Page 25 - Demo

Understanding the strategic and competitive advantages of a well thought out and well executed space plan in a category management context is critical for both retailers and suppliers, as this interview with an expert in the field, David Haley of Haley Group, attests. By ShopAbility Director Peter Huskins. W hat used to be the capability of predominately FMCG-based grocery retailers and their selected supplier partners is now expanding into other channels and other retailers, and therefore out to their supplier base as well. The technologies, skills, processes and procedures that have been well proven over the years in grocery are all shifting outwards to a broader and willing multi- channel audience as the benefits to all participants are realised. Some of you may know David Haley from Haley Group, from previous roles he has successfully held in the local FMCG industry. Haley Group provides category and space management solutions for both retailers and suppliers and delivers results in major transformation projects, strategic category development, category reviews and planograms, implementing and training/development in supply chain platform Blue Yonder (formerly JDA). Who better to talk to about space than someone who has ‘been there and done that’ and currently ‘does that’? How did you make your start in the FMCG industry? I started my career in supermarkets, learning from the ground up and moving through to running a store. I was then truly fortunate to be offered a role with Cadbury Schweppes as a sales rep, which gave me the opportunity to advance my skills in sales, and in particular shelf layouts. I moved into a role as a category exec under the guidance of one of the greats of industry, building on my skills I learned at store level and applying them nationally to planograms. Throughout my career I broadened my skills through different sales and category management roles, I found that I enjoyed the category and space management discipline the most, and focused my career path on it. I was extremely fortunate to have great companies to work for, including Cadbury Schweppes, Twinings both here and in the UK, and with General Mills here in Australia. What led you to launch Haley Group? After spending most my career on the supplier side, I was looking for a new challenge and started my own agency focusing on category and space management in FMCG/CPG, both in Australia and overseas. Haley Group was born out of today’s rapidly changing dynamics in space management. Advancements in technology, changing ways of approaching planograms with shopper focused approaches and supply chain management, put planograms at the forefront of category management for both retailers and suppliers: both need to be more agile and have experienced resources available in category and space management. "Space and floor planning capabilities are where the ‘rubber hits the road’ for category management and are critical to successful retailing." Why is space such an important strategic capability for suppliers and retailers? Space and floor planning capabilities are where the ‘rubber hits the road’ for category management and are critical to successful retailing – optimising space, inventory, speed to market, meeting geographic and demographic differences by store, delivering on shelf availability and improved customer satisfaction, and delivering category KPIs and profitability. The advancements in technology and solutions have accelerated in recent years with space automation, assortment management and advancements in space planning and 3D store layouts. These advancements are allowing retailers to make smarter and faster space decisions, combined with the utilisation of the latest data in shopper behaviour and category performance. We’ve worked closely with retailers and suppliers to bring to life best- in-class solutions and enablement of space systems and processes. Some of our clients have achieved exceptional results embracing and accelerating this new world of space management and can now move faster and accelerate projects to meet the changing landscape in retailing, and to deliver category and customer plans that drive growth. This is called competitive advantage. What are the benefits for both retailers and suppliers in a collaborative approach to category management? The most successful results in category management we’ve seen is when retailers and suppliers work together to deliver category plans and planograms to meet the needs of their shoppers and consumers. Gone are the days of making a basic PowerPoint deck with a picture at the back of a planogram from suppliers. It just doesn’t cut it and it’s not good enough anymore. It never really was ... aligned category plans and planograms are a critical part of the category management process. A collaborative approach with a true understanding of what’s important is what’s needed to be a leader within category management and deliver results. A true category approach with specific planograms and range solutions (eg, demographic, size, assortments) and bringing to life true insights that drive growth to the category and meet the shopper’s needs is what’s required to deliver a best-in-class result. How can suppliers work to deliver a collaborative approach? The first thing to understand, and deliver against, is that each retailer in each channel is different and will most likely have their own way of conducting category reviews. No two categories are the same, and no two retailers use the same process. But there are some commonalities among category reviews: the need for a category approach, performance and shopper understanding, and insights driven from shopper research and post-review evaluations. Key areas of development and the formula for success are determining KPIs, knowing the category and range intimately, understanding the key category influencer metrics, determining product and category growth opportunities and risks, planning TO PAGE 24 CATEGORY MANAGEMENT MAR/APR, 2021 CONVENIENCE WORLD 23