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How to increase RTO by 1.2% in just 1.5 months, focusing on illiquid and top-end products: the experience of Kazakhstan's Anvar retail chain

Many retail chains have difficulty managing sales staff and controlling store shelves. Tasks for stores are transmitted via email, WhatsApp, and phone calls, often duplicated. This leads to congestion and non-fulfillment of orders.  

The FMCG Anwar network solved this problem using the StorexPM digital assistant.

Even at the pilot project stage, this digital solution allowed for a 1.2% increase in RTO due to work with top products and illiquids. 

StorexPM consists of a BI application that monitors processes and a mobile application for sales floor employees, as well as store directors and supervisors. StorexPM analyzes top products on a daily basis, notifies about expiration dates, sales stops, and helps to keep prices up to date.  

More than 30 retail chains in Russia and the CIS use the StorexPM mobile application from InfoVizion. Among the users are companies such as Commander, UMAI GROUP, Monetka, Magnum. With the StorexPM mobile assistant, retail chains increase turnover by about 5%.

Anvar is the largest wholesale and retail chain in the Republic of Kazakhstan (Western Kazakhstan), consisting of 54 stores of various formats. The network's branches are located in Aktobe, Astana, Atyrau, Aktau, Uralsk, and Kyzylorda. The main direction is the trade in food, household goods, as well as products of its own production — meat and semi—finished products, bakery and confectionery, cooking.

The main problems of the network that required attention were not always filled shelves and an unprepared promo. The reason lay in the performance discipline, while analytics, on the contrary, was a strong point, it had long been built using StepData analytical systems, and therefore the control of the level of key KPIs — sales, balances, turnover, out-of-stock, assortment management was organized at a high level. 

They tried to solve the problem of half-empty shelves by setting tasks for store managers to check 20-30 SKUs per day in the store (about 600-1000 pieces per month). But there were no resources to evaluate the completed tasks. The situation was complicated by confusing communication through several channels: messenger chats, email, Bitrix and another mobile application. In order to radically solve the problem, we started testing the StorexPM mobile assistant. 

As part of the pilot project, the StorexPM team and the Anwar retail chain acted in a coordinated and professional manner. As a result, the pilot project was completed in just 2 months. The first stores connected to StorexPM easily adapted to the new task execution system. The performance discipline reached 98-99%, which is a very high indicator. The store staff quickly realized the possibilities of StorexPM and began to offer various options for completing tasks. 

Even at the stage of preparing for the project, the teams selected priority areas of work so that the StorexPM mobile application sends orders to the store only for processes that will bring the greatest result and are of urgent relevance. 

Dashboard with KPIs and performance discipline analysis of the mobile app StorexPM

Thus, based on the data analytics of retail outlets, the following processes were launched:

- Termination of sales of top products (by stores and formats)

The process tracks cases of sales stoppages for top products. Since top products generate 70% of revenue, staff need to respond promptly and return the product to sales. StorexPM sends a task to check the availability of the product on the shelf. 

As a result of the implementation of this process, stores were able to accelerate the resumption of sales by 5 days.

- Display after the absence of the product (OOS)

StorexPM identifies products that have not started selling after they arrive after a period of absence, and sends a task to the store to check the layout. The store performs this task. 

The results of the conducted A/B testing showed that where the tasks were completed, sales started faster.

- Virtual leftovers

StorexPM identifies items with estimated virtual balances and sends a task to the store to check their availability. The store performs this task. After that, the balances are reviewed, replenished, and sales resume. 

Employees noted that in 60% of cases, an adjustment of the balance was required, and only in 18% of cases the goods were in order.

- Products without sales 

This process is designed to track products for which sales have stopped. In such cases, StorexPM sends the task for review. 

After the introduction of StorexPM, every fourth illiquid product began to be sold.

StorexPM works with 40+ processes to improve the operational performance of retail chains. Find out more and choose a process that is relevant to saving the turnover of your retail network.  

Now we can say with confidence that the Anwar retail chain has moved from Whatsapp management to working in a single StorexPM space, where about 200 orders per store are generated daily. Related departments also use StorexPM to communicate effectively with store employees and work on checklists.  

The implementation of STOREXPM ensured the growth of performance discipline (98.25%).

The Anvar retail chain notes that prioritizing work with top products that directly affect turnover and the competent allocation of tasks, no more than 30-60 per day per store, favorably distinguish StorexPM from other applications that were considered at the tool selection stage.  

Even working with priority processes from the basic StorexPM package made it possible to achieve +1.2% of the total. Thus, the payback period of the project was 1 month.

Learn more about other networks that work with the store director's digital assistant by downloading the cases on our website. 

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