Reliably and efficiently managing product on shelf is critical to maximizing retail sales. Planogram and visibility compliance is an ongoing challenge for retailers. It typically requires an investment in scanning equipment and store associate training and time to accurately manage product turnover. Yet one Mexican planogram compliance firm, Ago Consultores, has created a solution to make the operation painless and cost effective.
Ago Consultores works with three of Mexico’s largest retailers, Chedraui, Soriana and LaComer, and their solution—auditing shelves with consumer phones using Digimarc's Mobile Software Development Kit (SDK) to scan UPC/EAN barcodes—eliminates the need for retailers to invest in barcode scanning equipment. Ago Consultores performs the scanning work for retailers, sending one-to-two employees to each store for auditing (prior to utilizing Digimarc, Ago Consultores had to use three-to-four employees).
“With our service we audit all the products on shelves and in pegboards in the main store departments, including fast moving consumer goods, packaged perishables, pet food and dairy products,” said Adolfo García, CEO, Ago Consultores. “Registering between 30 and 50 thousand products in the store, doing about 1,100 stores monthly (about 40 Million UPC barcodes).
The company takes scanning data from the stores and provides their clients KPIs regarding their planogram compliance and product availability on shelves, improving sales for its customers. The scanning reports are available to the retailer the day after the audit and the retailers then share data with their suppliers, companies like Unilever, Procter & Gamble, Mondelez (Kraft), Coca-Cola (Femsa), Johnson & Johnson, Kimberly, Herdez and up to 70 other suppliers.
“Using the high-performance detection capabilities of the Digimarc SDK gives our retail customers a complete and timely presence of products on the shelf, allowing them to restock shelves more efficiently and increase sales,” said García. “The SDK is reliable and can even scan damaged or distorted codes.” He added that one retail customer reduced product shortages on shelf by 28 percent, and according to industry standards, for every 3 percent that a shortage is reduced, retail sales grow by 1 percent.”
Looking to the future, García said Ago Consultores is now developing a self-assessment solution for retail customers who want to do the auditing themselves using Digimarc-enabled consumer phones. He also sees using Digimarc technology as a way to help future-proof his business for a time in the near-future when Digimarc Barcode for packaging is widely adopted by retailers and consumer packaged goods companies.
Find out more how Digimarc software powers mobile applications.
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