Dimensional Errors Most Harmful to Category Management Execution

Mid summer Gladson began talking about the results in the Gladson white paper research titled A Study on Data Accuracy in the CPG Industry. That study reviewed hundreds of thousands of CPG products. Over ninety percent of the products examined had differences in dimensional accuracy, height, width or depth, from the scientifically measured Gladson Universal Product Masterfile.

We questioned which types of dimensional errors were most harmful to Category Management Execution. In our view, errors in product height dimensions affect the actual set labor more than other dimension errors. Width dimension miscues impact long-term category sales more than errors in other dimensions. This is because width errors account for over a foot per shelf in either too much product or too little product for the shelf length, which forces reset labor to make category and facings decisions.

But perhaps the inaccuracies in depth measurements cause some of the most insidious operational problems. Eighty-two percent of the products studied showed differences in product depth dimensions vs. the Gladson Universal Product Masterfile.

In a planogram the impact of products with under measured Package Depth shows more pack-out per facing than will actually fit on the shelf. Because of this, store level adjustments must be made to achieve proper case pack-out; adding or deleting facings; hanging product over the front of the shelf edge or keeping the back stock somewhere else in the store.

Products with over-measured Package Depth may require extra facings to achieve proper pack-out at the expense of facings required for other products. This results in planogrammed over-stocks which reduce inventory turns.

Pack-out and shelf capacity are required for Computed Assisted or Computer Generated Ordering. If the planogram has over and under stocks, the automated ordering system will base re-orders on erroneous capacity data by compounding the stocking problems week after week.

No wonder those expensive and exacting replenishment models fail to deliver reductions in out-of-stock which remain at the same impact levels today as when they were first measured in 1992.

Request a copy of the Gladson White Paper titled A Study on Data Accuracy in the CPG Industry.

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