Salient Store Minder - Salient Management Company€¦ · · 2016-05-09Salient Store Minder ......

©2009 Salient Corporation

Salient Store Minder® MaxPerformance Management for Retail

Inches, Hours, Dollars, People & Occasions

Salient Corporation was founded in 1986. Our only business is helping companies quantify, monitor and improve profits, growth and efficiency. We help decision-makers see faster, easier and more clearly how their own work adds value. We deliv-er never-before-possible visibility, accountability and control.

Salient Corporation is helping companies quantify, monitor and improve profits, growth and efficiency. We help decision-makers see faster, easier and more clearly how their own work adds value. We deliv-er never-before-possible visibility, accountability and control.

Table of Contents

Situational Intelligence 5

How Store Minder MAX works 6

Getting to Individual Value Add 7

Improving Value: Examples 8 Markets 9 Stores 10 Consumers 13 Products & Categories 14 Suppliers/Vendors 17 Hours 18

Salient Store Minder® MaxPerformance Management for Retail

Performance Management

Almost all issues in

resolve to its ultimate constraints: space, time, people, traffic and capital. This book provides several examples of how you can monitor the relationships among transactions and constraints continuously and manage retail value productivity to the inch, to the minute, to the capital dollar, to the SKU, the person and the ring.

Retail

Situational IntelligenceHelping people make the right decisions at the right time.

With Store MinderTM Max, Salient offers a new way to use data to drive value. Instead of “pushing” information to users in the form of pre-determined reports, or forcing them to labor through pre-organized data hierarchies, “MAX” lets each user assemble intelligence on the fly, tailored to his or her personal requirements of the moment, and see it graphically, instantly, in the form that makes the most sense for the purpose. This is “situational intelligence” (SI™).

Store Minder®

6 Tracking Retail Value Performance with Store Minder™ MAX

Speed, simplicity, specificity and scalability... these are the foundations of the Store Minder MAX system. MAX keeps every fact from every source without pre-summary or pre-calculation and delivers the right answers graphically in less than seconds to anyone, anyplace, anytime without any need of expertise, special knowledge or outside support.

For example, here is a graphical drill to find low-margin, low-volume stores and the underperforming products within them.

SPEED In less than a second, plot stores by margins and volumes.

SIMPLICITY Every answer is just a mouse-click away. For example, draw a box around the stores you are concerned about (low-volume, low-margin).

SPECIFICITYThe information is available at every level. Here we drill down to see category performance for one store.

SCALABILITYMAX exploits a variety of techniques to scale up to many billions of transactional details.

HOW STORE MINDER MAX WORKS

Tracking Retail Value Performance with Store Minder™ MAX 7

GETTING TO INDIVIDUAL VALUE ADD

MAX brings all of the facts of retail activity together: from scanners, vendor invoices and other documents of trade, HR and operational records, capital asset history, frequent shopper cards and more. Then MAX organizes these facts according to the many dimensions of your retail operation - people, assets, products, vendors, space (planogram) allocations, contracts, etc.

All of these data streams converge into a statement of actual net value contribution at every level, from every perspective, down to the inch and up to the enterprise.

Individual Value Addper:– Store– Department– Employee– Supplier– Product– Hour– Inch

Advertising & Marketing

Environmental/Causal Data(planogram, pricing, etc.)

Supplier Information

Scanner Data

Consumer Data(Demographic)

Operational Data


On the following pages, you’ll see more examples that show how anyone can use MAX to find exactly the information they need to improve value.

MAX makes sense of the mountains of scanner data, consumer information, planograms, advertising schedules, operational costs and other pieces of information that come into your system every day.

It integrates this information to present executives, managers and others in an accurate up-to-date, interactive view of their value drivers--product volumes, revenues, prices, costs, margins and net profit--within the context and constraints of their responsibilities. The results are available at every level... by company, market, store, department, category, product, vendor, etc., all the way down to the inch of space on the shelf.

“Individual Value Add”

“Performance Indicators”

... or one store.Sales VolumePromoted Percent

Gross Revenue

Net RevenuePrice-to-Consumer

Cost of Goods

Merch. CostsAd CostsOperational Costs

Other CostsOther Costs/Unit

Operating ProfitUnit Operating Profit

Per Cap

Volume Per InchRevenue Per InchMargin Per InchOperating Profit Per Inch

Best Retail Co.

Sales VolumePromoted Percent

Gross Revenue

Net RevenuePrice-to-Consumer

Cost of Goods

Merch. CostsAd CostsOperational Costs

Other CostsOther Costs/Unit

Operating ProfitUnit Op. Profit

Volume Per InchRevenue Per InchMargin Per InchOp. Profit Per Inch

Store

IMPROVING VALUE: EXAMPLES

Entire company


Set expectations on the fly (e.g., stores with margin greater than $10,000).

Another click shows where the store’s margin is/isn’t coming from.

Just double-right-click on the graph to list suburban stores that aren’t meeting margin expectations.

MARKETS

“We have to be able to get new products to market in a hurry, and then just as quickly we have to be able to determine if the product is going to be successful. We have to identify its strongest niches and be able to specifically market it to those areas. The system is a great tool for interactive scorekeeping, and it keeps us from making expensive mistakes.”

Director of ISOasis Foods Company, Hillside, New Jersey


SALES PERFORMANCE

Compare key indicators (e.g. volume, revenue and margin) vs. a year ago or any other time.

STORES

We record every SKU going out of every store. With the Salient system, I can pick 1,600 items that I consider the top movers in their class. Then I can take those items, group them and look at the previous week’s worth of their movement by each individual store. If one store suddenly has zero movement for a product, I can investigate what has happened to the product’s placement in the planogram and correct it.”

Director of Information ServicesLarge Retail Drug Company

MAX integrates sales, planograms, inventory and other information to help improve the value of each store.

Compare across multiple timeframes (this week, four weeks, thirteen weeks and year-to-date).


Which stores pulled our brand of salsa and enchilada sauce from the warehouse?

How many of those stores also pulled our brand of tortilla chips?

For any product, spot inventory shortages by store, and transfer from a nearby store with surplus.

Store with low inventory of English muffins (<2 days)

For any product, spot inventory shortages by store, and transfer from a nearby store with surplus.

Store with low inventory of English muffins (<2 days)

PRIVATE LABELS

Store with more than six days of supply

EFFICIENCY


An important part of maximizing store performance is to contain the costs of supporting it. MAX can track how each individual contributes to cost containment.

Over/Short > = (500) Here’s an example of a survey and drill-down on over/short. Just double-right-click to list the cashiers that don’t meet your expectations (for example, over $500 short).

John DoeSally BrownReese Wilcox

Over/Short

Ove

rtim

e H

ours

Store - Smithtown #5

Store Smithtown #5 \Employee

Monitor overtime per store or employee.

EMPLOYEES

STORES (cont’d)


MAX can integrate consumer information (such as age, ethnicity, gender, etc.) from point - of - sale, loyalty cards and other systems, providing clear insight into demographic sales and profit drivers. For example, optimize product assortments in every store by income, ethnicity, etc.; increase sales volumes through targeted advertising or email campaigns; improve customer satisfaction.

Identify the leading type of consumer for any product.

Here it’s clear that 28-34 year old males are the largest consumers of Best Beer Light 30 Pack Cans.

CONSUMERS

“There are a lot of reports we deal with and (before) only a handful of people could do them, and it would take a day or two. With the Salient system, we can do them right away. It puts more information in the hands of more people.”

AccountantLarge Retail Drug Chain


PRODUCTS & CATEGORIES

Put the right products in the right place at the right time for the right price.

Compare space to volume, revenue and margin. How is the product or vendor performing at the shelf (by facings, cubic foot, square foot, or linear foot)?

SPACE

The ultimate constraint on store performance is space. MAX can help you make the most of every square inch of space in your stores.

“We can evaluate some of our out of stocks and evaluate what’s making us money and what’s not making us money. It’s a good way to analytically drill down to comparing different stores with different planograms.”

CFOLarge Retail Drug Chain


ASSORTMENT

Purge the shelf of slow-moving products(SKU rationalization).

For example, 25% of SKUs in a category brought in less than 2% of the margin this year.

PRICING What do people expect to pay for deodorant?

Double-right-clicking lists deodorants in any range.


PROMOTIONS

Answer the critical questions about your promotions.

Drill in on any date range to view details.

Did I increase the category volume or cannibalize other products?

Tracking Retail Value Performance with Store Minder™ MAX

Did I make more money?

How did the promotion affect traffic and ticket size?

Tickets Revenue/Ticket

Tick

ets

Revenue/Ticket

PRODUCTS & CATEGORIES (cont’d)


Set expectations.Compare vendors by number/percent of products meeting volume, revenue or margin expectations. Set any thresholds you wish (e.g., Revenue greater than $10).

Quickly, print, email, or export the results in nearly any format (XLS, HTML, TXT, etc.)

For any vendor, list products that aren’t meeting your expectations. The whole procedure takes less than five seconds.

MAX tracks volume, revenue, costs, shelf space, margin, vendor contributions, etc. for every vendor to put real leverage, literally, at your fingertips during vendor negotiations.

SUPPLIERS/VENDORS

Integrate vendor contributions and advertising costs to see the value of each vendor.

Tracking Retail Value Performance with Store Minder

Integrate vendor contributions and advertising costs to see the value of each vendor.


Optimize business hours. Look at results for one store or companywide.

Staff up and stock up for the busiest hours of operation.

Here is a review of a business decision to stay open later.

8:00 - 9:00 a.m.9:00 - 10:00 a.m.10:00 - 11:00 a.m.11:00 - 12:00 p.m.12:00 - 1:00 p.m.1:00 - 2:00 p.m.2:00 - 3:00 p.m.3:00 - 4:00 p.m.4:00 - 5:00 p.m.5:00 - 6:00 p.m.6:00 - 7:00 p.m.7:00 - 8:00 p.m.8:00 - 9:00 p.m.9:00 - 10:00 p.m.

Hour 8:00 a.m.

MAX can track per hour performance to help make the most of every minute, hour, day, etc.

HOURS

“One of our five largest vendors called and requested a sales report and I was able to e-mail them the information in about two minutes. They asked for their sales for the past year. They thought it was going to take me a while, but I had all that at my fingertips and sent it to them within a couple of minutes.”

Vice President of Information Services

Large Retail Drug Chain

For More InformationTo discuss Salient Geo can work for you, and to consider a low-cost, quick-start solution for a fast-track answer to your most pressing current issue, call (607) 739-4511, or email the Salient Management Institute at [email protected].

Salient Corporation203 Colonial DriveHorseheads, NY 14845 USA

phone: 607 739 4511 fax: 607 739 4045salient.com

©2008 Salient Corporation

Salient Store Minder - Salient Management Company€¦ · · 2016-05-09Salient Store Minder ......

Documents

Transcript of Salient Store Minder - Salient Management Company€¦ · · 2016-05-09Salient Store Minder ......