Timing, availability and visibility, are crucial in the retail industry. However, this is easier said than done. Achieving outstanding on-shelf availability can be a challenge, with brands constantly having to compete for space.
A study by supply chain specialists IGD has explored the state of play for on-shelf availability (OSA) across suppliers and retailers, with some very interesting findings.
The importance of OSA is clearly at front of mind for both retailers and suppliers, with most businesses already measuring or planning to measure it. However, these measures don’t seem to be reaching the customer. According to research led by IGD, shoppers claim exposure to out of stock situations has risen since 2011. 64% of shoppers say they experienced an out of out of stock situation during their last main shop, compared to 41% in 2011.
However, the story gets more complex when explored at a deeper level. The report suggests that the majority of businesses are using the calculated in store stock measure, a number which although it does take in to account the stock on the shop-floor, it doesn’t specifiy whether the stock is in the back of store, or on fixture. As a result this number is not fully reliable and means that retailers are missing opportunities. And that means missing out on sales.
Whilst improvements in demand planning and inbound supplier service can help to rectify the issue, it is store execution that means the difference between the product being on shelf and available to buy, and not.
So how does a business tackle these issues? Well, with capabilities such as the bespoke DRIVE software and retailer EPoS insights, Tactical Solutions can ensure store level results are fully visible, keeping product availability at the centre of any campaign. We can check product on fixture, and if it’s not available for sale, we can make it happen.
Tie this to a focus on communication and collaboration and you have a winning formula for OSA within your business.