How to Use Planogram Software Tools Effectively

| Updated on February 14, 2024

Planogram software is a tool used in retail to manage inventory more efficiently. It enables retailers to create a visual representation of their store layout to indicate where products should be placed on each retail fixture or display. Planogramming creates standardization for accurate retail merchandising and removes the guesswork for store personnel. They maximize sales by optimizing goods placement and improving the shopping experience. 

grocery store

The program includes elements such as the arrangement of shelving units, product positioning and facings, and detailed descriptions of fixture types. The best planogram software integrates with other merchandising tools such as floor planning, retail analytics, compliance, and sales optimization solutions. It generally includes a database with commodity information, an editor for designing layouts, and a renderer for creating visuals. 

Advanced solutions may offer analytics tools and collaboration programs for multiple stakeholders. POGs software can help businesses address various challenges such as optimizing space, goods placement, and traffic flow, facilitating inventory management, prioritizing in-stock items, and improving the customer experience by creating an organized store layout and strategically placing products on shelves. By ensuring its compliance, businesses can maximize sales and overall outlet performance. It is an effective tool for retailers to increase in-store spending and create a visually attractive shopping experience.

planogram software

Implementing Planogram Software into Your Business

To prepare your business to implement this, it is important to first understand what they are and what they can do for the business: the system manages inventory and creates a visual representation of their store layout to optimize product placement and improve the shopping experience. Once you understand its benefits, research and select the most suitable software for the needs and budget of your particular business. 

  • Consider Implementing an Automated Inventory System to regularly update the database with the latest product information. This will reduce the likelihood of errors and ensure that the integration process runs smoothly. Additionally, designate a team or individual responsible for manually reviewing and updating the database regularly to catch any errors or inconsistencies that may have been missed by the automated system.
  • Analyze the Layout of Your Store and think about how you can optimize the space, product placement, and traffic flow. Effective floor planning is essential for retailers to maximize their available space and provide an appealing shopping experience. Wholesalers should avoid common mistakes such as not allowing an easy flow of traffic through the retail space, failing to maximize key “hotspot” areas, and having an inconsistent flow of departments.
  • Regularly Evaluate and Update the Floor Plan and product placement as needed. Distributors should take into account seasonal changes, inventory levels, and customer behavior when making these updates. Regular training and support for the team can help ensure that these updates are made in a timely and effective manner.
  • Provide Training and Support for the Team. Planogram software can be complex, so it’s important to provide your team with adequate training and support to ensure they can use it effectively and efficiently. You can provide training by organizing workshops and seminars, in addition, you can create a training manual that will guide your team through using the software. 

By following these tips and avoiding common mistakes, you can create an effective visual representation that optimizes your store layout, increases sales, and improves the shopping experience for your customers.

Measuring Planogram Effectiveness

Its effectiveness can be measured using various key performance indicators (KPIs) and analytics.  Compliance rate, sales per linear foot, out-of-stock rate, average shopper dwell time, and gross margin return on investment (GMROI) are some of the critical KPIs that retailers can use to measure the effectiveness of their planograms. 

Compliance rate measures the percentage of stores that follow it, while sales per linear foot measure the amount of revenue generated per unit of shelf space. The out-of-stock rate measures the percentage of time a commodity is out of stock, and average shopper dwell time measures the time shoppers spend in a particular area. GMROI measures the profitability of a particular product or category. Planogram analysis software can provide real-time sales data that can help retailers optimize their Planograms and improve sales performance. 

The use of its analytics can help sellers identify trends and make more informed decisions about product placement. By analyzing data on shopper behavior and sales performance, they can adjust this software to improve the shopping experience and increase revenue. Additionally, they can also use heat mapping and other advanced analytics tools to better understand shopper behavior and preferences.

What is the Best Planogram Software Available Right Now? 

Here is an overview of cloud planogram programs for managing merchandising in stores. A perfect software solution should address all of a business’s challenges to avoid the extra cost of integrating multiple systems or transitioning to a different one in the future, especially as businesses scale and different problems become more acute.

One of the most comprehensive solutions is the LEAFIO AI Planogram Optimization Solution, which offers both macro and micro space planning, schematics generation, optimization, and real-time communication between the head office and retail locations. This program also includes a mobile app for store employees, extensive analytical reports, and performance-oriented technical support.

Another option for its automation is DotActiv, which features outlet plan creation, fixture sales performance analysis, and planogram automation capabilities based on various criteria. Relex Solutions offers intelligent supply chain planning and optimization software that helps retailers improve their demand forecasting and inventory management, addressing the challenge of reducing stockouts and overstocks. By utilizing these programs, businesses can improve their merchandising efforts and streamline their operations.

Conclusion

In conclusion, planogram software tools are essential for retailers to effectively manage inventory, optimize product placement, and enhance the shopping experience. By utilizing it, retailers can create standardized layouts that maximize sales, improve store performance, and increase in-store spending. The integration of this software with other merchandising tools and analytics solutions further enhances its capabilities and effectiveness.





Adam Green

Adam believes it's pretty cool to be a software expert, but it's much cooler to share all the expertise he has gathered in all his years of experimenting and learning. He is contributing his knowledge and skills to Get Assist and also been featured as a contributor in many popular tech sites.

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