ECR Europe white paper - Approaches to measuring on-shelf availability at the point of sale - 2006

2006.02.10

Publication Date: 2006
Publication Language: English
Publication Country/Region: ECR Europe
Publication Type: White paper
Publisher: n/a
Companies involved: Roland Berger
Author: Gerhard Hausruckinger


The goal: to raise productivity
Less time waiting in line, more special offers and more products actually in stock.
Right now, these are consumers' three biggest wishes. What happens when a product is out of stock? When customers can't find what they are looking for in its usual place? Surveys show that 9% of customers then don't make a purchase at all, meaning that they do not buy an alternative product either. In Europe, these 9% constitute EUR 4 billion. Yet even this figure is probably only the tip of the iceberg. If individual products or selections of products are regularly not available on the shelves, this can even cause a store to lose regular customers.
When a "loyal" family turns its back on a given store, the weekly revenue loss comes to around EUR 150. Over a 20-year period, that adds up to EUR 150,000 in lost revenues.
The average out-of-stock rate in Europe stands at 7 to 10% of the total product assortment. That is a considerable amount.
There are, however, a number of reasons why on-shelf availability is not measured in many cases. Taking measurements is seen as complicated, although it would be relatively unproblematic to refer to existing catalogs of causes. Taking measurements is also seen as expensive, although the "salvage operations" and losses triggered when an item is out of stock cannot exactly be regarded as cheap. Moreover, many companies shy away from ongoing out-of-stock (OOS) monitoring because they simply assume that they will require too detailed POS data to do so.
This white paper outlines a uniform measurement methodology that uses POS data. Based on an out-of-stock index (hereinafter referred to as the OOS index), the methodology permits more accurate comparison of the OOS rate by different categories, countries and sales channels. The method can be leveraged to initiate a continual improvement process that will ultimately increase on-shelf availability, improve the revenues of both manufacturers and retailers, and make customers happier.

Download OSA Measurement White Paper OSA Measurement White Paper


  

ECR Europe ‘06 [Stockholm]. OSA presentations

2006.02.10

Publication Date: 2006
Publication Language: English
Publication Country/Region: ECR Europe
Publication Type: Presentation
Publisher: n/a
Companies involved: n/a
Author: n/a

On-Shelf Availability – The Next Generation
ECR Italiy (achieve global) / ECR UK (IGD)
Action, Results & Learning 
100% Availability
ECR UK (Tesco, Unilever, IGD)


  

ECR Europe Forum ‘05. OSA presentations

2005.02.10

Publication Date: 2005
Publication Language: English
Publication Country/Region: ECR Europe
Publication Type: Presentation
Publisher: n/a
Companies involved: Kraft Foods, Coca-Cola Enterprise, Systeme U
Author: Jochen Rackebrandt, Christian POLGE, Jacques JOUANNEAU

On Shelf Availability improved – OSA in practice
Jochen Rackebrandt, Kraft Foods
From Factory to Fridge (Enhanced On Shelf Availability Via Store Demand Forecasting)
Sainsbury's / Kraft Foods
Implementation is key : How to reduce out of stock in store based on a collaborative partnership
Christian POLGE, VP Sales & Marketing - Coca-Cola Enterprise
Jacques JOUANNEAU, ECR projects manager – Systeme U


Download
On Shelf Availability improved – OSA in practice
Jochen Rackebrandt, Kraft Foods
From Factory to Fridge (Enhanced On Shelf Availability Via Store Demand Forecasting)
Sainsbury's / Kraft Foods
Implementation is key : How to reduce out of stock in store based on a collaborative partnership
Christian POLGE, VP Sales & Marketing - Coca-Cola Enterprise
Jacques JOUANNEAU, ECR projects manager – Systeme U


  

Optimal Shelf Availability (OSA) - Increasing shopper satisfaction at the moment of truth

2003.12.20

Publication Date: 2003
Publication Language: English
Publication Country/Region: ECR Europe
Publication Type: Bluebook
Publisher: n/a
Companies involved: Albert Heijn, LKW Walter, Vrumona, Unilever, Smith's Food Group, Procter & Gamble, Philips Lighting, Masterfoods, Nestlé, Manor Bakeries, Johnson & Johnson, L'Oréal, Kraft Foods, Danone, Fima, Gillette, Henkel, Auchan, Coop Sweden, Tradeka, Spar, Safeway, Royal Ahold, Pingo Doce, dm-Drogeriemarkt, Coors Brewers, Delhaize, Allied Domecq, Roland Berger Strategy Consultants
Author: Gerhard Hausruckinger, Hannes Thiede, Felix Hasse

by Roland Berger Strategy Consultants (2003)
osa

The ECR guidebook on Optimal Shelf Availability shows retailers and manufacturers the importance of improving product availability and the right approach to making significant improvements.

Despite efforts to improve product availability for shoppers and consumers, a satisfactory level has not yet been achieved. A study of seven European countries showed that product availability is between just 90 and 93 percent. At the same time, consumer surveys have shown that consumers consider product availability to be a very important factor. This affects both retailers and manufacturers, as it could potentially lead to considerable financial losses. After all, when consumers find themselves faced with an out-of-stock, they don't necessarily simply switch to another size or form of the product in question; instead, they may switch brand, or even leave the store without buying anything. If that is the case, then retailers lose out on the entire basket.

The report describes how a holistic approach can improve on-shelf availability by as much as 50 percent. The approach consists of seven improvement levers to address the specific root causes identified. However, for any approach to be successful, regular measurement and issue awareness on the part of store management are essential. Successful approaches are described based on case examples at Kraft, Dehaize, DM, Spar, L'Oreal, Cora, Auchan, Nestlé, and many others.

Click here to download the BlueBook

OSA Measurement White Paper


  


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