Executive Update

Improving Floor-Ready Display Models

In this session, a panel of retail and manufacturing experts discussed reducing waste and increasing the value of floor-ready displays (FRDs), through a cross-industry project.

Participants of this panel agreed that when an FRD is successful, it can increase sales of a product dramatically and benefit shoppers. “FRDs are a way to show value to customers, and the right placement in the store can create some excitement for the consumer,” said Sam Pero, regional director of the Jacksonville southern region for Publix Supermarkets.

“As a consumer, there’s 46,000 products coming at you in a grocery store, and you start to deselect them, so designing the display really matters,” explained Mary Westerhaus, senior director of in-store experience at ConAgra Foods.

However, there are many supply chain challenges to creating a successful FRD, including forecast accuracy, lead-time for delivery and structural integrity.

“Instability of the platform is an issue,” added John Gerber, vice president of distribution at Save-a-Lot.  “There’s tremendous opportunity for packaging, and how it fits on the pallet itself.”

 “We know the value is to get them to the retail floor. The challenge is - what is the most effective way to get the display from the manufacturer through a supply chain that isn’t built for that? We need to create a platform for transportation and reverse logistics specifically for FRDs,” added Craig McPhee, Director of Warehousing at WinCo Foods.

“Nobody has unlocked a solution for these displays. Is there a better way to do it? That’s a big opportunity and we have to work together to come up with a solution,” said Dennis Donelon, senior director of customer supply chain integration at PepsiCo.

All panelists agree that the key to creating more successful FRDs is collaboration.

“Open dialogue and communication is the best way to improve manufacturer/retailer collaboration,” said Donelon. “Not only work together amongst ourselves but to get sales and marketing people involved. We need a clear vision and a goal, and figure out how to measure that goal.”

The current participants of the project include ConAgra, Food Lion, H-E-B, Meijer, Nestle, PepsiCo, Publix Supermarkets, Save-A-Lot, Supervalu and WinCo. To participate in this project, please contact Vishal Patell, senior director of marketing strategy at CHEP USA at vishal.patell@chep.com.