Cross-Functional Use Case: Chronic Out of Stock Management
Use Case Objective:
Identify root-cause of chronic retail out of stock issues - both during turn and promotional periods
Use Case Benefits: Identifying and mitigating the root-cause of items that are chronically out of stock will lead to the product being in-stock, and, therefore, increase sales on the item. It also helps improve our consumer perception, especially on promotional items, when they have come to depend on finding the products they need in our stores.
Process/Analytical Steps:
Metrics to Review:
1. Identify item/items that are not shipping to retail in full. Review in-stock rates at a high-level to determine how widespread the issue is. Does it impact a specific Brand? If so, isolate issue to stores sourced from a specific DC or specific stores 2. Review if product is available at the DC to fulfill retail orders in full 1. If product is not in the DC or has not been in the DC consistently, work with supplier/ISA to improve DC inventory positioning, vendor fill rate and on-time delivery 2. If product is available in DC but not shipping to stores, check item attributes. Is item in POG, is item authorized, is master data correct/are flags set correctly to enable shipping? 3. Review the details and timing of the retail out-of-stock 1. Can out of stock be isolated to a day of the week or week of the period (ex. WIC/Snap may see first of the month OOS)? Does our weekly demand profile need to be adjusted? 2. Is it only when item is on promotion/display? Is there a poor campaign reference week in RELEX being referenced? 3. Is it related to a seasonal shift? Is the system not adjusting forecasts up accordingly? 4. Are there a lot of inventory adjustments due to shrink creating out of stocks? 5. Do we have enough facings of the product in POG to maintain on-shelf availability? 4. Based on the root cause analysis, work with the necessary teams to mitigate the out-of-stock issue
• Store in stock rate / On Shelf Availability • Retail Sales
• DC to Store Service Level • Retail Forecast Accuracy • Shelf Capacity
Teams to Involve/Collaborate: • Forecast Analyst / CAO Team • In-Stock Analyst / Manager • Category • POG Team
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