Store clustering and adjacency analysis for a leading pharmacy chain to improve merchandizing strategy and inventory policy
Overview
Client is one of the nation’s largest institutional pharmacy companies and one of the fastest-growing privately held companies in the state of Georgia. Founded in 2004, headquartered in Atlanta, Georgia. Its partner pharmacies focus on providing exceptional client service and patient care to long-term care customers in assisted living communities, skilled nursing facilities, hospice and behavioural health group homes.
Solution
- Optimize merchandizing strategy for its cardiac and diabetes therapeutic category and reduce sales leakage due to inventory stock-outs
- Identify top stores by specific product categories and determine the top SKUs & their quantity to stock
Impacts
Client rolled out a new improved inventory policy for Cardiac and Diabetes products across Delhi/NCR
Spend on top cardiac & diabetes SKUs and on their adjacent SKUs at 45 stores of all stores was 41% of total retail customer spend
Top 10 adjacency categories in each cluster together contribute approx. 75% of total adjacency spend
