POPAI RUSSIA AWARDS — SSI RUSSIA
HUGE congratulations to our SSI Russia member “Open Group”! SSI Russia won the first place in “Best project in the field of categorical management” that was nominated for at the POPAI RUSSIA AWARDS in the project of “Collective merchandising in Magnit retail network”
The pilot started in June, 2018. It brought together 10 leading companies of FMCG market, producing goods in six product categories.
To each store a separate merchandiser was assigned, who was responsible for the availability of the product and accuracy of layout throughout the day. This way, problems stemming from specialists from various companies attending a sales point in sequence and making their respective amendments were successfully avoided.
The pilot project resulted in LFL-sales increase to 8%, improved adherence to planogram, by 92%, OOS indicator improvement – less than 5% of goods were out of stock. Joint work results provided the basis for “Effective merchandising” for our client and were instrumental in launching of Alerting OSA system at the retailer’s stores, to accurately measure product availability on shelves.
“For us, searching for ways to optimize internal processes is one of key tasks. Our joint collective merchandising project with SSI Russia OPEN Group was aimed exactly at raising the quality of shelf work and eliminating OOS by addressing the reasons that cause it. But what’s most important, this project will allow the customers of Magnit family of stores buy everything they need. We see the success of the pilot and plan to implement it across our network,” said Constantin Gurov, head of the assortment management technology department at Magnit retail chain.
Dmitry Shikhov, managing partner at SSI Russia: “If we look at the statistics of problems exposed by merchandisers, we would see that 47% of it is attributed to OOS, out of stock. Our concept implied guaranteed maintenance of layout shares for all manufacturers, ensured product availability in store and on shelves, lack of virtual stock. This task was accomplished thanks to close cooperation between the agency and the retailer at the problem recognition stage at sales points by the agency and their systemic solution via the chain’s head office. That’s why our project is unique.”