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Out of stock is a common problem for all types of retailers. It is true that they cannot maintain a very high level of service in all cases. I many cases, retailers pay all costs for carrying an item, but
still they are OOS, which causes more damages to their business. Empty shelves cause loss of sales at that point of time, but it has its long ter...
Contexts in source publication
Context 1
... 6 of the 6 SKUs OOS in the -Non response‖ category Friday About 78 percent of the SKUs above happen to have a physial inventory that were less than the system inventory record. Figure 5 below shows the percentage deviation between system inventory record and physical inventory. Positive deviations (measured in percent) means that physical inventory is less than system inventory record Although the results in figure 4.2-1 above were obtained about half a month after the primary observations at the R1 retail outlet, our findings may give some indication on the reasons for OOS for the -Non response‖ category. ...Context 2
... 6 of the 6 SKUs OOS in the -Non response‖ category Friday About 78 percent of the SKUs above happen to have a physial inventory that were less than the system inventory record. Figure 5 below shows the percentage deviation between system inventory record and physical inventory. Positive deviations (measured in percent) means that physical inventory is less than system inventory record Although the results in figure 4.2-1 above were obtained about half a month after the primary observations at the R1 retail outlet, our findings may give some indication on the reasons for OOS for the -Non response‖ category. The positive deviations suggests that OOS SKUs had not been ordered by the automatic ordering system because the system inventory record showed more quantities in-stock than actually was the ...Similar publications
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Citations
... • Demand side issues, including the study of consumer responses to stockouts [33][34][35][36][37][38]. These issues have been proven to affect store the image and brand loyalty [34]; and it has been concluded that more than 15% of customers usually decide to quit their purchase and go elsewhere to purchase a stockout product [39]; • Supply side issues, including the analyses of root-causes that explain the occurrence of OOS situations, as well as of countermeasures to improve the performance [35,[40][41][42][43][44][45]. Reasons that contribute to OOS events include situations of a poor in-store operations performance [35], poor backroom inventory handling procedures [42], misplaced SKUs [43], late delivery by a supplier [44], large product variety [28], and promotional events that lead to more uncertainty on demand [45]; some authors also claim that higher levels of the inventory make in-store logistics more prone to execution errors [28,39]. ...
... These issues have been proven to affect store the image and brand loyalty [34]; and it has been concluded that more than 15% of customers usually decide to quit their purchase and go elsewhere to purchase a stockout product [39]; • Supply side issues, including the analyses of root-causes that explain the occurrence of OOS situations, as well as of countermeasures to improve the performance [35,[40][41][42][43][44][45]. Reasons that contribute to OOS events include situations of a poor in-store operations performance [35], poor backroom inventory handling procedures [42], misplaced SKUs [43], late delivery by a supplier [44], large product variety [28], and promotional events that lead to more uncertainty on demand [45]; some authors also claim that higher levels of the inventory make in-store logistics more prone to execution errors [28,39]. ...
This paper presents a real application of a lean–green improvement initiative conducted at a large Portuguese hypermarket store. It explores how lean tools and techniques may be used to not only improve the operational performance, but also sustainability. A case study was carried out in one store of a multinational retail enterprise, with the aim of enhancing both the operational and sustainability performance in the cold meat section, one of the most relevant areas of the fresh food markets. The Gemba Kaizen event approach, which comprises three main stages, was adopted. During the workshop stage, the structured problem-solving methodology was followed, and was recorded in an A3 format. As a consequence of this project, food waste in the cold meat market was
reduced by half, whereas the out-of-stock index decreased by a third. In addition, the pilot store hit top performance within all stores of the company in Portugal, ranking first in all key indicators for the cold meat market. The lean–green scope and performance improvement procedures developed and implemented in the pilot store were later deployed to other stores of the company. This is one of the first publications regarding the application of lean management in the food retail sector for improving both the operational and sustainability performance.
