Increasing category growth by managing on shelf-availability
Are you struggling to maintain on-shelf availability?
Optimising on-shelf availability is crucial for businesses as it directly impacts customer satisfaction, sales, and overall profitability. When products are consistently out-of-stock, it can lead to frustrated customers, lost sales, and potential damage to the brand’s reputation. Managing out-of-stocks effectively is a critical aspect of retail operations.
This article explores the impact of optimising on-shelf availability while managing your out-of-stocks.
Keeping your out-of-stocks at bay
In the retail world, shelf space is as valuable as gold. But keeping shelves stocked and ready for consumers is tricky. Automated stock-replenishment systems and stock-take might not keep up with real-time product availability. This is because they won’t account for damages or shrinkage.
It’s easy for a gap on the shelf without a ticket to go unnoticed in stores with infrequent stock checks. But, both retailers and manufacturers share a common goal – to avoid empty shelves like the plague. Empty shelves are the enemy of sales, wreaking havoc on the success of a brand.
Empty shelves not only mean lost sales in the moment, but can also lead to a shift in loyalty. Consumers might spot a competitor’s product next to their preferred brand and decide to try it. This shift in loyalty might even stay after their preferred brand restocks.
Consumers appreciate convenience and are more likely to engage with a product or service if it is readily accessible. However, there are flaws in maintaining full shelves using traditional methods.
Automated replenishment systems monitor inventory levels based on what’s sold and restock shelves as needed. However, this method can be prone to errors, delays, or inefficient allocation of resources due to shrinkage and inappropriate MOQ’s.
The process can be significantly improved with platforms like Purveyance. Purveyance’s “best of class” category ranging features empowers sales representatives to spot missing shelf tickets. They can notify the store’s team and ensure that products are displayed correctly.
Purveyance can identify when stock shortages or shrinkage strikes, with a clear indication of the stock that should be on the shelf. Then, sales reps turn into mighty messengers. They sound the alarm about low or out-of-stock items and discrepancies in inventory.
The real impact of reducing out-of-stocks
Large baby brand increases sales while baby sector sees a decrease
A major baby brand understood the significance of having their products readily available on pharmacy shelves. They realised that consumers often choose a competitor’s brand if their own is unavailable. They proactively addressed the issue of product space and availability by ensuring that they always had product on the shelf. This strategic focus allowed the brand to achieve significant 20%+ year-on-year growth. This was achieved during a period when the baby category as a whole experienced a decline.
Tackling out-of-stock in Woolworths
One of our global health and beauty clients effectively addressed out-of-stock issues at Woolworths using Purveyance’s out-of-stock reporting. They achieved an impressive 50% reduction in out-of-stock instances.
Shelf activity data is a powerful tool for sales reps to communicate with retailers. By showcasing this data brands can highlight challenges faced in maintaining on-shelf availability.
Shelf activities provide an essential avenue for reducing out-of-stock instances and enhancing on-shelf availability.
Maintaining on-shelf availability is crucial for businesses to ensure consumer satisfaction, drive sales, and maintain a competitive edge in the market. Optimising on-shelf availability through efficient inventory management and proactive measures can lead to increased sales, stronger brand loyalty, and overall business success.
Ask us how Purveyance can help.