Shelf Level Image Recognition: Revolutionizing POG Compliance and On-Shelf Availability with AI and Mobile Technology

In the ever-evolving landscape of retail, ensuring products are properly stocked and displayed according to planograms (POG), also known as schematics, are critical to maximizing sales and customer satisfaction. The task of maintaining POG compliance and monitoring on-shelf availability (OSA) has traditionally been labor-intensive, requiring field merchandisers to conduct frequent and time-consuming audits. However, recent advancements in image recognition technology, coupled with AI analytics, are transforming this process, offering a faster, more efficient, and highly accurate solution.

Several large consumer packaged goods (CPG) companies are now equipping their field merchandisers with image recognition technology that can be easily deployed through personal smartphones. This technology allows merchandisers to capture images of store shelves during routine visits. These images are then analyzed in real-time to assess POG compliance and identify out-of-stock (OoS) situations, particularly for high-velocity items that are crucial to maintaining sales momentum.

The true power of this technology lies in its integration with AI-powered analytics. Once an image is captured, AI algorithms quickly process the visual data, comparing it against the store's POG and it then identifies any discrepancies. This rapid analysis allows for near-instantaneous identification of OoS items and ensures that products are displayed according to the predetermined planogram.

This not only improves the accuracy of audits but also significantly reduces the time required to conduct them. In fact, field labor audit times can be reduced by an impressive 50% to 75%, freeing up valuable time for merchandisers to focus on other critical tasks.

Beyond just identifying issues, this technology also offers practical solutions. Based on the AI's analysis, automated pick lists can be generated, highlighting the specific items that need restocking. Additionally, the system can create push inventory orders at the store level, ensuring that shelves are quickly replenished without the need for manual intervention. This automation helps maintain optimal stock levels and prevents the loss of sales due to OoS situations.

Over time, the data collected through this process can provide valuable insights into the performance of individual items on a store-by-store basis. By analyzing trends and patterns, the AI can identify underperforming items and suggest adjustments to the POG to enhance visibility and sales potential. These insights can lead to more informed decisions about product placement and inventory management, ultimately driving increased sales and profitability.

Shelf level image recognition technology represents a significant leap forward in the way CPG companies manage POG compliance and on-shelf availability. By leveraging the power of AI and the convenience of personal smartphones, field merchandisers can conduct more efficient audits, quickly address OoS situations, and optimize product displays to maximize sales. As this technology continues to evolve, it is poised to become an indispensable tool in the retail industry, helping companies stay ahead in an increasingly competitive market.

Need assistance installing this technology? Contact info@apolloretail.com to speak to one of our business development managers.