By Paul Waldron, Gladson Interactive, special to GMDC
Smooth functioning of category management execution depends on accurate, timely information of all types. Without it, the seamless flow of goods onto mass-market retail shelves runs the risk of being interrupted. That risk is apparently real, since much of the product item dimensions, sizes, descriptions and even UPC/GTIN information driving retailer planograms are often seriously flawed.
According to a recent study on product level data accuracy conducted by Gladson Interactive, 17 percent of all products had severe dimension errors of more than 25 percent.
The study was conducted with product measurements used by retailers and category captains to build planograms. Beginning in October 2005, Consumer Unit Product Data were collected from retailers with more than $250 billion in annual CPG turnover.
Errors in product width have the biggest impact on in-store decisions. Crews and sales agencies resetting the categories are forced to make decisions about which product facings should be cut, expanded or eliminated altogether.
Height errors are the most costly from the reset labor perspective. When the shelf height proposed in the planogram is too short for the actual height of the product, a complete rework of the shelf is necessary or creative product placement is determined, once again, by the reset crew.
Depth measurements most often affect shelf capacity. Errors in product pack estimates cripple computer aided ordering systems and create similar havoc with many operational functions.
As to the cause of this, retailers point out that some suppliers sometimes appear to be estimating or assuming dimensions, using outdated measurement tools or just providing the information late and uncertified. Suppliers respond that retailer requests may come either via internet or hard copy, are not standardized, and may not be easy to comply with.
Discussion Questions: How serious is this problem? How can retailers make sure specifications are accurate? How can suppliers more effectively publicize correct dimensions? Is this issue a supplier responsibility? Is there a communication gap between retailer and supplier? What technology is available to remedy the situation? What services should be used? Will this have an impact on DataSync?