On-shelf availability and lost sales: how to maximize in-store presence and impact

Running timely, effective trade marketing operations means never losing a sale and always having our products available to shoppers. But to meet that central goal, our trade operations have to be organized and equipped with information. As we will see, analysis and information let us act in time to spot problems in the availability of our products and direct specific action in the field. 

On Shelf Availability (OSA) is an important indicator that tells us whether our product was available at the moment of purchase. The problem to tackle, then, is the gap on the shelf, and we will solve it by getting a clear measurement of that indicator, one that lets us coordinate targeted action to fix the problem when and where it happens. 

It is not unusual: in some cases unavailability affects as much as 10% of purchase situations, causing obvious losses. To fix it, we have to understand where the failure sits: whether it comes from a supply gap at the point of sale, or POS, whether that failure is systematic or one-off, whether some administrative error is contributing to it, or whether the product is at the POS but in the stockroom or in the wrong place. Clearly, to do that we need faithful, clear and up-to-date information.

The second concept we will tackle, hand in hand with the first, is Lost Sales. It can also have several causes, and it is broader still, because it includes failures that are not operational or administrative but commercial. Are we underestimating a POS and creating systematic shortages? Or, conversely, are we overfeeding a POS, diverting the flow of our products to where they will not be consumed — that is, unnecessarily?

That may be one cause, but it is not the only one. Again, a real-time supply indicator that tracks how each point of sale evolves over time and consolidates that information will help us detect, understand and solve the problem. 

A geo-management tool such as GDW Trade helps achieve that operational effectiveness and can raise productivity by up to 30%, correcting problems like these — that is, maximizing sales through efficient management.

The information it gathers, and systematizes in real time around key indicators, gives us a clear, constant view of our operations so we can improve how they perform. The impact of geo-management tools like those from GoDoWorks shows up as happier, more loyal customers who find our products when they come looking for them, and therefore as higher sales and revenue.