VELOCITY® Retail Point of Sale (POS) Analytics Software Use Cases
Using VELOCITY®’s retail sales analysis software tools, such as scorecards, dashboards, and spreadsheets, our clients experience improvements in trade promotion execution, forecast accuracy, out-of-stock reduction, sell-thru, profitability, market share, etc.
Every day, CPG suppliers and retailers are faced with a diverse array of challenges – and opportunities – involving POS data analysis. For more than two decades at Retail Velocity, we’ve helped our clients tackle these challenges with creative business strategies that boost the bottom line. How? First, VELOCITY® integrates available retailer POS data feeds, distributor data feeds, and syndicated data provider feeds into VELOCITY®’s Demand Signal Repository (DSR). Then, VELOCITY®’s retail sales analysis tools allow users to generate high-level or detailed item-level and store-level reports.
Take a look at these brief snapshots of some of the many solutions that we’ve devised and executed for our clients.
- Market Share Analysis
- Forecast & Sales Quota Tracking
- Price Point Analytics
- Store-specific Assortments and Planograms
- Sell-thru Reporting
- Promotional P&Ls
- Ladder Plan or Distribution Requirements Plan (DRP)
- Media Spend Analysis
- Downstream Data Feed
- Targeted Service & Visit Effectiveness
- Out-of-Stock Analysis & Phantom Inventory
- Shrink Analysis
- Category Management
- CPFR (Collaborative, Planning, Forecasting and Replenishment)
- Same Store Sales Analytics
Market Share Analysis
VELOCITY® enables our clients to track products down to item – both their own and their competitors’ by connecting to data feeds from over 400 retailers and distributors worldwide. Additionally, clients can use VELOCITY® to monitor pricing by equivalent units down to store and item level. Traditionally, Syndicated Data Providers (SDPs) charge exorbitant fees for store-level data that is provided a week to a month after the sale occurs. VELOCITY® accesses direct POS data from the retailers to give you near real-time item and store level data. When SDPs don't cover certain retailers, there may be sources of direct POS data available that Velocity® can help you manage. By filling in the SDP coverage gaps, you'll have a more robust view of your retail performance in near real-time.
Forecast & Sales Quota Tracking
Our client, a global toy supplier, is using VELOCITY® to manage a multi-department collaboration that determines the company’s demand forecasts and planning and also tracks results, enabling team members to compare actual retail sales against sales quotas, production forecasts and annual sales plans by retailers.
Price Point Analytics
VELOCITY® is enabling our client to analyze categories in order to determine which prices are driving more business. This is particularly valuable during economic downturns as companies can track how demand is occurring based on price point.
Store-specific Assortments and Planograms
The sophistication of VELOCITY® allows our clients to break down store clusters by geography, demographics (population, income, age, ethnicity, etc.), weather conditions, or even by allegiance to a pro or college team in order to pinpoint where sales are strongest and weakest. This allows companies to adjust shelf space and product mix by location based on demand.
Using VELOCITY®, our clients track product flow from shipment through shopper purchase. By providing a factory-to-shelf view, clients can more accurately manage store inventories in order to limit their exposure to markdowns and returns. VELOCITY® also helps suppliers maximize profitability by optimizing inventory when sales surge. Both techniques help suppliers and retailers reduce out-of-stocks (OOS), reduce overstocks, and improve in-stock performance.
Promotional Profit and Loss Analysis
For a major home and beauty supplier, VELOCITY® was used to generate P&Ls by customer and by total market that enabled them to understand costs and profitability of total sales as well as promotions and special deals.
Ladder Plan or Distribution Requirements Plan (DRP)
For our client, a major supplier of cooking grills, VELOCITY® tracked inventory all along the supply chain to the retailers’ stores, enabling the company to monitor products in transit as well as orders, shipments and retail forecasts. This allowed our client to look ahead to future consumption rate and make ordering adjustments, particularly regarding inventory being shipped from overseas with a long lag on delivery time.
Media Spend Analysis
Using VELOCITY®, our client, a supplier of over-the-counter healthcare products, tracked the effectiveness of coupons, booklets and inserts. By drilling down to individual newspaper chains and the markets each served, the company was empowered to see how effective coupon promotions were based on publication and region.
Downstream Data Feed
VELOCITY® integrates daily or weekly POS and retail inventory data with any forecast, ERP, or third-party applications, such as, SAP® DSiM, JD Edwards ERP, Microsoft Dynamics, Teradata®, Tableau®, Qlikview®, SAP Business Objects™, IBM® Cognos, Microsoft Excel, and Microsoft Power BI. This enables our clients to forecast demand more accurately based on shopper consumption rather than solely on shipments.
Targeted Service & Visit Effectiveness
Using VELOCITY®, both a national grocery chain and a global pharmaceuticals supplier, have been able to streamline service visits by merchandisers, allowing them to target the stores that need assistance and pass over ones that do not. By reducing the number of store visits, costs are reduced. VELOCITY® additionally can measure return following a store visit gauge merchandising effectiveness.
Out-of Stock Analysis & Phantom Inventory
To avoid the costly issue of out-of-stocks caused by “phantom inventory,” VELOCITY® helps our clients scan sales and stocking levels of their products in each store to determine if inventory positions are wrong in a retailer’s system. If a system believes more inventory is available than there is in reality, re-order points can be missed and shelves can sit empty. By identifying these issues, VELOCITY® empowers suppliers and retailers to address these system issues and increase sales.
Using VELOCITY®, our client tracks sales and inventories of their product to retailers. This allows them to determine margins of error and calculate the level of “shrink” due to theft or damaged goods. That information enables them to negotiate this variable into their margins with their customers or improve product location in their stores.
Serving in an advisory role as category manager for Wal-Mart and Target, our client – a global toy supplier – is responsible for the reporting of entire categories, including competitors’ products. With VELOCITY®, our client loaded planograms by store and calculated productivity indicators to determine which products generate the most sales per foot, how they are trending and the impact of planogram sizes. This capability allows our client to identify which products are carried at which stores and which ones to add or drop.
CPFR (Collaborative, Planning, Forecasting and Replenishment)
An internal tracking system used by our global CPG client bogged down, so the company turned to VELOCITY® to work out the processes. On a daily basis, our client was able to download product pricing, sales, replenishment and forecasting information into VELOCITY®, which tracked the causes of forecast, replenishment, inventory and sales issues. Alerts were then issued each day informing our customers what issues needed to be fixed. Once the system was optimized, our client enjoyed an 8 percent increase in sales at Wal-Mart.
Same Store Sales Analytics
As Home Depot expanded, our client – a building supplies supplier – used VELOCITY® to prove that its sales were improving because its products were more popular, not just because the retailer was opening more stores. By tracking weekly sales, our client’s numbers were more up-to-date than Home Depot’s own, leading the retailer to use our client as an example for how its other suppliers should be reporting. This capability is valuable for growing retailer chains. It’s also valuable for vendors to show retailers that may be shrinking how their sales are still going strong even though the number of stores may be getting smaller.