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Merchandising & Planogram Compliance

Computer vision planogram verification with real-time compliance scoring achieving 95%+ compliance versus 50-70% manual photo audits with quarterly checks transformed to real-time monitoring.

Business Outcome

time reduction in planogram audits

Complexity:

Medium

Time to Value:

3-6 months

Why This Matters

What It Is

Computer vision planogram verification with real-time compliance scoring achieving 95%+ compliance versus 50-70% manual photo audits with quarterly checks transformed to real-time monitoring.

Current State

(Traditional)

1. Corporate merchandising team creates planogram diagrams (shelf layout for product placement) and emails PDFs to store managers quarterly. 2. Store associates manually execute planogram during overnight reset: move products, adjust shelves, install signage based on printed diagram interpretation. 3. District Manager visits store quarterly and manually audits planogram compliance: walks aisles comparing shelf layout to planogram diagram finding 30-50% discrepancies (wrong product location, missing items, incorrect facings). 4. DM takes photos of non-compliant sections, emails correction list to store manager. 5. Store manager assigns associates to fix issues over next 2-3 days (if not forgotten). 6. No verification of corrections until next quarterly DM visit. 7. Planogram compliance 50-70% with quarterly detection cycle resulting in brand inconsistency and lost sales.

Characteristics

• Email for communication and updates
• Excel spreadsheets for tracking compliance metrics
• Paper-based checklists for in-store verification
• Photography tools for compliance documentation
• Basic ERP systems for inventory management
• Retail execution software platforms (e.g., GoAudits, MerchLogix)

Pain Points

⚠ Poor communication between departments leading to compliance challenges.
⚠ Inconsistent implementation of planograms across different store locations.
⚠ Inefficiencies due to reliance on manual inspections and paper checklists.
⚠ Lack of real-time visibility into compliance status.
⚠ Manual processes are time-consuming and generate excessive paperwork.
⚠ Difficulty in scaling compliance efforts across numerous store locations.

Future State

(Agentic)

1. Planogram Compliance Agent delivers digital planogram to store associates via mobile app with step-by-step instructions: 'Aisle 5 Cereal Reset - move Frosted Flakes to shelf 3 position 4, add 2 facings'.

Associates execute reset following mobile guidance with product images and exact placement coordinates.
After execution, associate takes photo of completed section using mobile app.
Computer Vision Agent analyzes photo against master planogram: identifies products using image recognition, measures shelf position accuracy, counts facings, validates signage placement.

5. Agent generates real-time compliance score: 'Aisle 5 compliance 92% - Frosted Flakes correct position but only 1 facing instead of 2 - corrective task created'. 6. Corrective Task Agent auto-assigns associates to fix issues within 24 hours with targeted instructions and photo re-verification. 7. Corporate dashboard shows real-time compliance by store, category, planogram achieving 95%+ compliance vs 50-70% manual with same-day detection and correction vs quarterly.

Characteristics

• Master planogram diagrams with product images and shelf coordinates
• PIM with UPC codes and image library for CV recognition
• Store associate shift schedules and task assignments
• Historical compliance scores and correction time-to-complete data
• Photo verification images with metadata (store, aisle, timestamp)
• Computer vision model trained on product packaging recognition
• Corporate compliance dashboards and merchandising KPIs

Benefits

✓ 45 point compliance improvement (95% vs 50-70%) through real-time monitoring
✓ Quarterly → real-time audit cycle enables same-day correction
✓ Computer vision auto-scoring eliminates DM subjective audits (1-2 hours saved per store)
✓ Corrective tasks auto-generated and tracked to completion
✓ Corporate visibility into compliance by store/category in real-time
✓ Increased sales from proper product placement and availability

Is This Right for You?

39% match

This score is based on general applicability (industry fit, implementation complexity, and ROI potential). Use the Preferences button above to set your industry, role, and company profile for personalized matching.

Why this score:

• Applicable across multiple industries
• Higher complexity - requires more resources and planning
• Moderate expected business value
• Time to value: 3-6 months
• (Score based on general applicability - set preferences for personalized matching)

You might benefit from Merchandising & Planogram Compliance if:

You're experiencing: Poor communication between departments leading to compliance challenges.
You're experiencing: Inconsistent implementation of planograms across different store locations.
You're experiencing: Inefficiencies due to reliance on manual inspections and paper checklists.

This may not be right for you if:

High implementation complexity - ensure adequate technical resources
Requires human oversight for critical decision points - not fully autonomous

Parent Capability

In-Store Compliance & Audits

Enables continuous compliance monitoring with near-complete coverage, real-time violation detection, and significantly fewer violations through AI photo verification and automated corrective actions.