On Shelf Availability

On shelf availability, or OSA, relates to the old supply chain adage of getting the right product in the right place at the right time.  It sounds simple, but anyone in the supply chain space understands all the causal factors that can make a great plan fall apart, i.e., weather disruptions, competitive ads, raw material shortages, etc.

When on shelf availability is gone and the shopper faces an out-of-stock, shoppers are more likely to buy a substitute product which may or may not be from the same manufacturer.  Worst case, the shopper may purchase a competitive product at a different retailer or forego the purchase all together.  Depending on the type of product and the shopper’s loyalty to the product, the future sales could be permanently affected.  Due to poor data and tracking, retailer out-of-stocks continue to run at 8% to 10% and soaring to over 20% for promoted products.  

However, with actionable insights provided by VELOCITY®, you can improve on shelf availability by monitoring the status of your inventory and supply in near real-time to:

  • Reduce out-of-stock by easily identifying potential issues such as phantom inventory and distribution voids and quickly resolving them
  • Reduce costs from overstocking
  • Improve your overall margins
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