Pyaterochka introduces an automated commodity representation management system

2021: Implementation of ACS by commodity representation

On September 14, 2021, X5 Retail Group announced that the Pyaterochka retail chain was introducing an automated commodity representation management system. The pilot was conducted on the basis of 600 chain stores in different regions and was aimed at increasing product availability, increasing retail turnover and saving resources for process administration. The project is one of the elements of the large-scale digital transformation of Pyaterochka.

The system works on the basis of checking analysis over the past six months: it automatically predicts the probability of selling goods up to the hour and informs when deviations are detected. So, if the goods were likely to have already been sold, but are listed on the balances, then the system generates a signal that is broadcast to a particular store. Information is processed by the store administration: employees double-check the situation and quickly resolve it. For example: additionally put the goods on the shelf, check the price tags or update the data on balances. At the same time, a support portal also works for system users, which allows you to accompany them at all stages - from verification to troubleshooting.

Previously, commodity availability was managed manually - directly by responsible employees of specific stores of the retail chain. The introduction of an automated commodity availability management system is aimed at improving the availability of goods and allows you to unload store employees. During the pilot, the increase in the availability of top goods amounted to about 1%, the resource need for process administration decreased by 0.83%.

The development and implementation of solutions that increase the efficiency of business processes and improve the customer experience of guests allows us to maintain high positions and is an integral part of the global digital transformation of Pyaterochka. The availability of goods on the shelf is the most important factor that ultimately affects both the RTO performance and the guest's impression of visiting our store. On average, retail sales lost due to incorrect representation of goods can reach 10%. And often this is just a human factor. Therefore, we actively automate routine processes, for example, specifically in the case of product representation, we have developed a solution for the retail market that meets all the requests of the retailer and allows you to effectively identify and solve emerging problems with product availability, minimizing the burden on staff, "said Sergey Popov, Director of Operations and Retail Technologies of the Pyaterochka retail network.

As of September 2021, the system analyzes the entire assortment, generating alerts for an average of 60 PLUs (product identification code) per day - for the most likely cases.

There are plans to expand communication channels for the convenience of employees and increase the speed of response. By the end of 2021, the solution is planned to scale to the entire network.