Introducing IRIS: Empowering CPG Manufacturers and Retailers to Dramatically Improve On-Shelf Availability
On-shelf availability (OSA) is a major problem for the retail industry worldwide. Retail industry benchmarks consistently cite out-of-stock (OOS) rates of 8-10% for non-promoted products, and as high as 10-15% for promoted items. Those OOS problems translate into billions of lost sales each year by CPG manufacturers and retailers.
But, fixing those OOS problems also presents a massive and still unrealized opportunity for the global retail industry. Based on industry research, RSI estimates that a 3% improvement in OOS performance can produce a 1% sales increase, which has the potential of doubling growth for many CPG segments.
RSi, a long-standing leader in the OSA space, has now launched IRIS, a comprehensive technology platform that enables CPGs and retailers to recapture billions in lost sales, while improving profits and consumer loyalty. IRIS is powered by three distinct modules that work to provide the world’s most proven, powerful OSA solution:
Measure – The Measure module tracks OSA at the most granular level (store/product/day), with
results aggregated to provide precise assessments of OSA performance.
Correct – The Correct module provides alerts when specific instances occur that indicate an
“imperfect shelf” and potential OOS issues. These alerts are immediately delivered to the
appropriate individual so that corrective actions can be taken to address the problem and
Prevent – The Prevent module leverages business intelligence data analytics, including artificial
intelligence and machine learning, to avoid OOS problems on the shelf before they even occur.
Using the IRIS OSA platform, 16 major CPG suppliers were able to recapture more than $115 million in lost sales last year at just one top 5 US retailer. In addition, by deploying IRIS at a major US grocer, a leading snacks manufacturer reduced its out-of-stock (OOS) events by 41% while decreasing lost sales by 63%.
According to IDC’s January 2018 Vendor Spotlight Report, The OSA Imperative in the Modern Supply Chain, “there are clearly revenue and operational benefits that individual companies can realize should they make incremental improvements to OSA.” They further state that, “OSA will be far more important in a world where online selling and direct-to-consumer delivery (often same day) increasingly become the norm.”
To learn more about how IRIS can help you solve OOS issues and maximize your OSA, check out our press release here.
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