The global trend for the profitability of supermarkets points to optimization of category management, human resources (cashiers, gondoliers, stockers), supplier management, planogram redesign, demand planning, shrinkage control, warehouse management and optimization of meat cuts to improve yields.
The consumer will continue to be influenced by advertising and in-store merchandising, generating an impact on impulse purchases (up to 20%), and triggering decision making at the point of sale (up to 80% of the purchase), so the retailer must remain dynamic and innovative in generating in-store profitability strategies.
Procurement / Category Management
- • Category management throughout the purchasing, storage and point of the sale process.
- • Inventory replenishment model.
- • Purchase plan and detailed purchase and profitability reports by store.
- • Supplier negotiation model.
- • Centralized product purchasing evaluation to optimize cost.
- • Increase in gross margin by product categorization.
- • Improved inventory balancing.
- • Improvement in conditions negotiated by suppliers linked to service and brand performance.
- • Increased supplier service level.
- • Reduction in lost sales.
Warehouse Management System
- • Warehouse layout, identifying product rotation, categories, incoming and outgoing flow and responsible for each category.
- • Implementation of 5's methodology.
- • Warehouse process planning.
- • Shrinkage control practices based on active supervision.
- • Warehouse layout optimization.
- • Reduction of shrinkage.
- • Increased inventory reliability.
- • Improved order and cleanliness in the warehouse.
- • Reduced warehouse overtime and increased productivity.
- • Demand planning and human resource calculation methodology.
- • Active supervision model.
- • Administrative process models and tools.
- • Increased productivity of cashiers, gondoliers and stock clerks.
- • Optimization of the payroll/sales ratio.
Gondola Display Shelving Profitability
- • Category and product purging.
- • Redesign of planograms per category.
- • Additional profitability strategies for categories outside “shopper”.
- • Merchandiser controls.
- • Maximize shelf capacity and reduce inventory breakage.
- • Improved shelf replenishment effectiveness.
- • Increase in store’s profitability.
Central Warehouse Distribution
- • Delivery route plan.
- • Process for consolidation of transport loads, improving truck utilization percentage.
- • Reduced transportation costs to stores.
- • Improved service level from the central warehouse to stores.
“In addition to the tangible benefits of the project carried out with London Consulting Group, we have achieved improvements in the work practices for the budget, purchasing, marketing, fresh produce and operations areas, in addition to having an organizational structure with a higher focus on results.”
President Auto Mercado