Out-of-Stocks represent a potential sale, a chance for more revenue where a shelf sits empty. One West Coast supermarket retailer found that its biggest OOS opportunity could be narrowed to a group of just over a dozen major DSD vendors. From packaged beverages to breads, frozen to dairy, and several categories in between, these vendors represented a large part of the business and therefore had a large influence over customer experience.
The retailer identified a project champion who bridged the gap with vendors and helped to gain alignment internally. An inclusive working group was established and ReposiTrak led bi-weekly check-in meetings where successes and failures were reported.
The ReposiTrak team ranked performance in several critical areas where action could be taken. Delivery routes and delivery days were examined and recommendations were made according to shopper patterns. Stores were ranked according to OOS level and SKU counts and pack sizes were evaluated to understand what worked best, where. Outside of regular meetings, this information was readily available through dashboards for everyone involved.
At the end of the 6-month project, ReposiTrak delivered a detailed summary to the team, revealing an annualized reduction in OOS conditions of 15%. These efforts – including the algorithm-driven insights from ReposiTrak and the engagement of, and actions taken by, the retailer and vendors – resulted in $9 million in savings. In addition, the retailer saw an increase in sales during the same time period of between 7% and 10%.