Not Selling Enough? Identify and fix root causes of Out of Stocks

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Not Selling Enough? Identify OOS Root Causes

description

Out of stocks plague the consumer goods industry and continue to impede sales. An estimated 75% of them are rooted in retail operations. View this deck to learn what you can do about it.

Transcript of Not Selling Enough? Identify and fix root causes of Out of Stocks

Page 1: Not Selling Enough?  Identify and fix root causes of Out of Stocks

Not Selling Enough?Identify OOS Root Causes

Page 2: Not Selling Enough?  Identify and fix root causes of Out of Stocks

OOS is a huge impediment to retail sales.

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In-Store Execution is Broken at Most Retailers.

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Why?

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Retailers are busy.

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Retailers are lean.

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Only 3.7% have accurate fixture level POG Information.

Source: RIS News 2013

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This at a time when store-specific POG’s and assortments are more important than ever.

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And we know a 10% increase in POG Compliance will drive OOS

lower by 1%Source: Gruen & Corsten 2008

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That 63% of stores still use spreadsheets for in-store execution is not helping.Source: RIS News 2013

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Finally, most retailers don’t do well at measuring in-store

execution performance.Source: RIS News 2013

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So what can you do about it?

Solving for Sales…

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1. You’ve got to have feet on the street.

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2. You’ve got to have technology to focus your field

team on high-velocity, strategically crucial, never-out

SKU’s.

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3. You’ve got to have technology to make it easy to

collect and analyze what’s found in the field.

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Now we go to work. When a field rep finds an OOS…

Specific Strategies…

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Does the store have product? You may have a business case for more space, or may need more coverage in this store.

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No product in the store? You may have a business case for

more safety stock, higher volume / more frequent

replenishment.

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Is the POG wrong? Just fix it.

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Is there poor item management? Fix your tags, holes, selling

environment.

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Is there poor inventory management? Cycle Count and

fix the Perpetual Inventory accuracy.

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So what’s the size of the prize? 76% of shoppers decide in the store, 55% make unplanned

purchases.Source: POPAI 2012

Is it worth the cost?

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If you’re not on the shelf, your out of business.

Source: POPAI 2012

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How do you find these issues, schedule them to be fixed, and

follow up to make sure they actually got fixed?

Fix root causes to win!

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