Product on-shelf availability is the #1 issue for grocery retail everywhere. When the product is not available, both retailer and manufacturer not only lose a sale, but also risk losing shopper’s loyalty. High costs and product wastage are also part of the problem.
The three types of product unavailability
Product is not
available on
shelf physically
Product is
not visible
Product is not available psychologically:
- Damaged packaging
- No price label or incorrect price
- Close to or past best before date
- Last item on the shelf
The high cost of
$400 billion
Worth of sales is lost globally every year due to out of shelf
$100 billion
Worth of unsold product is thrown away by retailers globally
What happens when the shopper can’t find the product on the shelf
Do not purchase item
Delay purchase
Substitute same brand
Substitute different brand
Buy item at another store
On-shelf availability level without OSA
lost profit
dissatisfied shoppers
losses across the entire supply chain
wastage of unsold product
OSA Hybrid Platform - an end-to-end AI-based solution ensuring on-shelf product availability and driving sales through process improvement across the entire supply chain
On-shelf availability level
with OSA
sales growth
optimization of processes and resources
higher shopper loyalty
optimization of inventory investment
decrease in wastage
How does
it work?
OSA Hybrid Platform solution offers a step-by-step action plan for saving sales and provides a tool for effective management of key processes at the store and supply chain levels
Real-time data collection from various sources, such as supply chain data, inventory data, point-of-sale data, external data, etc.
Validation, cleaning and enrichment of data
- Detection of anomaly in product availability
- Creation of task/notification outlining the steps for solving the issue
- Prioritization of tasks by volume of saved sales in monetary terms
- Execution of tasks by store staff or merchandisers
- Control of task execution discipline
Adaptation of business processes, e.g. auto-ordering adaptation, processing of phantom inventory, etc.
from 2.5 to 5.8% saved sales for retailer and manufacturer
Loss prevention across the entire supply chain
Detailed information on the causes of lost sales
Higher shopper loyalty to the retail chain and to the manufacturer’s brand
Covers every product category regardless of turnover
Additional profit for retailer from supplier engagement
Higher return on inventory investment (GMROII *)