Optimal Shelf Availability
Up one levelOptimal Shelf Availability - Increasing shopper satisfaction at the moment of truth, by Roland Berger Strategy Consultants (2003)
The ECR guidebook on Optimal Shelf Availability shows retailers and manufacturers the importance of improving product availability and the right approach to making significant improvements.
Despite efforts to improve product availability for shoppers and consumers, a satisfactory level has not yet been achieved. A study of seven European countries showed that product availability is between just 90 and 93 percent. At the same time, consumer surveys have shown that consumers consider product availability to be a very important factor. This affects both retailers and manufacturers, as it could potentially lead to considerable financial losses. After all, when consumers find themselves faced with an out-of-stock, they don't necessarily simply switch to another size or form of the product in question; instead, they may switch brand, or even leave the store without buying anything. If that is the case, then retailers lose out on the entire basket.
The report describes how a holistic approach can improve on-shelf availability by as much as 50 percent. The approach consists of seven improvement levers to address the specific root causes identified. However, for any approach to be successful, regular measurement and issue awareness on the part of store management are essential. Successful approaches are described based on case examples at Kraft, Dehaize, dm, spar, L'Oreal, Cora, Auchan, Nestlé, and many others.