Setting of Replenishment Criteria
Quant optimizes the planogram according to the set replenishment criteria. The replenishment criteria are set separately for each template. In this manual we will describe the criteria in detail.
You can set the replenishment criteria in the Template tab - Replenishment section. In order for a given planogram template to be optimized according to sales, you need to check the box Optimized.
Setting replenishment criteria
Replenishment criteria
Prioritization Strategy
- By Sales: The products are inserted into the planogram in the order from the product with the highest value of a certain sales indicator (according to the Sales Type Used for Product Priority). If e.g. Turnover is selected in the Sales Type Used for Product Priority property, then the products with the highest turnover will be prioritized and inserted into the planogram first.
- By Product Attributes: Products will be inserted into the planogram in the order of the attribute you select in the Prioritize By line. For example, you can import a product attribute into Quant that specifies the custom order in which the products should be placed in the planogram, and then select this attribute here.
- By Template Position: Products are inserted into the planogram in the order that corresponds to the order in the template from left to right.
Prioritization Strategy
Prioritization Strategy: By Product Attributes
For all prioritization strategies, products must meet the replenishment criteria to be placed. So, for example, if we choose By Template Position strategy and the very first product in the template does not have enough sales to be placed, Quant will not place it in the planogram.
Min / Max Strategy
Quant can calculate Min and Max values from set days reserves or it can take fixed values set on the product/category.
- Days Reserves: Minimum and Maximum are calculated according to the Min and Max Days Reserve settings in the replenishment criteria or on the product/category.
- Min / Max Volume: Minimum and Maximum are calculated according to the Min and Max Volume setting on the product or category. Min and Max Volumes can be filled in at the level:
- Product: In the Products section under the Basic Properties tab .
- Product / Store: In the Products section under the Store Specific Properties tab. Here you can specify values on the product for each store and can set different Min and Max Volumes for each store.
- Category: In the Category section, you can set the Min and Max Volume for the entire product category.
- Category / Store: In the Category / Category Store Settings section, you can specify the Min and Max Volume per category for each store.
If we set the Min/Max Strategy as Min/Max Volume, Quant proceeds from the highest priority with values filled in for Product - store specific property, if not filled in it proceeds with Product property, then Category - store specific property and Category.
Min / Max Strategy
Days Reserve Parent Value Source
The days reserves do not always have to be taken from the settings on the template, but it is possible to set these values on the product or on the category.
- Template: Minimum and Maximum are calculated according to the Minimum and Maximum Days Reserves settings here in the replenishment criteria.
- Product/Category: Minimum and Maximum are calculated according to the Minimum and Maximum Days Reserve settings on the product or category. Minimum and Maximum Days Reserves can be filled in at the level:
- Product: In the Products section under the Basic Properties tab .
- Product / Store: In the Products section under the Store Specific Properties tab. Here you can specify values on the product for each store and can set different Min and Max Days Reserves for each store.
- Category: In the Category section, you can set the Min and Max Days Reserves for the entire product category.
- Category / Store: In the Category / Category Store Settings section, you can specify the Min and Max Days Reserves per category for each store.
Quant then proceeds from the highest priority Product - store specific property, if not filled it continues with Product property, then Category - store specific property and Category.
In the figure below the Min and Max values that are taken into account when the Min/Max strategy is set to Min/Max Volume are highlighted in green. In yellow are highlighted the Min and Max Days Reserve values that are taken into account when Product/Category is selected as the Days Reserve Parent Value Source.
Product
Product / Store
Category
Category / Store
Sales Type Used for Product Priority
This criterion is only active if you select the Prioritization Strategy By Sales. Here you select from the types of sales values available in Quant: e.g. Sold Pieces or GP1. Select according to which type of sales you want the planograms to be optimized. If you select e.g. Profit, this means that products with higher profit will have a higher priority placement in the final planogram.
Normalize by Product Width
If the Prioritization Strategy By Sales is selected, products are inserted into the template in order from best to worst according to a certain sales indicator (e.g. sold pieces). If the Normalize by Product Width checkbox is checked, Quant takes into account different product widths and recalculates sales per 1 cm of shelf width, and the products with the highest sales per 1 cm of shelf width are inserted into the planogram first. This way you can easily avoid the situation where a very wide product takes up one whole shelf because it has the highest sales and there is no space for other products.
If the box is unchecked, Quant only works with the sales type you select in the Sales Type for Product Priority property and does not convert it to 1 cm of shelf width.
Let's imagine a situation where the sales of the best product in a category are 50 units and this product measures 20 cm in width and the sales of the second best product are 20 units and this product measures 5 cm in width. For the first product, sales per cm are 2.5 (50/20) and for the second product, sales per cm are 4 (20/5). Thus, if we recalculate the sales per cm, in this case we find that the second product sells more units per cm of shelf width than the first product, even though the first product is actually more marketable. If the Normalize by Product Width checkbox is checked, Quant will give preference in placement to the second product.
Sales Type Used for Product Priority and Normalize by Product WidthMin Days Reserve
This is the minimum number of days that the stock of products placed in the planogram must last. If the Min Days Reserve is set to 7, this means that the planogram should have products for one week. The quantity of BU corresponding to the Min Days Reserve in Quant is denoted by MIN. If the average daily movement of a product is 2 BU, in our example MIN = 7*2 = 14 BU.
Max Days Reserve
Indicates the maximum number of days for which we can have enough product stock corresponding to the location of all packages in the planogram. The amount of BU corresponding to the Max Days Reserve in Quant is called MAX. If the Max Days Reserve is set to 21 and the average daily product movement is 2 BU, we calculate MAX = 21*2 = 42 BU.
The values for the Min and Max Days Reserve must be converted to the number of BU (basic unit of measure). This is done by calculating the average daily sales. The daily movement, min and max BU data can be found in the product table in the Project Editor.
The product with Id 500693 has sold a total of 50 units in the selected period, the daily movement of the product is 0.14 BU. One whole product is thus sold in 8 days (8 × 0.14 = 1.1 → 1.1 is greater than 1). For this product with an optional priority level to be placed in the planogram, the Max Days Reserve must be set to 8 days or more in the replenishment criteria. Otherwise, Quant will not place the product due to low sales.
For a more detailed explanation of days reserves, please refer to the Min / Max Strategy: Days Reserves manual.
Prioritize By
If you select the Prioritization Strategy By Product Attributes, you must then set which attributes to prioritize products by in this criterion.
Phase Out Prevention Stock
This option applies to products with an optional priority level that would not appear in the planogram at all in the case of low sales, since the MAX value for them would be less than 1. Sometimes it is necessary to hold such products in the planogram in stores where they are in stock in such large quantities that it is not possible to allow the product to be absent from the planogram. So if you set the value to 5 for example, optional products that have at least 5 BU in stock in that store will be placed, no matter how well they sell.