Publisher works with Leeds Uni to improve performance for merchandisers
RFID and AI technology are being embraced by Riverside Greetings to significantly improve performance for merchandisers.
The radio frequency identification (RFID) and artificial intelligence (AI) tech has allowed the Ossett-based publisher and distributer to create an automated inventory and category management system that marries the two to analyse and increase the greeting card category performance, while improving the productivity and effectiveness of its merchandising service.
And it’s been developed with the support of academic experts at Leeds Beckett University as part of a two-year Knowledge Transfer Partnership, part-funded by the government through Innovate UK.
Riverside’s new, patent-pending, technology, is being now piloted in several test stores in England, with md Andrew Glen expecting it to bring “significant benefits” for all of its independent convenience retailers and forecourt operators.
It’s all down to the RFID chip in the shape of a small dot on the cards which is read by the merchandiser’s hand-held scanner as the product is in the rack, meaning retailers don’t need any new equipment themselves
Through the use of the technology, according to Andrew, merchandisers will be able to complete a full stock count of hundreds of cards by design in less than two minutes, with 100% accuracy versus the current manual counting system which can take 30 to 45 minutes – it can be seen in action in the video below.
Andrew explained the convenience store and petrol forecourt sectors in which Riverside is very active – it has added almost 400 new customers over the past year– generally have very little room for greeting cards so, to keep shoppers engaged, the company adds new designs every time a merchandiser visits one of its customers, and the operational model provides consignment stock for retailers who then pay for what they sell, so they don’t have cash tied up in stock,
He stresses that in these relatively small displays innovation is crucial but, he added: “Our retailers don’t want the burden of adding new barcodes on every visit so our entire greeting card model line operates on only three which are related to price points – this is great for the retailers, but means EPOS data doesn’t provide us with the granularity of data which we need to optimise sales.
“This is not just a Riverside issue it applies to some of our competitors too. By using test stores we’ve been able to develop new ranging and merchandising strategies which are working well for our customers but we could do more, hence the RFID initiative,” he elaborated.
This improved granularity of data will enable each store’s range to be automatically analysed and improved by the merchandiser, while aggregated sales data by design will show trends and patterns and create best practice ranges automatically.
Additionally, the Riverside design team will have performance data by design which will enable them to better understand the characteristics of the best-selling designs and use these insights to inform the creative process.
Andrew estimates the new approach will grow sales with existing customers by more than 20% and improve his van sales teams’ productivity dramatically as current manual stock checks can take up to 40% of their in-call time, so merchandisers will be free to concentrate on even more business development initiatives.
“Many card suppliers have chosen not to invest in the independent convenience sector while favouring multiple grocers and online sales,” he said. “We are proven specialists in the convenience and forecourt market and believe there is a significant sales and profit opportunity when a shopper-centric approach is taken to the greeting cards category.
“That’s why we have invested in developing this revolutionary new technology which is going to provide us with real-time information and transform the overall category performance.”
Acknowledging this development as “a very exciting and innovative initiative” Andrew believes that the pilot a trial of an RFID and AI category management system “will transform not just our business but the greetings category in the convenience and forecourt sector and, potentially, other sectors as well.”
