TECHNOLOGY
Ensuring the Right Products at the Right Time Closely managing inventory is crucial to a c-store’s bottom line and combining technology with internal and external data sources can help By Tammy Mastroberte
HAVING THE RIGHT PRODUCTS,
at the right levels, at the right time, and in the right place within a convenience store can make the difference between a profitable category and one that is falling behind in sales. Depending on the size of a c-store chain, this often falls into the hands of the category managers who are in charge of what is stocked, how much and when. And those who are combining technology with both in-house and outside data sources are more likely to see a positive bottom line. “Whether it’s a small retailer or a major chain, there has to be a data system with the pointof-sale (POS) and back office that is extremely proficient, providing data recovery, and it should update regularly with real-time data and results,” said Bill Nolan, partner with Business Accelerator Team, a group of convenience retailing consultants based in Phoenix. Nolan previously worked in operations and marketing for 7-Eleven Inc., and was vice president of marketing for Family Express Corp. in Indiana. It’s up to the category managers to pull this data on a regular basis, so they can see the quantity sold and the gross profit dollar contribution of the categories they manage. In doing so, they can understand exactly what is selling and what is not, Nolan explained. Category managers
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should continually be looking at the A, B and C sellers and flush the C sellers out of the system to eliminate cost and open up space for new items, he advised. “This process is the quiet moneymaker,” he said. “Category managers can make money for a company based on how they price, set promotions and negotiate, but a wise category manager uses data to make sure they have the top-selling items, enough space for them so they don’t run out of stock, and have a broad assortment in the category look good with A and B sellers.” While relying on internal data at the store level and company level is key, smart operators are also mixing this with external data from organizations such as The Nielsen Co. and IRI (Information Resources Inc.). These companies are consumer packaged goods data syndicators. Merging their top-selling data with the retailer’s internal data ensures a c-store operator is not overlooking new trends or products that could result in additional profit. “Don’t work inside a vacuum and think your data is telling you everything,” Nolan cautioned. “You could be missing something.” Many wholesalers will provide data to operators,
