Maximizing Retail Proficiencies: Evaluating and Managing Product Assortment
Effectively Manage and Analyze Product Performance
In this valuable training video, viewers are taken through an insightful exploration of the assortment module, a platform designed to optimize product organization and performance on retail shelves. The ability to effectively manage and analyze product performance is vital for retailers, particularly those dealing with a high volume of SKUs, such as those in the cannabis industry.
- The Assortment Module's main function is to analyze product performance, helping retailers identify high performing products and those that may need to be removed from inventory.
- The 80-20 rule or ‘Pareto Principle’ is a fundamental concept in product management, emphasizing that 20% of stocked SKUs should ideally contribute to 80% of sales.
- The ABCXYZ grading matrix is used in the inventory comparison module to evaluate product performance based on two critical attributes: revenue share and basket penetration.
- The Inventory Product Details module is particularly useful for purchasing managers, helping to ensure popular items remain in stock and aiding in brand negotiations.
- The sophistication and detail of these modules enable retailers to optimize their product organization, ensure customer demand is met, and increase operating efficiency.