shelf disruption. With this tool, the inventory management becomes more assertive regarding to the selling of products and their reposition on the shelves. Moreover, BI softwares can map store information and offer data about the number of a certain product in stock, its expiring date, and the need of reposition of each product in the point of sale.
Another benefit of BI related technology, is the perception on the best suppliers for each operation. Those with less delivery delay as well as those who provide the best products, can be identified. Everything works based on a delivery history of each supplier.
How about using practices for reducing losses in stores? The BI anticipates the expiration dates of the stores’ products, and allow planning a stock clearance of all items with a near expiration date. Business Intelligence can also register the shelf life of food, beverages and perishable products, which depends on aspects such as the ingredients used, manufacturing process, hygiene, stocking and packaging. The BI system monitors the shelf life since the goods receipt, which allows to deny an inbound, avoiding the receipt of products with a short life.
Customers’ data collected by the BI tool are transformed into marketing actions. Activating bestselling products, as well as those who sell less, is possible using this information. Moreover, it helps creating campaigns or discontinuing promotions, for instance.