Case study doal:
Reduce OOS Situations.
Actions taken:
To address the challenge of frequent OOS situations, a leading healthy snacks manufacturer in Lithuania implemented Traxlo's data-driven approach. The process involved:
Data collection: A dedicated phase to collect extensive data in various retail stores.
Identification of problematic stores: Using the gathered data, most problematic stores with recurring OOS were identified (Graph no. 1).
Identification of problematic SKUs: The analysis further extended to identifying specific products that were frequently out of stock (Graph no. 2).
Collaboration with retailer: With systematic and tendencies data, the manufacturer engaged in strategic communication with retailer to address the identified issues.
Two approaches to handling OOS situations in stores:
Inefficient approach:
Sending unsystematic data, numerous pictures, and extensive Excel files to category managers.
Dispatching merchandisers to the stores to discuss increasing order levels with store managers results in supply chain departments receiving numerous unsystematic request emails daily.
Efficient approach:
Selecting most problematic stores and presenting systematic data on recurring problems.
Utilizing tendency graphs to show retailers where problems are actually recurring and identify the precise areas needing correction.
Results:
As a result of this targeted approach, the manufacturer was able to increase minimum order quantities in the most problematic stores. This strategic adjustment significantly reduced OOS situations, ensuring better product availability and lost sales