FACTORS LEADING TO OOS - Fastly · THE CONTINUING OUT-OF-STOCK (OOS) MALAISE FACTORS LEADING TO OOS...
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Imprecise demand forecast accuracy Inaccurate inventory data management Low level of accuracy for perpetual inventory system* Inappropriate shelf-space allocation in the sales channel Low planogram/ floor set compliance 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 other misplaced items THE CONTINUING OUT-OF-STOCK (OOS) MALAISE FACTORS LEADING TO OOS PLUGGING OUT-OF-STOCK GAPS IN CONSUMER GOODS STRATEGIC SOLUTIONS KEY BUSINESS PERFORMANCE IMPACT AREAS 8% of the items that a customer wants to buy is absent on the shelf Only 15% of shoppers delay their purchase when faced with an OOS situation For the 3rd consecutive OOS time, only 30% of customer looks for in-store substitutes while 70% move to a different store Impact on consumer/brand Impact on consumer goods (CG) industry OOS problem in the distribution centers and sales channels is costing the CG industry billions of dollars every year In North America, annual loss from OOS is $129.5 billion In Europe, stock-outs lies between 7-10% with higher occurrence for promotional products rather than regular ones Sales loss from OOS accounts for 4% of total revenue Affects order efficiency and supply chain productivity Leads to increased days of supply and slower sell-through Causes brand erosion and lost sales opportunities Extra ordering and auditing Inaccurate forecasting Negative ROI on trade promotions Machine learning, segmented and predictive data analytics Real-time collaborative platforms and social media Robotic autonomous shelf-auditing and analytics solutions Retail image recognition and analytics solutions Use of IoT data brands to provide digital location based offers Voice-controlled Wi-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 1 2 3 4 5 6
Transcript of 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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