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OSA Opportunity: How Optimizing On-Shelf Availability Helps You Grow, Profit, and Rule



“There are clearly revenue and operational benefits that individual companies can realize should they make incremental improvements to OSA.” That’s according to the January 2018 IDC Vendor Spotlight, sponsored by RSi, The OSA Imperative in the Modern Supply Chain. “OSA will be far more important in a world where online selling and direct-to-consumer delivery (often same day) increasingly become the norm.” The IDC Spotlight discusses the ongoing issue with on-shelf availability (OSA) and the role that organizations like RSi play in helping to solve the challenge for CPG manufacturers and retailers.

Retail industry benchmarks consistently cite out-of-stock (OOS) rates of 8-10% for non-promoted products, and 10-15% for promoted items. While improvements have been made to replenishment and fulfillment capabilities for supply chain, these numbers have not budged. Clearly, OOS is a serious industry problem, but a big opportunity, too.

The IDC Vendor Spotlight outlines some key findings that underscore the OSA opportunity for CPGs and retailers. These findings include:

  • “Retailers identified improving store operations/OSA as their second-highest priority behind, and only slightly behind, reducing costs/eliminating waste.”
  • “Companies on the “bleeding edge” of new supply chain technology and business process implementation will be positioned to reap early-adopter benefits of improved OSA.”
  • “OSA will be far more important in a world where online selling and direct-to-consumer delivery (often same day) increasingly become the norm.”

 
Are you doing all you can to ensure that you always have the right products on the right shelves at the right time? If not, you could be losing out by forcing frustrated consumers to shop elsewhere. As IDC states, “Over the next decade, 90% of industry growth will be captured by companies that successfully engage directly with consumers.” This means it’s even more imperative to give customers an enjoyable shopping experience, no matter how or where they’re shopping, to make sure you’re securing that growth.

If you’re interested in learning more about the findings of the IDC Vendor Spotlight and the sales growth opportunities in maximizing your OSA, we invite you to download the IDC Spotlight HERE.

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