News

NYACS 2011 Rochester New York

7/14/2011
NYACS 2011 Rochester New York

Thanks to all who stopped by to give us input, say hello and find out about our software. The number one topic of discussion for us at the show was how our software balances merchandising and profitability. The following excerpt outlines our strategy for this challenge.

Balancing Merchandising and Profitability of Fresh Foods

C-Store operators are in agreement that customers are driving an increase in the variety of fresh foods offered. The limited shelf life of these items is a big change from the extended shelf life typical of c-store product lines. It is forcing store managers to pay close attention to those items to ensure profitability. The diversification is driving innovation in production of the offerings, point of sale displays, customer service and technology to manage it all.

% Shrink vs. Number of Pieces: a Paradigm Shift

The challenge with short shelf life of fresh foods is balancing customer stock and shrink to optimize the customer experience and profitability. Basic POS systems provide forecasts of actual sales but stop short when including targeted shrink by piece. The forecasting tool in Supplyit™ allows you to choose a number of pieces of a product by variety that you want to have left before you must dispose of it. This is a paradigm shift.

If a percentage of waste/shrink is a determining factor in merchandising, then a lower volume store will feel pressure to reduce stock levels below customer appeal levels and a high volume location may be leaving profit on the table.

The Solution

Supplyit™ allows each location to forecast by variety by piece and record the waste. You can evaluate each location not by percentage but by a created merchandising/profitability target of a number of pieces. This ensures customer satisfaction and continued growth. Jera Concepts web hosted Supplyit™ software manages the production and inventory of these items in-store and the order, production and invoicing process in a group with a commissary.