On Shelf Availability

Retail Out-of-Stocks (OOS) are a large and costly problem for retailers and suppliers. The cost is lost sales and consumer dissatisfaction. The 2002 GMA Worldwide Retail OOS Study measured the extent and cost of OOS:

• Average US OOS rate: 7.9%
• Average US Promotional OOS rate: 15-16%
• OOS duration:  55% >1 Day  19% >3 days
• Net retailer and supplier loss: 3.9% and 3.0% respectively
• Consumers will cease to shop at stores where they encounter repetitive OOS’s

OOS Causal

Studies determined that 70-75% of OOS are the result of breakdowns of in-store practice. Key causal:

• Retail marketing
• Inadequate information to support forecasting, replenishment, ordering and shelf maintenance
• Inadequate training, lack of accountability and standard process and practice
• Retail store labor reductions

OOS Solutions

Studies identified solutions that improve On-Shelf-Availability.

• Day/Store OOS measurement
• Standardize best process and practice
• Merchandising solutions
• Efficient/Synchronized inventory movement
• DSD: Synchronized store merchandising and product delivery

The 2002 GMA Worldwide Retail OOS Study can be accessed at:
http://www.uccs.edu/~tgruen/research.htm

For more information please contact your Kraft Customer Supply Chain Manager.