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Maximising Shelf Presence: The Impact of Stock Availability

Updated: Aug 14

Maintaining optimal stock levels is more than just about fulfilling customer demand. It's a strategic move that affects your forward share on the shelf, the number of facings, and ultimately, your overall sales and brand image.


Let's delve into the importance of avoiding out-of-stock scenarios and how they directly impact your retail success.



The Real Cost of Out-of-Stocks

The term "out-of-stock" (OOS) refers to instances when a product is not available for purchase. These situations can be detrimental for a multitude of reasons. With repercussions on sales, not only does the Supplier lose that immediate sale, but also risks losing to competitor product. This chain reaction can significantly impact on-shelf forward share.


Out-of-Stocks and Forward Share on Shelf

Maintaining a healthy product space allocation (forward share) is a key strategy in showcasing your brand, and enhancing product visibility. Well-stocked, prominently displayed items are a significant contributing factor in your product's success. Frequently OOS products may cause retailers to rethink shelf allocation and forward share on inconsistent product availability occupying valuable shelf space.


Out-of-Stocks and Number of Facings

Product facings refer to the amount of shelf space given to a particular product. Products displayed in a present, clean, and organised format can significantly influence your sales. However, the number of facings a product has is often a function of its on-shelf availability. OOS situations can reduce the number of facings, leading to less visibility, reduced sales, and potentially, a permanent loss of shelf space.


Ensuring On-Shelf Stock Availability

Suppliers can avoid these pitfalls and ensure on-shelf availability at all times by:


  • Accurate Demand Forecasting is crucial in maintaining optimal stock levels as it requires a deep understanding of historical sales data, market trends, and seasonality, achievable with BD-Nav’s advanced analytics solutions.

  • Correct Master Data is crucial for automated replenishment systems to operate effectively, avoiding critical stock levels and OOS.

  • Real-Time Inventory Tracking provides instant visibility into store stock levels, allowing a proactive replenishment response to potential OOS instances.

  • Through retailer-supplier collaboration, replenishment support can minimise the duration of OOS instances, allowing for a win-win situation.


In conclusion, OOS instances are more than just a temporary inconvenience. It drastically affects your forward share on the shelf and the number of product facings, leading to decreased sales and diminished brand visibility. Ensure on-shelf stock availability by leveraging advanced analytics and implementing proactive inventory management strategies, both suppliers and retailers can drive success in a competitive retail landscape.


Stay ahead of the curve with BD-Nav's retail analytics solutions, designed to provide the insights you need to optimise your stock levels, enhance on-shelf visibility, and increase the rate of sale.

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