Retailers have long struggled to execute planograms with perfect compliance which is due to several factors.  

A difference between corporate and store data:

Corporate headquarters or the category management team typically work in silos — usually creating multiple planograms of different sizes for store clusters on an estimate of the average fixture sizes. But the local buying models, can lead to improper space allocation within a given store and, in these cases, the store manager seeks the help of store work force to make arbitrary decisions regarding optimal space allocation. This directly affects the compliance.

Lack of partner collaboration:

Planogram templates are created by the category management team single-handedly, without giving the stores a chance to provide feedback or input. Often, there is little opportunity for partners and vendors to participate in store space planning while designing the planogram. This also creates chaos.

Workforce issues lead to shelf-set errors:

Store personnel are often busy with customer queries, and are more likely to make mistakes if they are not trained to use planograms.

Store maintenance challenges:

Even if shelves are perfectly set initially, with all items in proper locations, it can become non-compliant once products are purchased and/or returned.

Unavoidable restocking errors:

Restocking errors occur when a busy store personnel happen to fill an empty facing with any other product other than the one specified by the planogram. This can lead to a perception that an item is out of stock when it reality it is not, leading to lost sales.

How to achieve compliance avoiding the pitfalls?

To accurately measure compliance, it is necessary to frequently check and verify products on shelf. There are many methods that are used to ensure planogram compliance. The easiest being using a simple and cost friendly planogram software along with the one you use for optimal product placement. This method is called two-planogram strategy.

With two-planogram strategy, the sales force can share the current store appearance to the power users or catman team easily. The power users can then make necessary changes in the planogram and share it back to the sales team to implement the corrected planogram in store. This method saves a lot of time and helps you achieve compliance with lesser effort and under the supervision of experts.

Does your organization use any solution to ensure planogram compliance?

Nexgen POG is an easy, efficient, cloud-based planogram which can improve your efficiency using shelf spaces. Nexgen POG can be used along with any space planning solution like JDA Space Planning if you opt for the two-planogram strategy.

Get a free trial now and see how Nexgen POG can help you build planograms and ensure compliance.