All convenience stores are aware of the impact of waste on profitability. At the corporate level, are you getting access to the waste data in a timely fashion so you can quickly remedy the situation? Store Managers are often head down busy, and don’t see how much waste is nipping at the toes of your profitability. A Business Intelligence solution brings your numbers to light, and makes sure everyone is meeting the profitability goals per store. Quickly your convenience stores increase profits through waste management and reduce your spoils, by getting the right information to your team at the right time.
In today’s C-store environment with slim fuel margins, executive teams need to efficiently capture inside sales margin dollars in order to survive. There are many ways to analyze how to cut costs and save, but how accurate is your reporting, and not to mention, how long did it take to get those results??? A business intelligence solution allows your organization to see how much waste is happening at each store, compared to every other store, compared to last year, compared to last week, compared to…well, you name it. The beauty is that the data already exists, but combine that with the flexibility, unique metrics and TA-DA, now you can access this information in a dynamic “on the fly” way. You can see that hot dogs, cups, coffee, or sandwiches are being scrapped at a higher level then what’s allowed; and management can make actionable decisions to get things back on track before time gets the better of them.
North Carolina chain of convenience stores increase profits through waste management!
One of our convenience store clients gained profitability by starting to analyze their data on hot dogs. They took a look at what was being sold and what was being scrapped or wasted per store. After a very short period of time (weeks instead of months), they made a business decision to pull roller grills out of certain stores where they were having weak profitability results. There was no reason to keep wasting the hot food items, and in reality wasting the space for other more profitably items. The Management Team agreed it would have taken them a year to make such a decisive decision in the past. Now with the right data, at their fingertips and available to analyze, they came to the decision to pull the roller grills in a timely manner saving tons of waste, time, and sunk cost. They even took it a step further with the locations that kept serving hot dogs and identified the average amount of dogs being served on a daily and timely basis. Further decreasing their waste and saving tons of wieners!
Being able to see the waste and spoils allows a C Store business intelligence client to create PAR level goals at the corporate level for each store. Corporate wide, this C store chain created a “Goal Sheet” with accurate goals for sales, waste, and PAR levels per day per store. Managers at the store can log in and see what their goals are on a daily basis based on historical analysis of their data. They have their goal planned for them from corporate, and can get back on the floor to oversee the team to make those goals happen. Getting this information to the team at the store level helps everyone be on the same page and make the company’s waste and spoilage goals happen.
Loss prevention analysis not only helps you control and track your spoilage, but it will lead to better purchasing decisions and reassurance that you aren’t over ordering or stocking-out. With the right data, Store Managers can better account for items, and be sure to keep up on inventory goals.
To learn more about how convenience stores increase profits through waste management and other areas, contact us! We’d like to share more stories that can benefit your convenience store business.
