How To Improve Planogram Management

Eva improves
planogram
management with
ASTOR solution
EVA is the largest drogerie retailer in Ukraine. They have almost 1000 stores
with 18 thousand employees. These past few years the retailer has been
expanding rapidly, opening 189 new stores in 2019 and 219 in 2020. Business
growing so rapidly requires a leveled approach to management and active
digitalization of internal processes to maintain efficiency. To optimize the
product range management, the retailer added the planogram optimization
solution to their IT-ecosystem in 2020.
Management of the product range with an average of 12 thousand SKUs for

one store is done through category formats. Every format is determined by
unique identifiers – range planogram, geolocation, retail space configuration,
etc.
Creating planograms requires category managers to add corrections and pass
planograms to stores quickly while managing planograms in every store.
Doing this job manually is too labor-intensive and time-consuming. That’s why
the retailer decided to implement the shelf space management solution
RS.Shelfspace.
During the pilot project, the planogram management process was automated
for 50 stores. To make the experiment honest stores of different formats with
experienced personnel well-versed in the company’s business processes.
The test group launch was successful. Based on the results of the test the
retailer decided to apply the new planogram management system to all stores.
Andrey Morozov, the head of the product range

management department at EVA shared the
results of RS.Shelfspace implementation.
Planogram creation
labor reduction
Before the system’s implementation, category managers had to create
planograms for every format manually. This was taking a lot of time. Now
planograms are tied to category formats based on retailer’s standards.
Distribution by formats is based on brand, product category, price, and other

category properties. The system distributes products on shelves using
horizontal and vertical planograms.
When we are preparing to open the new store, we need to create planograms
of a required format. The system takes into account our expansion speed. It
automates many processes, giving our category managers more time to
concentrate on their tasks.
Less errors in planogram

generation
We started using the multistage digital confirmation tool to approve changes in
planograms. Now our stores only receive planograms approved by
department heads. This doesn’t take a lot of time. The interface is
user-friendly, allowing us to compare the state of planograms before and after
changes.
Easier store operations
management
All employees have access to the RS.Shelfspace portal. There they get the
information on tasks, inventory, list of products on every shelf, current and
previous planogram versions.
Changes are uploaded on the portal immediately, employees get notified and
can start enacting them. After completing their tasks they need to submit the
photo proof on the same portal.
We are planning to launch RS.Shelfspace mobile app in the near future. This
way we would be able to control planograms through realograms.
Perspectives
Right now we are applying the system to the entire chain. The most important
goal at the current stage of the project is to improve communications with
personnel. The system has tools to receive feedback from stores – portal and
mobile app. Just like with every new technology, to implement it properly you
need to motivate personnel using it.
After implementing the system we plan to start fine-tuning planogram

management processes. RS.Shelfspace has a tool analyzing planograms by
formats and separate stores. Once we have more data we will have a more
accurate picture. It will be easier to work with SKU and direct customer flow in
the store.
[Astor’s expert opinion]
Increasing the number of stores always leads to format planogram
management, because managing every store’s planogram separately
becomes too expensive. Even with 50-100 small stores in the chain managing
planograms manually is problematic. The solution is either to hire more people
or to automate the process.
RS.Shelfspace inventory clusterization and synchronization make

management flexible and practical. The retailer gains access to planogram
analysis by store formats, inventory clusters, and separate stores. If the
retailer experiences SKU sales losses on the shelf of similar format stores, the
problem can be localized on the level of the specific store. Then the retailer
can fix the problem without changing the planogram for the entire format. For
example, identify the most high-turnover products by ABC and increase the
amount of these products in planograms.
RS.Shelfspace hot and cold zones analysis will show how inventory
rearrangement in stores of the same format can improve sales indicators. The
correct placement of shelves can direct customers from low-turnover products
to high-turnover products, drawing their attention to promos.

How To Improve Planogram Management

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Eva improves

Management of the product range with an average of 12 thousand SKUs for

Andrey Morozov, the head of the product range

Distribution by formats is based on brand, product category, price, and other

Less errors in planogram

After implementing the system we plan to start fine-tuning planogram

RS.Shelfspace inventory clusterization and synchronization make

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