April 2015 InfoMetrics A Cornerstone of the New Convenience Distribution Association With dramatic changes taking place among consumers and within the convenience distribution industry, the Convenience Distribution Association (CDA), formerly the American Wholesale Marketers Association (AWMA), is being retooled to more effectively help member companies respond and succeed well into the future. One of the cornerstones of the new CDA is increased emphasis on the association’s proprietary data collection and distribution system, InfoMetrics, the industry’s only resource for reliable, current sales and distribution data from convenience distributors themselves. CDA recognizes that to effectively serve today’s convenience store operators, distributors must be armed with timely information and they must be able to obtain it quickly, in fact, in real time. That is exactly what InfoMetrics provides. “We’re creating ways to get information, including real-time data from our InfoMetrics program, to distributors quickly so they can make the timely decisions needed to be competitive and successful in the marketplace,” explains CDA Chairman Rob Sincavich, president and CEO, Team Sledd, Wheeling, WV, an avid InfoMetrics user. The InfoMetrics data program was developed in partnership with InRhythm, Pittsburgh, PA, to help distributors, suppliers and retailers maximize sales and profit through technology. InfoMetrics currently provides extreme value to the nearly 60 participating distributors, as well as a growing number of manufacturers. It is an exclusive tool that helps distributors and manufacturers provide c-store customers with the right products in the right place at the right time. Category management decisions using InfoMetrics are based on facts—on the latest distributor sales information, updated every week. It helps managers quickly see what products are selling well in the industry and their own marketplace, and which ones are not. Then, they can make adjustments to maximize sales and profit, and help their c-store customers do the same. The result? Increased bottom line for distributors, retailers and suppliers alike. The sales data is provided to InRhythm by Saturday, and by Sunday a week later, more than 1 million SKUs are processed covering some 160,000 unique items. It is then provided to users on a secure Internet portal. “We provide information in our sales reports that help InfoMetrics participants understand what they Rob Sincavich (continued on page 2) InfoMetrics: Higher Profits, Increased Customer Loyalty InfoMetrics helps the company’s sales and marketing team sort through the many, often duplicative, products offered by manufacturers and determine which items should be carried and tagged on customers’ shelves. CDA members’ participation in InfoMetrics continues to build as distributors increasingly understand the value of the program for sharpening category management and improving customer service, which leads to increased sales and profit for all members of the supply chain as well as increased customer loyalty because of the added service that is being provided. Inc., East Peoria, IL, as it allows distributors to make certain the right products are in the right place on the shelf at the right time, thus maximizing sales and profit. In the association’s 2015 Industry Outlook Survey conducted in January, 24 percent of respondents said they intended to participate in AWMA’s InfoMetrics program in 2015 and almost 52 percent said they planned to increase implementation of category management. At S. Abraham & Jon Burklund Sons, Inc. (SAS), Grand Rapids, MI, InfoMetrics helps the company’s sales and marketing team sort through the many, often duplicative, products offered by manufacturers and determine which items should be carried and tagged on customers’ shelves. Like most users, SAS uses the data program to identify core product voids and make sure sales are not lost due to out-of-stocks. InfoMetrics, of course, is a preeminent category management tool, notes Jon Burklund, CEO, Burklund Distributors, InfoMetrics: A Cornerstone of the New CDA (continued from page 1) InfoMetrics News is a publication of the Convenience Distribution Association (formerly AWMA) and InRhythm © 2015 CDA www.awmanet.org www.inrhythm-inc.com 2 InfoMetrics News are missing,” says Viv Penninti, InRhythm president & CEO. “It is actionable information.” and to beef up analytical reports in our publications. Just as it provides a cornerstone tool for scores of CDA members, so it will for your association as we seek to provide the sharply focused service that today’s members need. InfoMetrics now provides a robust database and a multitude of Viv Penninti tools that allow participating CDA members to respond to the changing needs of their customers, which, in turn, allows those retailers to maximize their sales opportunities and better serve consumers. As part of the new CDA, several communities of interest are being created, including the InfoMetrics Users Community. This will provide an effective way for those who use the system in their jobs to share ideas, discuss problems and seek solutions with their peers. At CDA, that data will be used to demonstrate industry trends and developments, to help guide programming, April 2015 There will be both in-person meetings as well as the ability to meet and discuss online, virtually at any time. Stay tuned for more developments. “Manufacturers continually come out with very similar items as their competitors and often the products are fairly uniform in both look and taste,” explains SAS president Alan Abraham. “When manufacturers bring in 10 or 12 different flavors of some snack, it’s tough. There is no place to put it all on the shelf.” “You have to be very crisp in how you do business,” suggests Burklund. “The manufacturers love cases and throughput. They look at everything in terms of dollars. We had nine different brands of healthy snacks, but we’ve cut that to six or seven. We bought 200 cases, and 30 people bought them. We were selling 10 cases a week. On average, we ordered them every three weeks. Basically, we were selling one bag a week. We are selling 60 kinds of energy bars now.” Burklund also stresses the need for a “real frank conversation” between manufacturers and distributors on the handling of unsalables. “We have to be able to manage new items,” he says. “We have to be able to clean out those that don’t sell so we can bring in the next new items.” InfoMetrics reports can help identify those products in a heartbeat. continues to exist. The number of convenience stores, while healthy and steady, is not appreciably increasing in most areas, so if distributors are to add retailer customers, they generally must come from a competitor. Significantly, 80 percent of survey respondents said they expected to increase their operational results through the addition of new customers within their marketplace, which means they fully intend to lure retailers away from competing distributors. Traditionally, the primary strategy to achieve that has been through offering lower prices, but that is becoming increasingly problematic as margins are already razor thin due to rock bottom pricing and frequently, costly service contracts. “The price pressure is there for all of us,” says Abraham. InfoMetrics’ sales data can show what products are selling well in the region and should be carried, and what products should be avoided. “Our vice president of sales and marketing is very supportive and requires everyone on the management team to be able to use InfoMetrics,” says Abraham. According to AWMA’s survey results, 76 percent of responding companies use InfoMetrics to assist with filling voids and increasing sales, while almost 71 percent use it to assist with category management. One of the optional opportunities provided by InfoMetrics is the ability to perform detailed performance reviews with customers, and 53 percent of respondents reported using this service, saying that InfoMetrics is an important factor in improving their customer service and customer relations. Competitive Challenges Clearly, that is especially important considering the intense competition in the convenience distribution industry that InfoMetrics News April 2015 3 InfoMetrics Training Sessions Help Users Hone Skills A series of InfoMetrics Distributor Users Training Seminars were held during the 2015 Marketplace & Solutions Expo in Las Vegas, providing three levels of training for distributor personnel who are responsible for using InfoMetrics at their companies. Administered by InRhythm, Inc. experts and distributor members of the InfoMetrics users advisory group, the sessions attended by over 40 association members from more than 20 distributor companies. InRhythm, Inc. staff experts offered three training sessions: InfoMetrics Introductory Overview, Category and Procurement Management, and Sales and Customer Management. InfoMetrics Introductory Overview This track focused on providing a general understanding of the entire InfoMetrics program, outlining what portion of the portal is free just for participating in the InfoMetrics program, and what value-add options are available to purchase on an ad-hoc basis. Training objectives were to provide a solid understanding to those distributors who are new to the InfoMetrics program and those ready to start utilizing the tool, as well as decision-makers who would like a better understanding of what is available and by Zachary Talmadge InRhythm, Inc. determine which options may fit their business goals and objectives. “The InfoMetrics team continues to successfully evolve a data-driven reporting product with timely industry sales data. Utilization of the reporting platform will enable Jackson Wholesale to more effectively manage sales, optimize product mix, and increase gross profit while positioning retailers to better satisfy supply demand relationships with end customers,” said Terry Miller, Jackson Wholesale Co., Jackson, KY, who attended this session. Category and Procurement Management This track focused on identifying revenue increase and cost reduction opportunities as inputs for buyers, sales personnel and operational personnel. If a user currently promotes gap-fill initiatives or is considering putting these strategies into place, the Focus Item Report will be key. Training objectives were to improve category and item assortment efficiencies, reduce inventory costs and increase sales. Additional goals of this training session were to: • Determine highest potential customers using Top 10 opportunity assessment; • Utilize benchmarking to determine if a user is selling the highest ranking items in his/her region; • Determine core item void opportunities for gap fulfillment and track the progress; • Obtain vendor reports for upcoming meetings and prepare for discussions; • Determine SKU rationalization opportunities; and • Determine inventory cost saving opportunities. InRhythm’s Jeff Daugherty (center) works with users during an Expo InfoMetrics training session. 4 InfoMetrics News April 2015 “The benchmarking in the Inventory Performance Report brought value to the conversations, while allowing us to compare our own average days of supply with the market to determine where our purchasing habits can be improved,” said Cole Ehlert, vice president of category management for Brenham Wholesale Grocery Co., Brenham, TX. “With a quick glance at the report, we are able to determine a few outliers and plan to work within our department to InRhythm’s Bill Casey (right) leads an Expo InfoMetrics training workshop. reduce carrying costs without sacrificing profitability to improve the bottom line.” Sales and Customer Management This track focused on helping distributors use performance-based criteria to provide a more robust service to their customers and aid in developing new business. Participants learned how to provide vendor partners with the opportunity to work directly with their information and reduce time spent compiling report requests, while generating revenues in the process. Training objectives were to provide better information to their customers and capitalize on business opportunities. Additional goals of this training session were to: For more information regarding how to become a participating distributor, to learn more about the capabilities of the InfoMetrics portal, and/or to schedule an InfoMetrics demo/training session, please contact InRhythm, Inc. at (412) 697-2665. • Determine voids, out of stocks, and program void ordering opportunities; • Provide sales reps with store level information for discussion with owners/operators; • Create and publish a customer data portal for customer/retailer access and analysis; • Provide professional business review PowerPoint decks for customers/retailers; • Generate revenue with the user’s key vendors by providing access to data via a web-based portal. “I am confident that Merchants Grocery will benefit from using InfoMetrics,” commented Lori Davis, market data analyst for Merchants Grocery Co., who attended the session. “Our industry is changing more and more all the time, and InfoMetrics will prove to be a valuable resource when used by distributors. It is important to fill the voids so customers are not missing out on opportunities and to get the top 10 in each category in the stores. There is so much more information that we can use to boost sales and profit and I want to make the commitment to see it happen.” View New InfoMetrics Training Video The first in a series of online training videos for InfoMetrics users has been completed by CDA, in cooperation with InRhythm, Inc. In this video, InRhythm’s Jeff Daugherty, senior manager, client services, walks viewers through an introduction to InfoMetrics, explaining the many tools and benefits provided by CDA’s exclusive data program. Additional videos are being developed to walk viewers through the 12 major InfoMetrics reports that are provided, the Customer Portal and the rebate programs and incentive programs module. Please visit https://vimeo.com/122832519 to view this video. InfoMetrics News April 2015 5 CDA’s New InfoMetrics Facilitator—Helping to Expand Its Reach InRhythm, Inc. recently dedicated a full-time employee to working directly with the Convenience Distribution Association (CDA) to create more synergy between the two entities as we seek to expand participation in InfoMetrics by member companies and manufacturers. Zac Talmadge is now assisting CDA on several projects, including contributing to InfoMetrics News, satisfying data requests, and providing CDA with up-to-date information regarding industry trends. Additionally, Zac will be providing InfoMetrics training tips to be included in the weekly CDA Update newsletter. The first tips will begin appearing in the April 6 Update, so watch for them! One of the most important aspects of Zac’s work with CDA will be the emphasis of the value that can be gained from participating in the InfoMetrics program. Zac hopes that both the data and tips he sends to CDA will motivate distributors to think about one of two things: the value that can be obtained by participating in the program or, if a distributor is already SalesMetrics™ Enhancements Released Monday, March 30 SalesMetrics™ is an iPad/iPhone/Android/PC based application for salesforce reporting, that utilizes your salesforce hierarchy (VP » Manager » Sales Rep) in order to set up specific reports that are updated weekly. This tool enables sales reps to be more effective at the customer level, with definite potential to increase sales. The sales rep selects the reports prior to visiting customers while online in the office or at home and the data is downloaded for offline use. The Order Event Report provides the rep with actionable information on Voids, Out of Stocks and Program Voids—which can be Manufacturer Rebate Programs or your own internal Core Item incentive programs. 6 InfoMetrics News April 2015 participating, how much more value can be obtained from gaining a better understanding of the capabilities of the software. Viv Penninti, InRhythm, Inc. President and CEO, said, “We’re delighted that Zac will be supporting CDA in their efforts to leverage InfoMetrics and provide valuable insights to the distributor community.” Zac joined InRhythm, Inc. as a client support analyst in December of 2014. Before joining InRhythm, Inc., Zac worked as a client service representative analyst for Mellon Capital Management, a BNY Mellon Asset Management subsidiary in Boston for two and half years before relocating to his hometown of Pittsburgh. Zac is an active volunteer with The Leukemia Lymphoma Society and has participated in its Team in Training program for the past three Boston Marathons. “CDA welcomes Zac and his efforts to help broaden the reach of InfoMetrics throughout the convenience distribution industry,” said CDA President & CEO Scott Ramminger. “Zac will be helping with the integration of InfoMetrics and C-Metrics throughout all association products and programs, and will be helping distributor members in their use of InfoMetrics.” The interface has been updated to reflect the InRhythm mobile brand of technology. Users will continue to use the same user name and password, but now it has a new, fresher look. New Space Allocation Optimization Tool Coming from InRhythm This optional comprehensive tool, developed by the team at InRhythm for InfoMetrics™ participating distributors, will provide the ability to design a store’s floor plan, along with specific shelf space to allocate the optimal amount of footage for sub-categories and top selling items in the store. Expected release date is early second quarter 2015. If you are interested in finding out more about this exciting new module, please contact anyone on the InRhythm Team: Christina Hyatt [email protected] Jeff Daugherty [email protected] Zac Talmadge [email protected] Each Store Space Plan can be saved and used on a regular basis to provide your key customers with an updated report of how much space should be given to certain sub-categories, as well as the items to be sure to include. The same space plan can be used for multiple customers. However, because we are utilizing census data the results provide you with a unique plan specific to that store’s market. The Store Space Plan tool allows you to enter the specific dimensions of the store, as well as identify each shelf, with length, height, depth and number of racks. We’ve added a new report for those utilizing the Programs Module and SalesMetrics™—which provides the ability to push program voids down to the sales rep’s mobile device in order to fill those gaps. The new Program sign-up report provides the ability for sales reps to get signatures from their customers in order to sign them up for all Programs they’ve been qualified for—right on your mobile device! Other enhancements include: • Top 10 Void Items in the Customer Order Event Report have been increased to Top 15 Items; • Totals have been added to the Sales Performance and Store Performance reports; • Ability to request the Store manager’s signature when placing an order. Please contact InRhythm if you’d like to learn more: Christina Hyatt, [email protected] Jeff Daugherty, [email protected] Or, call our office at 412-697-2665. InfoMetrics News April 2015 7 InfoMetrics Data Shows Growth What’s driving sales growth for convenience distributors? Here’s the story according to the numbers. 8 InfoMetrics News April 2015
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