Company News

Retail Case: Why OOS really matters to you? Here it is.

by Jimmy Ho on 06/06/2017

Driving distribution of a new product launch or extending the distribution of well-established products are important to grow a business. But, without good distribution and stock control, out of stock (OOS) issues can cost you more than you think – here are some surprising results from a recent nationwide IMF audit in Taiwan.

(Nationwide Infant Milk Powder Audit in Taiwan for 5 major IMF brands, covering 85 Supermarkets: Carrefour, PX Mart, A Mart and Wellcome)

 Significant difference in the listing % of SKU even in the same range – in some cases, the difference is as much as 57%, with the weakest SKU of a range recording a 28% listing rate, while the strongest shows 85%. In the best performing range, the difference in Listing rates across the range is just 24%. Opportunities to get those unlisted stores (without all SKUs within the range) “Listed”?

 OOS rates can be surprisingly high, even for major brands with strong listing – across all brands, IMF stage 2 is most commonly out-of-stock in the supermarkets, ranging from 16% to 100%. Importantly, there were many instances where a listed brand, currently out of stock had no dummy can on display – missed opportunities to encourage consumers to defer purchase rather than try an alternative or visit a different store. 

With a clear understanding of the issues and the locations they affect, we can move on to the next step: fixing the root cause.

Using the latest retail audit technologies, it’s possible to quickly and easily compare SKU level performance metrics and access backup imagery for any location – all in real time. In a single glance, for any SKU, check; 

  • Stock levels/ OOS status
  • Current and/ or promotional pricing
  • Floor stacking, secondary display
  • …and any other metric of interest