Collaboration through Data Analytics
RSi and Family Dollar have been partners since 2013, with over 60 CPGs invested in the collaborative program, working jointly to develop a best-in-class collaborative business intelligence program. This program provides one version of the truth for Family Dollar and its suppliers to strengthen relationships, work collaboratively toward measurable business goals, utilize scorecards to measure the overall health of the business and focus on the highest ROI activities.
Included in this program are near real-time store level inventory, point-of-sales (POS) data at the store/item level, as well as category data. This granularity provides suppliers with greater visibility into consumer demand, enabling increased collaboration with Family Dollar and provides consumers with the highest service levels.
Retail Solutions automates data integration, attribution and reports, cleanses and validates the data, and then helps suppliers focus on collaborative business processes that will drive the most value. RSi and Family Dollar continue to collaborate on a daily basis to identify and implement new data elements to grow and elevate the program’s success.
Family Dollar encourages suppliers to explore this program and participate. Subscription and activation take only a few weeks, and do not require lengthy IT projects. The POS and store-level inventory data are made available through a Retail Data Management solution that provides a robust data warehouse and easy-to-use tools for suppliers to access and analyze the data by product, by day and by store. Supplier data is cleansed and validated so that the data format is standardized and raw POS data is transformed into actionable information for your business process.
Suppliers have access to both training and expert consultants to help interpret the data and leverage reports for optimal results.
With enhanced data granularity and daily updates, suppliers can:
- Optimize Micro-Assortment : Collect supplier insights to add and remove items in distribution by store cluster based on geo-demographic attributes to improve shelf and inventory efficiency.
- Perform Promotion Analysis: Analyze promotion performance by store cluster, price point and product mix to improve promotional performance by identifying lost sales opportunities.
- Fine Tune Promotion Forecasting and Allocation: Offer direct access to provide suppliers with the vehicle to impact store-item level forecast to address lost sales opportunities found in the promotional analysis.
- Optimize Inventory: Identify stores, items with high inventory based on freshness, case packs and replenishment that lead to high carrying costs, high markdown costs.
- Enhance New Product Introductions: Globally providing to store operators reporting to improve new item launches by ensuring product is received, scanning where authorized.
- Identify Distribution Voids: Delivering exception reporting directly to stores to identify top items that are authorized in store but not selling due to systemic replenishment issues, phantom inventory, etc.
We work hard developing a best-in-class program that can transform data into insights, actions and ultimately add immediate tangible value to both Family Dollar and its suppliers. RSi and Family Dollar continue to collaborate on customized uses cases which resonate with merchants and provide meaningful ROI.
Example Program Successes:
- In-Stocks: This supplier readily identified stores with declining retail sales and in-stocks, as instock levels returned they received $63k increase in POS.
- Promotion Management: Another supplier had $81k increase in POS when they quickly pushed additional inventory to stores leading up to a promotion to ensure newly forecasted presentation minimums.
- Forecasting: While collaborating with Family Dollar on Promotional Forecasts, this supplier was able to create 38% lift in sales after an increased order occurred as a result of joint analysis.
- Whitepaper: Family Dollar – A Collaborative Data Sharing Trailblazer As a continuation of The Data Sharing Gulf Expands webinar, this whitepaper visits the long list of questions that were unable to be answered during the session, best practices, and the future of data sharing as we see it.
- Webinar: Family Dollar Collaborative Sharing Program In this webinar, Jay Becker, Supply Chain Executive for Family Dollar, share details of this program and how it can help your business. Topics covered include: what data will be shared, how information will be used, Family Dollar expectations of suppliers, and the best practice use cases driving the program.