factors leading to oos - fastly · the continuing out-of-stock (oos) malaise factors leading to oos...

Imprecisedemandforecastaccuracy

Inaccurateinventory

datamanagement

Low level ofaccuracy for

perpetualinventorysystem*

Inappropriateshelf-spaceallocation in

the saleschannel

Lowplanogram/

floor setcompliance in

the store

In partnership with

*Perpetual inventory system is a modern-day inventory control system that help businesses to keep a real-time

account of inventory on hand. This method of accounting is realized through the use of computerized POS systems

and enterprise asset management software and is credited for preventing stock-outs.

Robots named Tally can audit shelves for OOS and othermisplaced items

THE CONTINUING OUT-OF-STOCK (OOS) MALAISE

FACTORS LEADING TO OOS

PLUGGING OUT-OF-STOCKGAPS IN CONSUMERGOODS

STRATEGIC SOLUTIONS

KEY BUSINESS PERFORMANCE IMPACT AREAS

8%of the items that a customerwants to buy is absent on the shelf

Only 15%of shoppers delay their purchase whenfaced with an OOS situation

For the 3rd consecutive OOS time,

only 30%of customer looks for in-storesubstitutes while 70% move to adifferent store

Impact onconsumer/brand

Impact on consumergoods (CG) industry

OOS problem in the distributioncenters and sales channels is costingthe CG industry billions of dollarsevery year

In North America, annual loss from

OOS is $129.5 billion

In Europe, stock-outs lies between

7-10% with higher occurrence forpromotional products rather thanregular ones

Sales loss from OOS accounts

for 4% of total revenue

Affects order efficiencyand supply chain

productivity

Leads to increaseddays of supply and slower

sell-through

Causes branderosion and lost sales

opportunities

Extra orderingand auditing

Inaccurateforecasting

NegativeROI on tradepromotions

Machine learning,segmented and predictive

data analytics

Real-timecollaborative platforms

and social media

Robotic autonomousshelf-auditing and analytics

solutions

Retail imagerecognition and analytics

solutions

Use of IoT databrands to provide digital

location based offers

Voice-controlledWi-Fi-enabled wearable

devices

STOCK CHECK

Sources:1. http://www.retailwire.com/discussion/retailers-suffer-the-high- cost-of-overstocks-and-out-of-stocks/

2. ECR Roland Burger data, http://www.biz-development.com/Sales/4.18.3. category-management-stock-out-effects.htm

3. Wipro Report ‘Retail Out-of-Stock Management: An Outcome-Based Approach’

4. http://www.askuity.com/7-root-causes-out-of-stock-retail-intelligence-addresses -industrys-enduring-problem/

5. http://www.askuity.com/7-root-causes-out-of-stock-retail-intelligence-addresses-industrys-enduring-problem/

6. http://www.biz-development.com/Sales/4.18.3.category-management-stock-out-effects.htm

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