Turn a planogram into an effective tool for your business!

We talked about the benefits of creating planograms in previous articles on our blog. For high-quality development, you need an up-to-date set of data on SKU and the specifics of the implementation of a product category on the network. As a result, the retailer receives a detailed plan for displaying goods. In fact, it is an image or a picture of the ideal location of the product range, which needs to be implemented on the trading floor. But what if the planogramming environment receives up-to-date data from ERP and transmits information to auto-order or other retail automation systems? This picture itself will become an effective tool for any business. We will talk about how this is possible and what benefits a retailer gets from integrating software for building planograms in our article.

The data collection process for planograms is simpler, faster, and more efficient

A centralized ERP system controls the retail chain processes. It also stores all data about SKUs that were once sold, are now sold or can be sold at the retailer's outlets. These can be descriptive characteristics, commercial classifiers used in the database, data on packaging parameters, product sizes, etc. In one system there may be information about sales, prices, and contracts.

Many of these data are necessary to build a quality planogram. To collect them, the merchandiser spends the lion's share of his working time. A specialist has to work with many services, carry out calculations, and process data to do this. This entire process can be automated by integrating planogram software with retail management systems.

During the implementation of integration projects, C4R specialists build the entire chain of work with data:

  • find out what information is stored by the retailer and can be used to build planograms, as well as the possibility of transferring it to the database for the software to work;
  • determine where the necessary data is stored in order to create a planogram quickly, easily, and without manual intervention;
  • adjust the data exchange to reduce the number of human errors.

The minimum data set for upload contains information about products, prices, stores, and sales in pieces for a certain period. In addition, the system allows you to upload an active assortment to the planogram, which should be sold on the shelf in this particular store.

In addition to the basic data, it is possible to upload additional information to the environment for working with planograms. These can be balances, a list of suppliers, data on the frequency of deliveries of goods to the store, or the results of additional calculations on margin, profit, sales, and revenue from different modules.

The C4R solution loads all the necessary information into the planogramming software at regular intervals, such as once a day or once a week. Thus, all relevant information is stored in the database. The merchandiser, starting to build planograms, sees his scope of work - the assortment for input and output, all the financial indicators of the SKU, and other characteristics necessary for deciding on the layout. That is, he can focus on his main work and does not waste time manually entering the necessary data.

We invite you to check the business processes of category management: download the MCM checklist and see where and what can be improved.

Download the checklist

Benefits provided by integration when drawing planograms:

  • The quality of planograms increases, since when drawing, the specialist uses the entire amount of necessary data, which is available in one click. For example, the assortment does not fill the shelf by 100%, and the task of the merchandiser is to correctly distribute the facings between the products of the category. But who should be given more space? Each SKU should get its "fair" centimeters, based on the goals and roles of the categories. In this case, the decision is made based on the financial indicators available in the system.
  • The speed of building planograms increases because all the necessary information is collected in the planogramming working environment. That is, a specialist does not need to simultaneously create planograms, collect data on SKUs from different services and systems, and also control their relevance.
  • The probability of human errors is reduced due to the automated unloading of all the information necessary for work, and the probability of shortcomings is minimized.
  • Provides maximum visibility. Usually, all descriptive information is stored in the name of the SKU: what kind of product it is, what container it is in, what color the package is, and what is the volume. In the C4R solution, for convenience, all this data is decomposed into fields. Such systematization also speeds up the process of drawing planograms. All products can be highlighted graphically based on their characteristics, which also helps to avoid errors when placing SKUs.
  • Digitization of data about goods placed on the shelf. Each SKU in the planogram becomes a database object, which in turn means that this data is available to other company systems, such as auto-order.

As a result, the merchandiser gets the opportunity and "free hands" to do his main work: the distribution of goods on the shelf space, the formation of customer-oriented layout schemes for each category, and the analysis of the results. And all the routine work to collect up-to-date information will be shifted to an automated data exchange system.

Integration improves autoorder accuracy

Based on the information from the planogram, it is possible to generate a data package required for auto-order and transfer it in the required format. This is the data in the link product-shop-information. Most often, this is the minimum, maximum, and insurance inventory, the calculation of which can be the same for the entire network or, if necessary, be based on the characteristics of each category.

C4R solutions allow you to calculate the category safety stock depending on the rules set in the network. For example, 30% of the shelf or a certain number of faces (each category may have its own number). Any variables can be included in the calculation methodology. As a result of the transfer of data from the planogramming software, the accuracy of auto-ordering is improved. And this means: there are no excess and underdelivered goods, the costs of servicing balances and write-offs are reduced, and sales are increased by minimizing OOS.

Learn more about C4R retail automation solutions from our consultants. To order a callback, write to [email protected] or fill out the form at the link.

Fill in the form

Output data package for price tags

 The product, getting into the planogram, automatically receives the address: rack number, shelf number, position number on the shelf, and the number of faces. All information is collected in the right format and in a certain sequence.
The SKU address listed on the price tag helps the staff of the trade hall when placing it on the shelf, plus it is an additional point of self-control of the compliance of the layout with the planogram.

Confirmation of the assortment compliance with the actual parameters of the equipment

Information is also generated that makes it possible to confirm the compliance of the open assortment of the store with the physical size of the shelf in the context of each category. When using such a process, the assortment matrix will always be compiled based on the actual length of the equipment. Therefore, there are no empty shelves and no items that do not fit.

The system for creating planograms can send all the data necessary for the implementation of the process to specialized software for assortment management or ERP.

The processes of ordering, delivery, and creation of planograms take place in the retail network in parallel, so the integration ensures maximum data accuracy and speed of their transfer to other systems.

Reports and end-to-end control on the way of goods to the shelf


Integration and seamless data exchange between planogramming software and other systems provide additional control options, such as monitoring shelf space efficiency within a category.

Also, thanks to the integration of software for building planograms and ERP, you can set up a reporting system that will inform about the “status” of the goods at each stage of the supply chain. In essence, it is a meaningful report with many checkpoints that can be tracked. In practice, this means that it is possible to monitor the places of failures on the way of the goods to the shelf and find the reasons for the discrepancy between the arrangement of products and the planogram.

That is, the exchange of data between systems allows you to track the causes of such situations when the goods did not arrive, or they arrive in excess, or other discrepancies between the order and the assortment matrix of the store approved by the office. Moreover, the system gives an answer in which area the failure occurred: whether it was the level of work of the merchandiser, the commercial department, or the supply department. Management receives all the necessary detail for making managerial decisions.

The C4R team has implemented 200+ projects of various sizes and provides consulting and retail audit services. The company's portfolio includes more than 20 solutions for the logistics automation, retail, and distribution. Learn about solutions for your business from our consultants. Fill out the form below.

The author of the material is Polina Leonenko,
MCM Consultant Consulting for Retail

Request a demo or consultation