Frogmi, Inc.

Newark,  DE 
United States
https://frogmi.com/home/

• Booth: 6559

We are perfect execution in your store!

Frogmi is a web-mobile task management solution that supports the critical points of the store operation by ensuring proper execution. It is designed to maximize the performance of store associates by optimizing retail field operations to boost business results.

Frogmi helps retailers enhancing in-store visibility, correct execution of processes, communication to and from stores, implementation of commercial activities, customer service, and much more.

Since 2011, Frogmi's vision has been to reinvent the point-of-sale operation by providing its customers with a Software-as-a-Service (SaaS) solution that is easy to use and fast to implement. Our platform delivers new capabilities to your teams to take them to the next level. Discover how retailers improve store performance with a 360° task management platform.

Learn more at frogmi.com

 Press Releases

• Fighting food waste with AI and SKU-level task management (Dec 07, 2021)

  Worldwide, food waste is one of the main challenges facing modern society. FAO studies indicate that 1/3 of the food produced worldwide is wasted. According to The Guardian, levels reach 45% of total production in the US; 35% of seafood, 30% of cereals, and 20% of meat and dairy products each year.  

  In parallel, the impact of Covid-19 has exacerbated food insecurity across the world. FeedAmerica studies show that 1 in 6 Americans lack reliable food access, while paradoxically, tons of food that are fit for consumption are wasted every day. 

  Food waste also has an environmental impact. We are talking about the resources used for production and transportation, such as soil, water, and energy. According to ReFed’s analysis, the cultivation of uneaten food is responsible for 14% of the total potable water used and 4% of greenhouse gases in the US. 

  The effect of food spoilage does not end there. It also has economic consequences. According to The Guardian, in the United States alone, 218 billion dollars a year are lost in producing, processing, and transporting food that is not consumed, equivalent to 1.3% of the country’s GDP.  

  For food retailers, such as supermarkets and C-stores, food waste represents one of the biggest challenges in inventory management and store operations going forward. They must keep in mind a crucial factor for their industry: perishability. Unlike other retailers, the food area handles a wide assortment of products with low shelf life, such as fruits, vegetables, and bakery products — and the more varied the mix of fresh produce, the greater the retailer’s risk of food waste.

  Today we see how the triad of economic, social, and ecological factors push retailers to take responsibility for waste reduction as a global improvement opportunity. Fortunately, technological solutions come to support stores to prevent, control and reduce food waste. 

  Retailers tackling food waste 

  Retailers have a pivotal role to play in the fight against food waste, given their strategic position between producers and consumers.  Here are three areas of work that retailers should focus on to make a difference. 

  Demand planning

  The demand planning system is the first step in the supply chain and is directly related to each store’s product inventory level and its risk of shrinkage. Excessive demand forecasting will generate excess inventory in the stores. If these products are not purchased, the retailer may be forced to implement markdowns to encourage consumption, directly affecting margins. Excess inventory can eventually lead to product spoilage and its consequent economic losses and ecological impact. 

  Inventory analysis with AI

  Let’s assume that the retailer has the right inventory level, thanks to its excellent demand planning and supply chain management. The next step is to manage this inventory in the best way to prevent product spoilage. A robust analytics system, integrated with AI and machine learning, will help retailers understand when a product is at risk of being wasted due to low turnover. 

  Reliable SKU-level data will be essential for algorithms to deliver quality analysis to support management and increase the chances of avoiding waste. 

  Store operations

  Once inventory planning and data analytics are in place, they must be translated into reality: the stores’ everyday operations. 

  The use of AI will provide retailers with information about the risk of shrinkage. But knowledge without management does not achieve results. It is vital to have a technological tool like Frogmi, which allows task management at SKU-level in each store. 

  When selecting technology, retailers must consider that store associates’ days are overloaded with tasks, making time an increasingly scarce resource. Therefore, to achieve effective management that limits food waste, a user-friendly, action and product-oriented solution must be implemented.

  The advantages of an SKU-level task manager

  An SKU-level task manager, as ShelfManager, feeds directly into the AI analysis results to generate automatic product review tasks for every store. In-store personnel receives the tasks to take action to prevent product shrinkage in the mobile App. Frogmi indicates which products need to be checked at SKU level according to the store’s inventory. Hence, each store receives accurate information for management, avoiding wasted time evaluating what to check and where. Tasks can also be prioritized so that the store operation knows where to focus management for the most significant impact. 

  The flexibility of the tool and the integration of logic make Frogmi a simultaneous control and management solution. On the one hand, the task is sent to perform an SKU evaluation. Staff can be asked to review the status of products at risk, such as validating expiration and order dates by shelf life or FEFO (First Expires, First Out). In this way, the store can improve visibility and control of the situation. In addition, the task manager allows management of the product and the findings made while the product is being reviewed. For example, the store can be asked to report its actions in each case, such as activating a new promotion, donating, or reducing products. Thus, shrinkage risk management goes beyond information, encouraging decision-making and problem-solving from the store. 

  Implementing task management technology tools such as Frogmi also opens spaces for measuring results and creating KPIs, such as the level of shrinkage, activated promotions, sales, and management of products at risk of shrinkage. Our integration with native business intelligence (BI) dashboards provides fast real-time visibility of results for stores and headquarters. 

  Frogmi is a robust and easy-to-use application. Its implementation in conjunction with advanced analytics helps retailers increase margins, raise productivity, and decrease shrinkage. With the ability to manage tasks at the store and SKU level, retailers can improve their customers’ experience by delivering fresh and varied products while fighting food waste.

• Technology for an effective shelf replenishment process (Dec 07, 2021)

  Covid-19 has brought to light the biggest challenge for retailers: maintaining stock and replenishing products inside stores in a scenario of highly volatile demand. Faced with this level of uncertainty, it became common to see images of supermarkets and stores with stocking problems, empty shelves, and dissatisfied customers.

  The current context has put pressure on retailers, making it increasingly evident that to deliver the best service to customers and, consequently, avoid loss of sales, it is necessary to prevent stock issues.
  To manage this challenge, the first step is to understand the problem and differentiate between two basic replenishment concepts: Out-Of-Stock (OOS) and On-Shelf Availability (OSA). Although both terms refer to supply and availability issues of a product in the store, they have significant differences to keep in mind.

  • Out-Of-Stock (OOS): according to Thomas W. Gruen and Daniel Corstenen’s “Comprehensive Guide to Retail Out-of-Stock Reduction in the Fast-Moving Consumer Goods Industry”, there are several definitions for OOS and no general agreement in the industry. However, a globally accepted definition corresponds to the metric of when a retailer intends to have a product available for sale, but there are no physical units in the store. The stock level of the product in the store and back store is equal to zero.
  • On-Shelf Availability (OSA): refers to the metric that describes when a retailer intends to have a product available for sale and the product is on the shelf for the customer. That is, when a consumer wants to buy, the product is available and exhibited within reach.

  At first glance, OOS and OSA could be confused as the same concept. However, there is one key point that sets them apart: the attention on the customer experience. OOS puts the focus on the product and its level of inventory in the system. In contrast, when we talk about OSA, the focus is on availability to the customer. The discrepancy between the two terms and their perspective is evident when the product is in stock (stock greater than zero), but it is not correctly displayed for the consumer to purchase. This can happen for various reasons, such as damaged products, stock left in the back store, in the warehouse, located on the wrong shelf, or in a customer’s cart.

  The effect of stock-outs

  Let’s be clear: OOS and OSA problem is a waste of time, money, and energy for the retailer and the customer. But it also has a long-term implication. They both contribute to customers switching brands and retailers to meet their needs.

  According to Efficient Consumer Response Europe (ECR Europe), when a consumer faces a stock-out on the shelf, they have several behavioral alternatives: buy another brand, change stores, delay the purchase, buy a smaller format, or simply abandon the purchase. On average, 21% of the time will decide to switch stores, while 9% will leave the store and abandon the purchase. According to a Grocery Manufacturers Association (GMA) study, these numbers are even more overwhelming in the U.S. market, where the decision to shop elsewhere rises to 31%. In other words, every time a customer faces a stock-out, the store perceives a direct loss with a 40% probability. If we also add the loss associated with selecting a smaller format (16%), retailers lose sales half the time a consumer faces an OSA.

  
  But how frequent are in-store and on-shelf out of stocks? Studies show that retailers are far from delivering near-perfect fulfillment. OSA studies in Europe show an average stock-out rate of 7.1%. This figure exceeds 30% when it comes to promotional products. On the other hand, according to studies by the GMA, the OOS rate is around 8% in the United States, with no significant variations in recent years. Surprisingly, these figures show that, in practice, a customer will not find 1 out of every 12 items they intend to buy.

  The level of OOS and OSA of a store has severe repercussions on service level and sales. According to the GMA study, an average retailer loses approximately 4% of sales due to stock-outs.

  Using technology to support replenishment

  At Frogmi, we know that making the distinction between OOS and OSA opens up a world of possibilities to improve stores’ compliance with stock levels. In fact, according to the ERC study, ensuring correct stock and shelf availability depends 85% of the time on internal store processes. Technology plays a fundamental role in having products permanently available, supporting the buying process, and increasing sales.

  In our experience, the key point is the preventive and corrective identification of store and on-shelf stock-outs to activate the replenishment process.

  Corrective identification refers to the ability of stores to discover when a product is not meeting the correct stock on display. On the other hand, preventive identification relies on statistical models and artificial intelligence (A.I.) to assess whether a product is out of stock or at risk of being out of stock.

  Platforms such as Frogmi enable both sides of the replenishment process simultaneously: corrective and preventive. It provides new capabilities to store teams to identify when a product is out of stock quickly and easily. The task management tool sends immediate tasks to the warehouse or back store so that the product can be picked and sent to the sales floor, activating the replenishment cycle. This process is leveraged on store employees, who can continuously raise OSA incidents throughout the day, avoiding breakage during the store’s opening hours.
  Regarding OSA prevention, Frogmi’s advanced analytics system identifies sales anomalies that raise alarms and trigger tasks on the sales floor. Hence, stores can assess those critical products and check if they are correctly displayed and adequately stocked.

  Even though there are tools that can support the identification of stock-outs, it is always good to keep in mind who is actually doing the work. The stores’ personnel has limited time and resources to perform their tasks. Their capacity for execution is limited. The use of technology can go even further, prioritizing tasks based on strategic criteria for the business, such as opportunity cost, significant sales, or must-have products. In this way, stores can make efficient and effective use of their resources and ensure on-shelf availability.

  The use of technological tools in the replenishment process will increase product availability by 4 to 6 points. At the same time, this availability for the customer will promote sales, with an estimated effect of 2 to 3 points of sales growth, according to BCG Group analysis.

  The use of new technologies will be a fundamental pillar for retailers seeking to reach the next level. The replenishment process is becoming increasingly relevant to consumers. Eliminating stock-outs will be a basic requirement to deliver an adequate service level to enable a successful strategy and increase sales. Using technology in these key processes can increase operational efficiency, boost sales, and, most importantly, improve customer satisfaction.

• Emerging technologies: using AI to identify phantom inventory (Dec 07, 2021)

  The use of technology in retail is not new. However, in recent years, we have seen an increase in its benefits and possibilities within stores. The digital world is here to stay, and retailers must be at the forefront to make the most of these new tools that have become indispensable in decision-making, process improvement, and taking advantage of the opportunities it offers. 

  The problem of supply is a reality for all retailers, which goes beyond customer dissatisfaction and lost sales. Companies make great efforts to design products, strategies, and campaigns. However, this effort will be in vain if the product is not available on the shelf for the customer. 

  In this context, retailers are paying more and more attention to inventory management and the replenishment process. But what about managing phantom inventory?

  Phantom inventory is when the system shows positive stock for an SKU or item, but the store, in reality, has no units of that SKU, or the product is not visible for the customer to purchase. In other words, it refers to products that the system thinks are available to the customer, but in practice, they are not. They are like ghosts since they appear in the inventory system but do not exist on the shelf. 

  These discrepancies between the actual inventory and the one reported in the system can arise for several reasons. According to a study conducted by MIT Supply Chain Management, among the most common causes are the following:  

  1. Inventory errors in the sale: mistakes can be generated when scanning the products when making the sale. This is a common situation in products with varieties, such as different yogurt flavors. 

  2. Errors in receiving inventory: are generated when products are received without a detailed review. For example, the entry of products in pallet format or grouped instead of considering the unit. In these cases, the discrepancy can be generated when entering and confirming a quantity different from the physical amount in the system.  

  3. Operational execution and compliance: Non-compliance with procedures and protocols can lead to phantom inventory problems when, for example, products are left in the warehouse or backroom and not on the shelf. Products are left out of sight in the warehouse. It can also happen due to damaged or shortage products that were not recorded in the system.

  4. Shrinkage: inventory reduction can be caused by loss, theft, damage, or product consumption inside the store or warehouse by employees or customers. 

  5. Misplaced products: both store personnel and customers can cause some products to be misplaced. It can happen because products are stored or displayed on another shelf, hidden behind similar products, or moved from their original place by customers inside the store. 

  The impact of phantom inventory in retailing 

  In our previous blog, we discussed the impact of out-of-stocks on the final sale, introducing the term Out-Of-Stock (OOS) and On-Shelf Availability (OSA). 

  Retailers have visibility of stock through their inventory management systems. OOS detection is done from the same system, as it contains information on SKUs that have stock equal to or less than zero. 

  Studies show that, in general, the inventory management system reveals stock problems for 2% of SKUs. This stock-out level could be considered the tip of the iceberg, as studies by the Grocery Manufacturing Association (GMA) and Efficient Consumer Response Europe (ECR Europe) show that the stock-out level is 8% in both the United States and Europe. 

  The challenge of phantom inventory lies here, as 75% of on-shelf stock-outs are not reflected in the system. 47% of cases are due to a lack of stock at the store or backroom (hence, the inventory level recorded in the system does not match the stores’ reality). In the remaining 53% of cases, the problem arises because the store has inventory, but the product is not available within reach of the customer for sale.

  According to the same GMA study, a retailer faces a 43% loss of potential direct sales when no stock is available on the shelf. Thus, the impact of stock-outs due to phantom inventory in retail would amount to a direct loss of 2.6% of sales. 

  AI to identify and manage phantom inventory

  The use of artificial intelligence (AI) in retail is on the rise. According to studies by Juniper Research, investment in this sector will reach $7.3 trillion by 2022 in areas such as customer service, automated marketing, and demand forecasting. This projection could be exceeded given retail’s ability to adapt to pandemic-driven changes in consumer habits. 

  According to Boston Consulting Group (BCG), the increased use of AI in retail is critical to driving business revenue. AI allows retailers to generate and evaluate forecasts considering variables in several scenarios, such as demand, supply, inventory, pricing, and logistics. In addition, thanks to this technology, large databases can be analyzed in a short time, boosting decision-making based on real-time information. 

  The development of technology has enabled the incorporation of AI-based replenishment systems. As we saw earlier, the causes of phantom inventory are varied, making its management a complex task. Given this, AI has focused on analyzing the symptoms of phantom inventory, such as sales anomalies. 

  AI systems have significant advantages, as they perform a statistical analysis to evaluate the probability of an SKU being out of stock. These systems integrate a high number of variables and Machine Learning algorithms, which identify data patterns. 

  Based on this analysis, it is possible to detect if the sale of a product is anomalous. We speak of anomalous sales when the actual sales of a specific SKU do not match what was planned by the demand projection system. Under AI analysis, it is unlikely that these products have zero sales if they are available on the shelf, so it is inferred that there are phantom inventory problems. 

  Furthermore, a notification system can be added to the probabilistic analysis. Then, an automatic alarm will be triggered to tell store personnel which SKUs have phantom inventory issues and should be checked in the backroom for shelf replenishment.

  Frogmi’s global vision goes beyond problem reporting and alerts. Frogmi offers a complete SKU-level product management solution that considers manual replenishment, specific notifications, and SKU-level tasks generated by artificial intelligence. Thanks to Frogmi’s integrated solution, the information does not remain stagnant in a report or email but is taken directly to the stores to be managed. The ultimate goal is to have a complete vision that allows preventing, identifying, and addressing possible stock-outs as soon as possible to deliver the best availability and increase sales.

  At Frogmi, we know that the implementation of task management tools integrated with technology and AI solutions are welcomed by store personnel, as they deliver valuable information oriented to execution with concrete objectives. 

  Although it often goes unnoticed, phantom inventory comes at a high cost to retailers. Fortunately, the technology to identify and manage it is already available through AI and in-store operation platforms. All that remains is to join this trend, so phantom inventory problems become a thing of the past. 

• Technology to improve product availability in Dark Stores (Dec 07, 2021)

  All sales projections made it clear that online commerce would boom. According to Statista, “E-commerce sales worldwide will expand frenetically in the coming years. In 2018 they reached US$2.8 trillion and are expected to increase to US$4.9 trillion by 2021.”  However, no one expected to face a pandemic and its effects, which have accelerated the growth of e-commerce, surpassing all expectations. 

  Although some retailers saw sales declines during the pandemic of up to 60%, supermarkets with online sales saw considerable progress, reporting growth of up to 300% in March 2021. 

  Supermarkets also benefited from the development of grocery delivery, which has a projected annual growth of 30%, according to studies by Civic Science. This service has been on the rise as consumers find it attractive to select items online and receive them at home, scheduling the day and time, allowing one of the week’s chores to be done from the comfort of home. 

  Along with the growth of grocery delivery, Dark Stores are emerging, allowing supermarkets and other retailers to have exclusive space to store and prepare products for e-commerce. This format, which has already been adopted by major retailers such as Bed, Bath & Beyond, Walmart, and Carrefour, has several competitive advantages. It minimizes operational and housing costs for companies and improves inventory accuracy. But the most significant benefit is felt by customers who get faster delivery, with promises of getting their products in less than an hour. 

  Retailers must be prepared to face some challenges that arise within this new dynamic. Among them, studies such as “Leveraging the physical network of stores in e-grocery order fulfillment for sustainable competitive advantage” highlight the major factors to be considered: integration between online and physical sales channels, logistics coordination, and inventory management.

  Product availability in Dark Stores

  Dark Stores satisfy an online shopping experience, but with physical product delivery. Inventory management is critical to meeting the expectations of consumers, who expect fast delivery and immediate availability. Irregularities in the store’s inventory system or products are hidden in the backroom can generate errors at the time of sale or picking, disrupting the shopping experience. 

  When a product purchased by the customer is not available, it will directly affect indicators such as found-rate and fill-rate. The first KPI refers to the availability rate of purchased products. That is, how many products from the customer’s basket were found in the store. The second refers to the rate of full baskets. It measures how good the retailer is at delivering a complete order to a customer. Both metrics are critical, especially in competitive industries such as supermarkets, since if one retailer cannot provide the product, someone else will.  

  Measuring found and fill rates helps retailers know how well they can meet customer demand. It also provides information on how inventory is managed and how effective they are in fulfilling customers’ orders. 

  Using technology to improve KPIs

  Dark Stores can find a great ally in the use of technological tools. Frogmi allows identifying shelf availability issues manually through an easy and intuitive application. The same Dark Store personnel who are picking products can identify and report stock shortages on the shelf. In this way, the available stock can be monitored simultaneously with the preparation of customer orders. 

  The application is native to Andriod and iOS, so it works on employees’ personal devices (such as smartphones) and specialized hardware such as PDAs. Its adaptability to different platforms is an undeniable benefit, enabling a massive and simple deployment of the tool within a familiar user interface. 

  Another pain for Dark Stores, and retailers in general, is that shelf stock-outs occur throughout the day as employees pick the orders. Some shelf stock robots and verification systems work at the end of the day. Once the store is closed, they go through the aisles and provide a report indicating which products are missing and need to be replenished. However, Frogmi can be used parallel to the picking process, expanding the identification of stock-outs to the entire workday. It is not necessary to wait for the Dark Store to close to recognize stock-outs. Thus, the merchandise replenishment is done continuously, improving results. 

  The use of technological tools will help stores to improve indicators such as found and fill rate. Remember that low performance on these indicators increases the risk that the customer will not buy or try another retailer’s service. Delivering the best shopping experience is key for the brand to continue to grow and avoid the loss of sales associated with the disappointment of not finding the desired product. 

  Retailers have worked hard to achieve a high-level customer experience in their physical stores. Now they have the challenge of ensuring they deliver that same level of service through their digital channels.

  They need to have the right stock available for order-takers and improve KPIs such as found and fill rate to achieve their promise. Technological tools such as Frogmi are an undeniable ally to achieve this goal.

• Omnichannel in stores: a stock and implementation challenges (Dec 07, 2021)

  In recent times we have witnessed the transformation of the consumer with an accelerated digitalization, caused by the growth and emergence of new technologies and the confinement and pandemic effect, which forced many brands to start operating under multichannel strategies.

  While store visits fell and the e-commerce boom began, the reopening of physical stores has allowed us to see how people have started to return to the stores. The reopening has created a new opportunity: facing hybrid consumers looking for consistency between what they know about our brand and what they expect to see in the store.

  When we talk about hybrid consumers, we refer to those who know the brand and how it operates, both digitally and physically—an informed consumer looking for the same shopping experience across all channels.

  According to a study by Káwesqar Lab, at least 89% of consumers will continue to use the physical format to shop, and within this, 66% will opt for mixed formats, shopping omnichannel or hybrid (Ecommerce Tracker Lab June 2021 – Kawésqar Lab).

  Moreover, we know that June has been the month that has registered the highest number of visits in shopping centers in 2021, increasing by 3 points the qualification of affluence to stores (source: Getin Study “the renaissance of physical stores 2021”).

  This new context and changes in the consumer’s shopping style result in a direct challenge in productivity, stock assurance, and implementation to meet the current needs of shoppers and increase our average tickets.

  Stock challenges

  Considering the new consumers, the stocking challenge means that each store must ensure the availability of key items. For example, having stock of sizes according to the demand of the geographical location of each store, having the color curve for each product, and finally that those critical SKUs for the season or that are in online presence, are also available in our physical stores.

  So, the stock challenge goes beyond just “having products” but must generate an intelligent planning and demand projection system, together with a sound logistics system that coordinates all processes efficiently. This requires technological platforms to support the operations as a whole, helping to systematize compliance at all levels in the store.

  For stores, the challenge goes beyond the basic concept of the system’s stock. To achieve sales, the product must be available at the customer’s fingertips. It is essential to ensure that all the efforts made to ensure assortment are reflected in the consumer’s eyes, avoiding display shortage in the store. In other words, products should not be hidden or forgotten in the backroom but should be correctly displayed on the tables, wall displays, and cabinets, allowing them to be sold at the right time.

  A technological tool, such as ShelfManager, can support stores in identifying the need for replenishment on the sales floor at SKU level so that the product is always available in front of the customer.

  Implementation challenges

  Currently, the average time customers spend in a store is 11 minutes per person (source: Getin Study “the renaissance of physical stores 2021”). The big questions to ask ourselves are: How do we implement with the customer journey time in mind? How do we win over the customer in less than 11 minutes?

  If we think about the customer journey and take advantage of every minute of their visit as an opportunity, it is essential to consider the role played by promotional activation. This must be aligned across all communication channels in line with the company’s strategy. In addition, unique in-store opportunities can be generated to confirm and leverage the consumer’s decision to visit our stores physically.

  Implementing on time and efficiently starts by ensuring communication with the store so that guidelines from different business departments, such as marketing and visual merchandising, reach the store and are correctly implemented.

  In contrast, we often encounter problems of visibility and actionability to correct possible errors in these implementations, such as lack of product, POP material, or poor execution of the planogram or display, among others.

  Platforms such as Frogmi allow us to send implementation tasks with all the relevant information to be executed in-store, guiding them to ensure the reception of the information and proper execution.

  Considering the rise of hybrid consumers, stores must keep up with the pace of promotional activities in the digital world. Hence, the growing relevance of communication to and from stores.

  Technologies such as Frogmi allow HQ to receive real-time results, with valuable information such as photographic evidence. In addition, since Frogmi is a web-mobile platform, it is possible to access this information from wherever you are, thus eliminating the need for physical store visits by the areas in charge to corroborate the execution.

  ​​ An example of productivity with an omnichannel focus.

  Based on the above, we know that increased competition and omnichannel demand greater flexibility and agility in promotions and activations, along with the need for fast and effective communication.

  One retailer that today is betting on introducing Frogmi technology to its processes and workflows is La Polar. Its Operations Manager, José Ramón Sánchez, states that “The teams feel more satisfied, the level of service has improved, the products codes match, the process iteration is reduced by half, life is simplified, and everything is faster.” 

  The contribution of technology to support retail strategy is driving and achieving faster and more effective communication, impacting team productivity. It enables staff to carry out all planned activities quickly and effectively while at the same time generates real momentum for the store’s omnichannel strategy.