Consumers who annually await the anniversary of a large supermarket chain do not imagine that behind the low prices, there is a large logistics team that plans and works tireless hours so that the goods are available on the shelves.
Efforts are needed by manufacturers, distributors, wholesalers, transporters, logistics operators and retailers to ensure that products are available when consumers go shopping.
Promotions like this mobilize families from different social classes, who spend hours in queues to take advantage of lower prices, forcing an efficient replacement of items to avoid customer dissatisfaction and negative exposure in the media for other potential buyers.
In the Customer Service Survey – Evaluation of the Consumer Goods Industries Distribution Service 2014/2015, carried out biannually by the ILOS Institute, with supermarkets from different regions of Brazil, it was possible to verify that the stockout level reaches 12% of the product mix offered.
In addition to planning and store supply operation problems, several studies have found that stockouts often occur due to failures in replenishing the shelf. The lack of merchandise on the shelf is one of the main causes of irritation and frustration for the customer, who may give up the purchase, switch brands or look for another retail chain. The consequences of this problem are, therefore, shared by retail and industry, which therefore need to join efforts to improve their supply systems.
In order for the replacement work to be carried out satisfactorily, the association ECR Brazil recommends:
- Have a very efficient operational structure, since the shelf stock can be completely consumed at any moment;
- Organize the rear of the store, to find, separate and replace the items sold in the shortest possible time, keeping records up to date so that shortages are not generated;
- Ensuring the presence of replenishers in sufficient numbers for replenishment needs throughout the entire period of operation of the store, with adequate qualifications and, above all, working in an integrated manner with the other teams that work in the store.
In the Customer Service Survey – Evaluation of the Consumer Goods Industries Distribution Service 2014/2015, of the 304 supermarkets interviewed, product availability and consistency in delivery times were identified as the most important dimensions of logistics service, reinforcing the importance of the theme.
Figure 2 – Importance of Service Dimensions
Source: Customer Service – Consumer Goods Industries Distribution Service Assessment 2014/2015
However, the survey results also indicate that the industries are not as attentive to the issue as they should be, since of the supermarket owners interviewed in Rio de Janeiro and São Paulo, in 2012, 40% were dissatisfied with the availability of the industry, a percentage that grew to 44% in the 2014 survey.
References
Campaign to reduce stockouts by BRL 1 Bi, 1st Fascicle – How to solve/attack the problem in your store. ECR Brazil.
Panorama ILOS – Customer Service Evaluation of the Consumer Goods Industries Distribution Service 2014/2015
