Dr.Max Slovakia Case Study
Largest pharmacy network in Slovakia
• Customer since 2013
• More than 300 pharmacies all over the country
Andrea Szymeczek | Category Management Specialist
In addition to a Quant pilot phase with the pharmacy chain Dr.Max in the Czech Republic, we initiated a setup phase with Dr.Max Slovakia in Autumn 2013. Up to then no Category Management system had been installed. The companys category management system used in other countries (Czech Republic) was not capable of satisfying the company’s needs. Certain targets were therefore defined, which should be reached during the setup process:
- Stable Multiuser software including a centralised database with analytical outputs.
- Category Management including real floor planning with space share analytics influencing space distribution.
- The availability of planograms, including delta planograms, on the web via store logins.
- During the setup phase the next target was defined.
- Planograms should be based on store-specific sales data.
We concentrated during the first weeks on developing routines to upload data deriving from the existing business intelligence software into Quant. Data (individual store data like sales / stock, and product data) are transferred daily to a FTP Server and then imported at night into Quant where pre-calculations run until morning. With the data already available in the system, the category managers were trained. The training period was very short and they were soon able to operate Quant.
The system can be accessed from anywhere in the world, and planograms can be created by multiple users. Floor plans are designed in Quant, even allowing already existing CAD-designed floor plans to be uploaded. Using store-specific sales data (also available in the floor plans), the correct amount of space for each category was calculated and pharmacies were restructured based on these analyses. A feature that allows multiple floorplans to be created for a single store allows for floor plans to be easily switched according to season.
For Dr.Max, one of Quant’s most important features was the web access possibility in stores. This meant that planograms could be downloaded directly on site. The sister company’s previous system in the Czech Republic required PDFs to be uploaded manually onto a FTP. This was not regarded as an efficient way to distribute planograms.
In mid 2013 we began our search for a category management system which would meet our quite considerable requirements. We needed a system to manage space, stock and display. We needed a system which would simply and clearly communicate with both suppliers and pharmacies. We wanted a system which would be accessible from anywhere and at anytime. Quant meets, and even exceeds, all of these requirements.
For optimum space control in pharmacies, it is important to be able to obtain information about stock performance and productivity at any given time: Space to Sales analysis. With just one click this is possible in Quant. With just one more click, you can share this information with pharmacies via Chat. This functionality was especially beneficial for us during the first stage of building Ground plans, and while consulting with individual pharmacies.
When making decisions about our range of products we greatly appreciated the wide range of analysis available — according to supplier and brands. The possibility of exporting these analysis straight to Excel or working directly with Pivot Tables really helped us.
However, Quant’s greatest selling point is the functionality which creates planograms with such ease and speed to suit each individual pharmacy according to specified criteria such as sales and daily stock. Planograms can be created for one single pharmacy, a combination of pharmacies, or based upon the company average, depending on your choice. This is definitely Quant’s biggest advantage for inventory management and for overall planogram access.
Andrea Szymeczek / Category Management Specialist
Quant combines the Life Cycle Management (LCM) with the stores’ web login. LCM allows dates to be set when certain planograms will be automatically published, pending implementation. Automatically generated emails are sent to the pharmacies, including information about newly published planograms that are pending implementation.
The date when the pharmacies switch the planogram status from pending to implemented, is stored in Quant for further analyses. The pharmacies’ web login also includes a communication platform. In this way, pharmacists are directly connected with their category managers. Any problems arising can be discussed. The conversations are stored. Different departments (for example Purchase) are included in this communication platform.
Quant’s Cloud approach also provides the opportunity to include pharmaceutical producers in the process. Information about locations, number of products placed, etc. is used to enhance cooperation between a pharmaceutical retailer and the pharmaceutical industry.
In our modern age, we do not suffer from a lack of information. The problem is rather that there is too much information available. That is why it is so important to find a simple, well-structured, and comprehensible way to transmit large amounts of complex information to different pharmacies — everything concerning stock, space and display.
Quant’s web application has proven to be an ideal tool for us. Its biggest advantage is its simplicity and clarity, which means that it can be impemented in pharmacies without long training periods, complicated installations, or heavy manuals — quick and easy.
The pharmacies quickly become accustomed to the web application’s monthly reports on display changes: informing them about which products have been added, moved or removed. Of great Importance for us at central management is the fact that we can communicate directly with the pharmacies via Chat, so that we can quickly react to comments and provide feedback without complications or searching through data.
The possibility to control the implementation status in individual pharmacies is one of many useful functionalities.
The best thing about this functionality is that the program does this by itself, and automatically informs pharmacies and their superiors about as yet unimplemented planograms.
When dealing with our suppliers, we appreciate the opportunity to discuss and to show individual planograms that have not yet been distributed to pharmacies. We also appreciate the unique functionality which allows suppliers to view data concerning only their own products, and not data concerning other products.
Marián HODÁK / Director of Sales
During the setup phase, Dr.Max decided to use Quant’s store-specific planogram calculation. The aim was to improve turnover and lowered profit rates due to missing products or wrong stock quantities in pharmacies.
Quant uses store-specific sales data to calculate the number of product pieces that should be placed in a rack. If a product is not sold at all, it will be automatically replaced, following certain rules set by Dr.Max.
Store specific planograms created automatically based on planogram template and specified criteria such as sales and daily stock.
Store specific planograms integrated with automatic replenishment.
Category Management including real floor planning with space share analytics influencing space distribution.