”We had a number of test cases with more suppliers, and based on the analyses from TARGIT Decision Suite, we have successfully minimized the number of sales campaigns while selling more items from the shelves at the same time. And we did that just by exploiting the knowledge supplied from our data source. This is very powerful for us since it is often the margins that ensure a healthy profit margin for the grocer on each item. Even if a range of BI tools could supply the same sort of insight, we are very satisfied with choosing TARGIT,” says Anne Fivelsdal, analysis and space management manager in Dagrofa.
Dagrofa introduced a number of KPIs (key performance indicators) which measures the items pricing level, the supplier, the in-store placement, the grocery category role and the execution of sales campaigns.
Dagrofa collects daily sales data from the chain of stores, and many reports are being auto generated from TARGIT to be distributed to the management via e-mail, which makes it easy to follow up on the latest figures.
Primarily it is the red sales figures that cause the analyses to end up in actual game plans, and where Dagrofa and the chains work together with the suppliers make a close evaluation of the source of the problems.
TARGIT analyses used for sparring
”First of all, we all use the same tools in the same ”cockpit” with the result that we avoid many of the classical discussions related to which data are the correct ones. Now, we only have one set of updated data. It is also a very powerful tool for us when we, together with the suppliers, analyze why a given item for instance does not sell as well as we expected, or why a supplier assists in dragging the gross profit in the wrong direction. We do not use the TARGIT analyses to criticize our suppliers; on the other hand, we aim at using the figures in order to become a better sparring partner for our suppliers. It makes it far easier for us to see where we can optimize,” says Ms. Fivelsdal and states that it simply had to be TARGIT Decision Suite.
She elaborates: ”Actually, we did not look at a lot of other solutions. We were absolutely sure that we wanted TARGIT since the philosophy of user-friendliness, easy access via a web client and the few clicks strategy behind the solution fits our users perfectly because they do not necessarily have many years of experience with Business Intelligence.”
Dagrofa has more than 200 suppliers connected to the TARGIT solution and every user has access to the collected data from the convenience stores they supply. Dagrofa, the chain offices and a range of other stores have access to the solution as well, and in this way, Dagrofa has created a very standard environment for knowledge sharing of sales data from the retail business, which has brought along many advantages.