No more stock outages!
How to optimize the presence of products on the shelf and reduce stock outages
Optimal Shelf Availability
POS data detection (cash outflows) for punctual analyzes on regular and promotional sales data, identification of Stock Breaks (OOS), promotional period tracking and Category Analysis.
In a scenario that sees the contraction in consumption and a stagnant GDP, the consumer assumes an increasingly conscious attitude towards purchasing choices, paying greater attention to ongoing promotions and limiting occasional purchases.
For the Producer, therefore, greater efficiency becomes decisive in intervening promptly to remedy any stock shortages (OOS), which represent one of the major causes of non-sales and decrease in the level of service.
The graph (source ECR Europe) shows precisely the behavior of the Consumer in the face of a stock outage: due to the non-presence of the product on the shelf (OOS) the Producer loses 46% of possible sales.
The centrality of the store
The weak link in the distribution chain
Traditional Supply Chain management systems are limited to analyzing the CeDi as a level of minimum granularity of investigation: this limits the Producer by preventing him from knowing decisive information on the status of the individual store.
We do not know precise data on Stock, on the progress of current or past promotions, we ignore the real assortments of each store; in this way the margin of error, in an analysis aimed at identifying real situations of stock outage and consequent lack of the product on the shelf, is very high.
IT detection through cash data analysis (POS)
OSA stands for Optimal Shelf Availability (or even On-Shelf Availability) and is the method used to improve the shelf availability of products: the basic idea is to focus attention on each single store, going back up the distribution chain to obtain precise and timely analyzes on its real daily activity (Promotions, Sales, Stock, Assortment etc.).
Thanks to these data, the system, combining the timely ones with the historical and summary ones, processes the sales trends (variable based on the presence or absence of a promotional campaign) of each POS, calculating with excellent precision present and future Out Of Stock situations, suggesting assortment variations or restocking plans, indicating the progress of promotional campaigns in progress or concluded (also with comparisons by similarity), always working with detailed data of each product, for each store, every day of the year.
The results achieved
Create VALUE by increasing sales volumes and improving the level of service
Features of SELL OSA
The benefits for the Logistics area
- increase in sales volumes
- daily monitoring of activities on the POS
- detection of de-listings
- error capture in reordering systems
- immediate control of promotional activities
- timely reports to the Sales Force
- optimization on volume planning
The benefits in other business areas
- verification of commercial agreements with the distributor
- punctual analysis of promotional activities in progress and planning of new ones
- improvement of the management of product categories and assortments by point of sale
- estimate and recovery of non-sales volumes
- integrated and homogeneous management of the sales data of the various distributors
- identification and correction of the main causes of stock outages
- optimization of the level of service to the consumer and consequent maintenance and / or acquisition of loyalty
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