Every day, CPG suppliers and retailers are faced with a diverse array of challenges – and opportunities – involving POS data. 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. Take a look at brief snapshots of some of the many solutions that we’ve devised and executed for our clients.
- Market Analysis
- Forecast & Sales Quota Tracking
- Price Point Analytics
- Financial EDW (Enterprise Data Warehouse)
- Ladder Plan
- Coupon Analysis
- Downstream Data Feed
- Targeted Service & Visit Effectiveness
- Out-of-Stock Analysis & Phantom Inventory
- Shrink Analysis
- Category Management
- CPRF (Collaborative, Planning, Forecasting and Replenishment)
- Same Store Sales Analytics
By loading the greatest variety of data in the CPG industry, Velocity enables our clients to track products down to item – both their own and their competitors’. Additionally, clients can use Velocity to monitor pricing by equivalent units and fill in gaps with retailers not supported by Nielsen.
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.
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.
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 can track shipments in stores and at retail to accurately determine how much inventory is being carried in stores, limiting exposure for clearance discounting and returns at the end of a selling season. Velocity also helps suppliers maximize profitability by balancing inventory, reducing both overstocks and out-of-stocks.
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.
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.
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.
For multiple major clients, Velocity delivers weekly POS and inventory data updates directly into their manufacturing forecast systems and analytics platforms. This enables companies to make plans based on demand rather than shipments and to adjust forecasts accordingly. Additionally, clients can use Velocity to proactively track inventory at retailers on a daily basis.
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.
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 was able to track sales and inventories of their product to retailers, enabling the company to determine margins of error and calculate the level of “shrink” due to theft or damaged goods, so it was then able to negotiate that 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.
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.
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.