This limits the granularity of what to stock, how much to stock and what to price it wasting stock - their too much supplied or too little (out of stock) not to mention type of assortment. Yet planogram generation to determine space and assortment is today planned using “clusters” of retail outlets, using location, size or other arbitrary measures. The relationship between retailers and CPGs is all unpinned by one thing: planogram. In fact, optimal shelf space is a US$984bn1 annual opportunity for suppliers and retailers globally given tight margins, smaller store sizes, increasing competition from online and fast-changing consumers. The race for optimal retail space is the most challenging problem in the global consumer retail industry.
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