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The Out-of-Stock ‘Myths’ That Lead to Billions in Lost Sales



You may have already read on this blog, or in our recent press release on the launch of IRIS, RSi’s leading on-shelf availability (OSA) solution, that industry benchmarks cite out-of-stock (OOS) rates of 8-10% for non-promoted products, and 10-15% for promoted items.  Clearly, OOS is a massive, global problem for CPG manufacturers and retailers, who are losing billions each year when consumers can’t find the products they want on the shelf.

But, even in the face of these brutal statistics, many retailers and CPG suppliers persist in believing the “myth” that their OOS rate hovers at around 2%.

No doubt you have heard some of the other OOS myths, including:

Myth #1: Improving my forecast accuracy will lower our OOS rates.

Myth #2: Implementing a multi-echelon inventory optimization solution will reduce OOS.

Myth #3: Retail operations and merchandising teams already address every OOS problem.

Believing these myths and not taking the right corrective actions may be worsening your OOS problems. And, as consumers increasingly rely on local retailers to fulfill online orders, and the “click & collect” trend rises, ensuring that your products are consistently available on the shelf is more important than ever before. Indeed, your bottom-line depends on it.

RSi has developed a new white paper, “Out-of-Stocks: Debunking 7 Myths Around Store Availability,” that will enable you to start making the right moves today to recapture the real money and shopper loyalty your company is losing to OOS.

Check it out and learn how you can and grow, profit and rule – from supply chain to shelf.

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