Cross-Functional Use Case: Distribution Voids / Gaps
Use Case Objective:
Address vendor concerns around Distribution Voids (Item on POG but not on shelf, or not selling at its expected rate) and Distribution Gaps (Item not on POG nor on shelf)
Use Case Benefits: Voids - Identifies opportunities at the shelf that affect sales; ensures future promotions are successful by holding full distribution; reduces risk of a “good item” being discontinued prematurely Gaps - Identifies item opportunities based on sister Brands or competitors; allows us to review the opportunity and make a more informed determination
Process/Analytical Steps:
Metrics to Review:
• Unsaleable rate • Forecast
• Sales • Shelf Capacity • Planogram Authorization • In-Stock Rate • CAO Item Location
1. Voids can occur when a store or system glitch deletes the item’s shelf capacity • Research unsaleable rates on this item at the store(s) in question. If the item had high rates, there is the potential that the store made its own decision to remove the item from their Planogram set. Generally, this is not an accepted practice, and the store should reach out through their specialist to the category to have adjustments made. • If legacy AUSA, refer to the CAO Alert reporting to see if the issue has been captured and addressed through the alerts. If not, the CAO team can push the shelf capacity to the store. 2. Sometimes an item is set up properly in CAO, but is experiencing an odd decline in sales not evidenced in other store locations • These sales voids for an extended period can be caused by a missing shelf tag or an item placed in front of the item in question. Again, the CAO Alerts assist in identifying these anomalies; however, some vendors choose to utilize their retail teams to investigate • If item has been OOS for a long period of time, ensure forecast hasn't decreased due to lack of movement during that time-frame 3. Gaps require significant analysis to ensure the item warrants attention and is really a category assortment decision; however, vendors tend to share these opportunities and can use the IRi tool to pull sister Brand analysis to make a case for the item’s inclusion.
Teams to Involve/Collaborate:
• CAO Team • Vendor’s Retail Execution Team • Category • Retail Operations • In-Stock
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