Optimizing Operations With Modernized Retail Execution

CGT: What are the benefits, and how is the value being measured?

Will: Well, we’ve talked about a few examples above, such as brands immediately and accurately spotting out-of-stocks or scaling their reps’ territories and even tracking competitor products weekly or daily. That level of visibility helps reduce lost sales and ensures marketing efforts actually show up on the shelf.

So how does that translate to value? The KPIs we work to realize with our customers include reduced out-of-stock rates, where brands are tracking how much they improve product availability thanks to faster shelf replenishment. One of our customers ran an AI trial in the candy category with shelf scan technology. Of stores visited with IR tech in trial vs stores not, they saw an increase of 6% in on-shelf availability. That is massive, tangible value creation. Extrapolate that at scale and you have a game-changing plan that makes you a hero. 

There is also a sales lift because when products are always on shelves and displayed correctly, the result is obvious. Our brands often A/B test stores with and without image recognition tools in their reps’ hands to compare results. A big one is labor efficiency because when brand or service provider teams don’t have to manually audit shelves anymore, that frees them up for higher-value tasks, increased coverage or larger scaled responsibility — and it’s easy to calculate time saved and the impact of that time savings.

CGT: With increased competition due to inflation and private label growth, what tactics can consumer goods companies implement to maintain a competitive advantage?

Will: Yes, perfect example. Consumer goods brands are getting squeezed — rising costs, price-sensitive shoppers, private labels looking more attractive… How can they use image recognition to stay ahead? It’s the perfect tool for it, actually. You can spot and respond to this competitive movement much faster with these tools. Image recognition lets brands track shelf space and pricing of competitors, including private labels, in near real-time when reps scan shelves. 

This data would reveal if share of shelf is falling, if a retailer starts pushing a private label harder or if there are undercuts on price. Then the brand can see it and respond, maybe with promotions, better placement negotiations or targeted marketing. These shifts are happening fast, and brands need real-time visibility to keep pace. The good news is that tools like this are more accessible than ever. Now’s the time to lean in and act.