Gladson Study Reveals Importance of Item-Level Product Data Accuracy; Out-Of-Stocks, Data Synchronization and Online Shopping Impacted
Lisle, Ill., September, 2007 --- A study conducted by Gladson Interactive, a leading provider of product images for the consumer goods industry, reveals that 90 percent of the over 200,000 products examined contained at least one error in either product height, width or depth dimensions. Significantly, nearly one in every five products had errors of greater than 25 percent.
These dimensional errors in the Product Information Masterfile (PIM) are a leading factor in store out-of-stocks, a major cause of consumer dissatisfaction. However, the impact of inaccurate product descriptions on new supply and demand chain applications and upon online sales and product research and health and wellness concerns can be even more serious for retailers and manufacturers.
“Studies conducted in the mid-1990’s by a leading packaged goods manufacturer estimated that a planogram goes out of compliance at the rate of ten percent each week,” said Gladson's CEO. “Based on our findings, there is a high probability that most planograms are never set as intended in the first place due to these product measurement inaccuracies”
Moreover, inaccuracies at the product item-level were found to be as costly to demand chain applications as case-level inaccuracies were to supply chain applications and a significant hindrance to the long-time industry goal of data synchronization.
Width and Height Errors Affect Sales and Costs
While all three dimensions are important, package width most directly affects consumer presentation and the Gladson study found that 76 percent of the products in retailer planograms were measured either narrower or wider than they actually were. In total, these width errors represent over a foot per shelf for the average section, leaving the part time merchandiser having to decide which item to add or delete.
Seventy-seven percent of the products showed a difference in package height and these are potentially the most expensive from a shelf set perspective. Realigning shelf height and getting halfway through a reset and then finding out that a product is too tall for the shelf, adds to labor costs and upsets a reset schedule.
Depth Measurement Errors Less Obvious, But Equally Serious
Inaccuracies in depth measurement cause some of the most insidious operational problems, and 82 percent of the products examined showed differences of this type. An under-measured package depth results in a planogram that shows more pack-out per facing than will actually fit and necessitating store adjustments such as adding facings or hanging product over the front of the shelf.
Products that are over-measured may need extra facings to achieve the proper pack-out at the expense of facings needed for other products. This results in planogrammed over-stocks and reduced inventory turns.
Product Data Accuracy Critical to Online Shopping and Wellness Concerns
In the case of online sales and product research, outdated product images and/or label detail can prove upsetting to consumers when the product that is delivered or that is found in the store doesn’t match the product they found online. “We know this is a major source of customer dissatisfaction and the only thing that isn’t clear is whether the shopper blames the retailer or the manufacturer,” added Gladson's CEO.
With health and wellness of growing importance to consumers, current, accurate, consistent and understandable ingredient, nutritional and product use information on the package is essential to ensure consumer satisfaction and safety and maintain store and brand reputation.
About the Study
The study collected complete package detail on over 200,000 items contained in more than 1,000 active planograms provided by one of three largest mass merchandisers, several of top ten grocery retailers, several large regional chains, a large drug retailer, a convenience store retailer, a number of specialty retailers and several large manufacturers. The item level detail from these product planograms was compared with the Gladson Interactive Product Library which is the industry’s most reliable benchmark for data accuracy consisting of over 800,000 sku’s. Dimensions for the Gladson Interactive Product Library are captured with state-of-the-art laser technology and are accurate to within 1/20th of an inch.
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