Assortment Planning the term Retailers use to describe the processes they use to determine what items in a range of products the would place in clusters or individual stores. These assortments are customized by store to support their understanding of who their customers are in that particular location.
Use demographic and lifestyle data to identify segments of customers in a market.
How does GIS help?
Level 1
Create trade areas/catchment areas around locations to understand existing and potential customers in market.
Data enrichment around stores using segmentaiton and demographics provides attributes for store clustering activities
Level 2
Find correlations between sales performance at the category and item level, and store location centric attributes.
Mapping in competitive locations and analyzing the proximity to stores, create a better understanding of how the competition can impact category and item performance.
Use location attributes and geoenrichment to describe stores that are have simular selling attributes.
Crate mode advanced trade areas based on customer movement, drive times and geographic characteristics
Level 3
Use category sales and CRM/Location data to create category specific trade areas for stores with multiple departments.
Build sales models that incorporate geographic and product data to forecast sales.
Leverage ML and AI to find subtle correlations between large geographic data sets and store performance to feed models with more precise data.
Value Statements
I want to know who the customers that shop my stores are so I can curate the mix of products in my stores to be what they want.
I want to have curated assortments in my stores so I optimize my inventory reducing expenses and improving instocks
I want to have a better balance of inventory in my stores so I can grow sales on my best items.
I want to have adjust the facings on my planograms in my stores to match forecast demand so I can optimize inventory and drive sales.
I want to find the variables around my stores that are driving the correlations I find how my stores are selling items in an assortment.
I want to know how my competition is changing the way items are selling in my stores so I can create more precise forecasts.
I want to understand how my customers are interacting with my brand across all channels; digital and brick and mortar.
I want to better understand under-performing stores and what assortmetn changes might be needed to improve their performance.
Purchasing
What is it?
The process that retailers use to purchase non-retail related items for their own internal use. Office supplies, store consumables- bags, cleaning etc.
How does GIS Help
Level 1
Visualize supplier locations
Calculate shipping time and costs
Level 2
Value Statements
Product Design and Development
What is it?
The processes and tools that retailers use to design, sources, manufacture and bring to market products, typically under their own label.
How does GIS Help
Level 1
Mining social media for emerging trends
Visualize sales by location
Identify areas where trends emerge based on early sales
Identify locations around there globe where they can find the raw materials they need to manufacture the products they want to bring to market.
Level 2
Provide localized data about product trends
Spot emerging trends in the market based on geographic modeling and extrapolation
Level 3
Value Statements
I want to find specific locations that are directional so I can test new products in the stores and have confidence that we will be able to extrapolate those results to other stores and locations.
I want to correlate geographic attributes with category sales so I can better forecast other locations based on that locations alignment with other stores attributes.
I want to find new sources for raw materials so I can design innovative products
Sourcing and Raw Materials
What is it?
As retailers become more vertical, they are enabling more capabilities from manufacturing. Sourcing is one of those capabilities. This describes how retailers find and acquire raw materials they need to manufacture products. This also includes the capabilities of finding vendors and manufacturers to consume materials and build their products.
How does GIS Help
Level 1
Create maps and analysis to help field teams identify regions or areas where they have the best chance to find producers of the specific raw materials they need. Examples- higher altitude growing regions for coffee, Beech forests for wood for furniture, cotton growing regions.
Track the movement of raw materials from field to factory to port to DC to store.
Visualize factory locations and routes from source to manufacturing
Create alerts to notify of disruptions in the supply chain due to external events (Weather)
Level 2
Routing from source to factory to port/FOB destination
Live tracking of materials and product movement
Model costs from specific locations
Forecast and update ETA's for product and raw materials based on disruptions, travel time et.
Level 3
For commodity items (cotton, coffee, specific types of wood) identify and find locations with certain climate, soil, altitude, et al conditions to streamline sourceing activities.
Value Statements
I want to evaluate my raw materials supply chain, so I can manage my costs.
I want to track raw materials from source to production so I can understand how materials might affect my product availability.
I want to understand costs associated with raw materials, based on where they're produced, so I can manage costs and pricing.
I want to understand disruption to my raw materials so I can forecast the impact on my costs and availability
I want to understand where my raw materials are coming from so I can understand what might be driving market disruptions.
I want to understand where raw materials are coming from and what the level of service is based on their origin, so I can forecast deliveries and product availability.
I want to create models for level of service as product moves from source to production so I can understand the impact of location on my product lead times.
Sales Planning
What is it?
The process and tools that create indvidual store forecasts. Forecasts are at the total store, category and individual store level
How does GIS help?
Level 1
Visualization of store sales by region
Analyze and visualize store sales by geographic location, aggregated to the product and item hierarchy
Evaluate store inventory and sales balance from a geographic perspective.
Temporal sales results to identify seasonal selling trends across the country
Create localized seasonal forecasts to plan inventory and seasonal product sets
Level 2
Model sales based on geographic characteristics
Level 3
Incorporate multiple data attributes by location to create more precise and accurate forecasts
Value Statements
Move
Inventory Planning
Key Usage Patterns with GIS
Level 1
Visualize forecast demand my location- see patterns
Visualise inventory in the supply chain
Level 2
Forcast and update real time leadtimes
Preclear inventory through customs- scheduling and routing
Fulfillment
Key Usage Patterns with GIS
Level 1
Find inventory in the enterprise and route to a give location (Home, store etc)
Level 2
Replenishment
Level 1
Calculate most efficient shipping methodology
Cost
Time
Supply chain management
What is it?
Supply chain management refers to the systems, organization, tools, teams and processes that retailers leverage to move products and deliver services across the value chain. This process includes movement from the entire product lifecycle - from sourcing and raw materials, through manufacturing, transportation to port, distribution center, store and customers point of receipt.
Supply chains are one of the key expenses associated with products. Efficiencies in the supply chain operations are critical to contorolling costs and managing pricing and margin.
Supply chain management also refers to capabilities associated with reverse logistics. How can we manage product returns, product recalls accurately and efficiently.
How does GIS help?
Level 1
Visualization of supply chain assets
Provide operational awareness
Level 2
Create updated ETA Forecasts
Track products in route- amount and location
Forecast arrival dates and times
Optimize supply chain - connect stores and Distribution centers
Provide data for pre-clearing customs
Level 3
Subtopic 1
Value Statements
I want see where my products are so I can understand availability at the shelf and online.
I want to understand events that will affect my supply chain so I can mitigate it's impact on my customers and teams
I want to use local demand to create inventory plans that will mitigate out of stocks in my stores and online
I want an accurate forecast of my lead times to get products from supplier to DC to store so that I can create more accurate inventory plans and mitigate out of stocks
I want to be able to see where products are at any time so I can make adjustments to my supply chain to account for volatility in my demand signals and mitigate inventory issues.
Home Delivery/Last Mile
What is it?
How does GIS help?
Level 1
Routing drivers
Simple order prioritization (Store specific)
Destination based order optimization
Manage delivery windows
Simple Asset Tracking - where are my trucks?
Geocoding addresses
Level 2
Territory management
Recommend delivery windows
Manage field workforce
Enterprise order prioritization - Managed fulfillment locations
Advanced asset tracking- updated and forecasted delivery windows
Value Statements
Sell
Pricing
Level 1
Visualize pricing by item across a geography
Where did I price high/low
Location of competition relative to store locations
What stores are in more competitive areas than others?
Correlate pricing with proximity to stores
Level 2
Correlation of sales with pricing by location
Probably not a realistic use case given the capabilities of category killers in teh market place
Presentation (Store Space Management)
Level 1
Find target customers based on demographic and lifestyle attributes
Create trade areas and understand the population with in a trade area
Enrich locations with population/lifestyle data
Level 2
Indoor Mapping- Store hot spot analysis- where is my valuable space
Subtopic 2
Promotion management
Level 1
Sales/Promotion performance visualzation
Where did the promotion work/not work
Sales price visualization
Ad patch visualzation
Level 2
Correlation between ad performance and promotional activity and geography
Where did ads preform well? Are there geographic patterns that can be correlated to ad performance?
Marketing
Create Demand
Enable
Business Intelligence
What is it?
How does GIS help
Level 1
Pesonalization
Segmentation
Target customer identification
Geographic correlation analysis
Level 2
Modeling store performance
Building user facing apps for the organization
Level 3
Advanced modeling and forecasting
Value Statements
Indoor Mapping
No Level
Aggregate and visualize customer movement over time
Locate product in a store, route people to the product
Location based engagement of customers and employees (Geofencing)
Proximity Marketing- Offers based on location
Task management- routing employees in store
Item Management
CRM Management
Level 1
Visualization of CRM- where do my customers live
Connect Customer home/work/shopping locations to develop path to purchase stories
Understand customer density in trade areas
Geocoding addresses
Site Selection
Level 2
Personalized data management
Marketing
Level 1
Creating market area maps with demographic and segmentation data
Campaign effectiveness reporting
Geocoding addresses
Customer relationship management
Level 2
Targeted campaign activities based on customer profiles
Level 3
Tracking mobile interactions- correlate with locations
Market Planing/Site Selection
Level 1
Create a trade area and aggregate exiting data in the area
Find target customers in a market/number of markets
Visualize competitive presence in a market
Level 2
Analyze proprietary data in analysis
Incorporate field data (Photos, broker data)
Correlate store performance with geographic attributes to predict outcomes
Subtopic 1
Level 3
Modeling to forecast sales based on multiple attributes
Real Estate
Level 1
Create market analysis for new stores
Competition locations
Customer Density from CRM
Traffic patterns
Potential Customers- demographic and lifestyle profiles
Create artifacts and analysis to support real estate committee decisions
Lease Management
Manage existing lease arrangements by location
Understand market value for real estate investments.
Level 2
Store Fleet optimization
Model impact of store closings on total market performance
Transfer sales to remaining stores
Cost Savings
Store Closing Criteria
Evaluate store performance by market and location
Collect and manage field data for specific locations
Images of properties
Instore presentations and design elements
Support Segmentation and Customer Analytics
Level 1
Find and visualize geographic patterns in demographic and sociographic data
Create a profile of who 'best customers are' based on CRM, customer home addresses and store location
Find high value customers in a geography to focus marketing and product offerings
Visualize CRM data to understand where customers live, and which stores they visit
Level 2
Correlate attributes and sales/product performance
Use multiple type of data; demographic, sociographic, Tapestery etc to create a dynamic customer profile
Level 3
Incorporate customer data, human movement and population data and sales performance into sales models and forecasts.
Operations
Store Operations
Level 1
Location based activities
Seasonal transitions
Item Locate
Daily Recovery
Facility Maintenance tracking
Compliance
Price Changes
Ad Prep- Signing anc pricing changes
Asset Management
Level 2
Location Based Activities
Recall Management
Find recalled items
Track compliance for returns
Reverse Supply chain
Asset Protection/Loss Prevention
What is it?
Retailers have dedicated organizations that are responsible for protecting the organizations assets. Responsibilities include mitigate shoplifting and employee theft, protecting the safety and security of customer and employees, and protecting the companies physical, digital and financial assets. These teams capabilities include managing incidents, providing protections for team members, investigating incidents, and mitigating risk.
Stages
Forecast
Understand the markets where they do business
How do those markets change over time? How does that impact safety?
Detect
Evaluate
React
Review
How does GIS help?
Level 1
Track and visualize incidents
Theft
High Shrink rates by store- Identify patterns
Level 2
Find patterns in incidents to set risk
Categories incidents based on location and type of incident
Level 3
Forecast activity based on historical patterns and geographic attributes