As a baked goods supplier whose distribution process relies heavily on timely daily delivery to stores, reducing OOSs is particularly challenging. A multitude of factors can cause out of stock events, including poor weather, supply chain problems, poor store ordering, and problems with store-level pricing and shelf tags.
In 2012, this supplier’s management team launched an initiative to further reduce their already low OOS rates by improving how they collectively report on, track and measure events across key parts of the business.
The supplier began using weekly OOS reports, generated from Market6 data and analytics, to track OOS events across a variety of different organizational views.
Generated weekly, the reports quickly became the centerpiece for Monday morning business reviews and were distributed to all operations staff, including sales managers, directors, VPs and plant presidents.
Using the new information and the increased discipline around tracking and addressing OOSs, this supplier’s leaders were able to more precisely identify and fix the underlying cause of OOS problems, regardless of whether those problems related to store execution, ordering issues, manufacturing shortages, distributor issues, pricing problems, lack of shelf space or other causes.
- A 45% reduction in the number of OOS events for this supplier’s items across all stores in the past 24 months
- Improved visibility of the underlying causes of OOSs has helped focus the attention of the specific teams or managers on OOS problems that they are responsible for, enabling faster resolution and improved results