A pharmacy retail client with over 9,000 stores was struggling with high costs and waste inherent in their merchandising refresh process. Averaging 18 refreshes annually, the retailer was effectively sending one of every item in a campaign, regardless of the store’s ability to deploy each component, as well as utilizing “special lists” to identify stores with specific attributes that required additional merchandising assets over the basic assortment. As variability in the merchandising mix increased, and store attributes continued to evolve, requiring approximately 300 “special lists” to manage, the system became obviously untenable.
Client Case Study
Store Profiling is Just what the Doctor Ordered for this Pharmacy Retailer
IMS proposed an integrated store profiling solution that would automate the capture, maintenance, and updates of each store’s characteristics. IMS worked with the client to deploy the first round of store surveys before integrating the database into every aspect of the client’s merchandising supply chain.
Store associates are able to update their location’s store profile within their merchandising ordering portal, ensuring each location’s attributes are always up to date.
The client’s store profiling database now holds over 650k data points across all locations. Regardless of a refresh kit’s merchandising mix, the database is able to inform exact production and fulfilment quantities.
Profiling is an efficient way to optimize costs for retailers across the merchandising supply chain. This integrated store profiling solution provides cost reductions across the board: reducing total elements produced, reducing fulfilment labor for total items picked and packed, and reducing associated freight fees for final mile delivery.
Savings potential fluctuates by refresh depending on the merchandising mix for each kit. Where volume of print items is higher, savings are lower, where corrugate and other larger scale display items is higher, cost savings are more significant – sourcing savings range from 7-20% per refresh, fulfilment savings range from 5-11% and freight savings range from 15-25%.