not selling enough? identify and fix root causes of out of stocks
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
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Not Selling Enough?Identify OOS Root Causes
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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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