Don’t Cover Under Your Shelf(!) During the Christmas Shopping

There is no official start date for retailers to begin launching their Christmas holiday season sales. In fact, each year, different retailers set new standards to follow so the Christmas/holiday retail sales season is dynamic and continues to evolve. Retailers should be prepared for holiday shopping seasons.

On Shelf Availability(OSA) is one of the important metric for every retailer’s performance measurement during these seasons. OSA is defined as availability of product for sale to a shopper, in the right place he expects and at the time he wants to buy it. OSA is impacted by many different factors, all along the supply chain.

Collaborative Planning, Forecasting and Replenishment are mostly used collaboration efforts between retailers and manufacturers in order to reduce the out-of-stock rates. While there are some marginal improvements, the truth is that many of the problems are self-inflicted wounds. Retailers are not constantly putting the right products on the shelves. Key reasons for this are:

  • Store replenishment procedures fail to replenishing shelves on a timely basis
  • In-store inventory counts are inaccurate
  • Forecasting and assortment processes and systems do not adequately account for local demand
  • Space planning and planogram processes are not readily adaptable to local store footprints and demand

As a result, the consumer does one of four things: buy another brand at the same store; buy a completely different type of product; look for that brand in another store; or, simply, not buy anything. If the consumer does not (and cannot) buy your product because it is out of stock, you don’t sell. And, provide an opportunity for your competitors to gain your consumers business and loyalty.

There is a lot that retailers can do to get their own store in order for better on-shelf availability while they pursue collaborative supply chain efforts. The time is now! The complexities of delivering on consumers’ omni-channel demands for seamless and consistent shopping journeys will not go away, they will only become more complex. And as more retailers gear up to satisfy these demands, consumers are becoming even less tolerant of delivery failures. The time to transition planning and store operations to accommodate these increasing demands is now, or else you will be left behind as customers shift their loyalty to those retailers who best meet their expectations. For more information on improving on-shelf availability, check Obase Replenishment – Smart Inventory Management solution.

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