In the past, floor layouts were relatively constant, and retailers only executed two to three major resets per year with the help of expert field merchandising teams. Paper planograms were all the rage at the time because they were so new.
Needless to say, a lot has changed since then. Retailers now heavily invest in big data tools to optimize and localize assortments, and the art of visual merchandising has evolved significantly. Omnichannel retail, professional shoppers, and e-commerce are all part of the mix, which no one could have predicted fifty years ago. Meanwhile, store layouts and fixtures are much more varied and constantly evolving.
However, a lot of companies still use paper planograms. Store teams must actively engage with merchandising plans to accurately and successfully execute merchandising decisions, bringing top management’s merchandising decisions to life on the shelves. But often, paper planograms work against rather than in favor of that process.
Reasons for declining demand for paper planograms
1. Unable to keep track of planograms
There is a lot going on in today’s busy, large-scale retail environments, and the demands on store employees are increasing all the time. Planograms are prone to getting lost in the shuffle. If they are posted on the company intranet or sent via email, they may go unread or become buried in inboxes or lengthy email threads. Sending new versions or updates can cause confusion, and as a result, associates may end up working from outdated documents. What happens when incorrect planograms are printed and used? In such cases, either the store manager or the category partner may be required to deal with the fallout, which may harm the relationship between store managers, suppliers, or category partners.
2. Difficulty in reading the planogram
To be able to place the goods correctly according to the planogram, the store manager must correctly read the planogram, understand the type, size, and other product specifications, as well as identify the equipment where the goods are laid out. A well-designed planogram will indicate the location on the shelf of each product item (or SKU), display type, number of facings, and so on.
Planograms that appear clear and self-explanatory when designed by category managers are frequently far from it when it comes time to use them. They may be difficult to read when printed in black and white if they were designed in color. Schematics may be too small to see and comprehend. Alternatively, they may require in-store associates to cross-refer other documents or instructions, making the entire process slow and inefficient. The smallest error in reading the store planogram will result in a layout error. The merchandiser, category manager, marketer, and planogrammer’s previous work may have been a waste of time and resources. It would also be difficult to forecast layout outcomes and analyze sales.
3. Miscommunication between teams
Paper planograms are a one-way communication from headquarters to store teams. Store employees are unable to ask questions, obtain clarification, or report problems. They don’t have time to wait for email and phone responses. This means that if there is a mismatch between the size of the shelf in the planogram and the size of the actual shelf in the store, a store associate may either leave some products in the stock room or pile them all onto the shelf, causing prices and signage to be out of alignment. It’s difficult to say which is worse. Failure to centrally store and manage such information means that all cooperating teams will work without a shared, realistic view of each store, resulting in miscommunication and poor merchandising strategies.
The Solution — Cloud-based planograms!
There is no reason for retailers to remain stuck in the paper planogram era. Cloud-based planograms provide store teams with interactive digital planograms that are accessible via multiple devices, providing them with the clarity and up-to-date information they need to accurately set shelves on the sales floor. Retailers are investing heavily in data analytics in order to localize store assortments and promotions. It doesn’t go to waste with merchandising cloud. Store teams only see the plan for their specific location, which is filled with the appropriate product assortment, fixtures, and visual merchandising guidelines. And because the plan is entirely digital and cloud-based, teams are always viewing and working from the most recent version. When any changes are made, teams are notified.
In terms of scalability, availability, and feature updates, these web-based planograms offer numerous advantages. Your planograms are securely shared with the entire company the moment they are created, allowing your team to work quickly and efficiently. A planogram is created by a designer and saved to the cloud. It is immediately available to the company’s other designers, salespeople, and merchandisers. Everyone is looking at, editing, and ordering data from the same source. Planogramming is no longer a bottleneck, but rather a tool for increased profitability.
The Changing Phase of Planograms!
Planogramming has evolved quickly over the years. Outsourcing planograming needs to companies that provide planogram services is the latest trend in planograming. Leading companies are already seeing the advantages of outsourcing planogram creation because it allows them to produce planograms quickly while freeing up their employees to work on more strategic, higher-level analytical tasks.
It’s time for retailers to move away from the traditional paper planogram towards a modern, dynamic mobile-ready solution!
