A large regional grocery chain with almost $2B in revenue was looking for better insights to inform the decisions of their product category managers. They needed better tools to evaluate the performance of their promotions and key value items.
Hypersonix Products Implemented: Pricing AI
Goals: Better data analysis and reporting to inform decisions on promotions, key value items, and vendor relationships to ensure greater margins.
Lack of Actionable Insights – Bridging the Gap in Decision-Making
Data analysis was often a manual process, with managers reviewing spreadsheets that didn’t always provide the data they needed to make quick decisions on products, promotions, and pricing. Category managers lacked reports to help them better understand the impact of promotions and recalibrate their strategy where needed. They needed insights into items that were underperforming so they could better understand brand loyalty and make necessary changes. It was a challenge to analyze and evaluate the performance of their vendors. The lack of actionable data made it difficult for them to negotiate with vendors and suppliers to optimize their product categories and margins.
Custom Reports for Actionable Insights
The Hypersonix Team connected to their data systems, allowing the machine learning and generative AI algorithms to begin their analysis of the data. A variety of custom reports were built to provide the category managers with actionable insights in the areas where they needed better data. What was once a manual and time-consuming process is now streamlined and the business is receiving real-time data analysis and insights that enable them to be more agile and proactive in their pricing, product category selections, and promotions.
Streamlining Decision-Making with Real-Time Data Analysis
Custom reports were built across three main categories to help the managers make more agile decisions. A Promotions Effectiveness Report was created so that category managers can measure the performance of promotions. An Items Analyzer Report was developed to provide an overview of movement and sales for items, helping category managers make more effective decisions about key value items in their categories. Switchability and Loyalty Analysis reporting identifies items that pull down margins and helps the business focus on switchable and more profitable items to maintain and grow margins.
Vendor Scorecard Custom Reports now provide insights into how to best negotiate with suppliers. Data points cover the supplier’s role within a category and the business’ investment, including purchasing and investment numbers. This enables the team to negotiate with vendors from a stronger place, with better insights about the costs involved.
The grocer continues to receive regular, automated reporting via email and the Hypersonix dashboard to help them make effective business decisions to optimize their operations and their profit.