For almost 100 years, AWG’s core value has been how to help its member retailers compete favorably in all markets served. It is so important, it’s in the mission statement. With the initiative Enabling Technology Capabilities, a core benefit workstream of the Convergence transformation program, this objective is being taken to another level. In 2023, technology enables nearly all business capabilities. This is especially true throughout all elements of Convergence. Whether in AWG Brands or Assortment Optimization, investments in technology are squarely set on improving the insight
gathering, supplier collaboration, category management decision-making, and metric-gathering actions that are imperative to organizations making smarter decisions that impact their bottom line. One of the biggest opportunity areas being tackled is the analysis necessary to ensure member retailers are on the same playing field as their
competition. There are no areas more important in this aspect than product assortment, pricing, and promotional activity.
Building a Competitive Edge
Historically, AWG made crucial category management decisions relying heavily on warehouse data or supplier partner guidance. Going forward, market measurement is a key enabler that supports initiatives across AWG. This capability will enable AWG and member retailers to better understand business performance relative to local and macro market trends (and competition) – down an equity/local market level. This will in turn identify opportunities to improve assortment and increase AWG Brands share. Selective, secure, and thoughtful use of point-of-sale data is a requirement for obtaining market measurement analytics and AWG is actively partnering with IRI to define the market measurement model/service, tailored to independent retailer members. Plus, enhanced new item management will improve the speed and efficiency of adding new items to product assortments. This allows category managers to allocate more time toward driving improved member outcomes and helps AWG member retailers entice and delight consumers with interesting and innovative products on the shelf.
Data = Decisions = Dollars
Already well underway is how the category management teams will use this data to manage and measure their categories better. New standardized reports and workflows align objectives and vision of outcomes across AWG and supplier partners to more quickly take action to keep member retailers competitive. Whether through better forecasting to keep products on shelves or through better trade fund planning, AWG is enabling member retailers to keep more money in their pockets. Trade funds optimization enabled by these streamlined processes will allow AWG and its member retailers to realize increased amounts of trade and promotional dollars from manufacturers. More strategically analyzing and planning promotional activity benefits member retailers rather than allowing supplier partners to drive event planning, justifies AWG and ad group asks for increased supplier investments and support. This next generation category management is powered through AWG’s Partner Gateway (APG) which already has more than 1,100 supplier partners signed up. This is not a passing fad, it is the way AWG, suppliers, and member retailers will operate going forward for one simple reason: the investment in better technology and enhanced use of cross-solution data makes retailers more competitive.
Transforming the way AWG does business today requires technology that enables smarter decisions with redesigned insight-generating resources. Better insights mean better shared decision-making facts which means better collaboration, all possible through integrated, collaborative technology. This all reinforces AWG delivery on the
other part of its mission statement to provide member retailers all the tools, products, and services they need to compete and win at shelf, in store, and online.
