The shelf size is limited and so is the shelf space allotted to a CPG.

Sequence of product refers to the sequence (left to right or top to bottom) in which the brands' products will be placed on the shelf. And CPG manufacturers may not wield enough influence unless they have strong partnerships or relationships with key retailer accounts. Here's a look at how shelf KPIs fare when it comes to the amount of control CPG requires for a particular shelf KPI, the difficulty in implementing that KPI, and its incidence of use. They are tricky to execute, because their implementation is dependent on the influence that a CPG has on shelf layout. However, when it comes to the Perfect Store programme, one of the most important KPIs for visibility are that of shelf arrangement. Some of the most popular shelf KPIs that CPG manufacturers measure are on shelf availability (OSA) to detect out of stocks and share of shelf (SoS) to ensure optimum usage of shelf space that gives the product maximum visibility. This data is interpreted to create the ideal shelf layout which aids in product lift off from the shelves. This is the reason why CPG companies invest in point of purchase and point of sale data collection. The right product visibility is the cornerstone for perfect store execution. In this blog, we take up the entire spectrum of shelf arrangement KPIs and how they can be effectively measured. Shelf arrangement and planogram KPIs are often considered the gold standard for retail visibility execution, which is why their compliance is integral to creating a Perfect Store.

Retail planogram