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Infographic

How to Streamline Stock

Replenishment

HOWTOPUTANEND
TOOUT-OF-STOCK
PRODUCTS

THECOSTOFNON-AVAILABILITY
Theimpactof
stockouts
becomesworse
8% witheach
occurrence...
istheaverage

stockoutrateofretail
products. buv

Doesnotbuyorbuys

72%
ofstockoutsare thiscouldbe
causedbyfailuresin theequivalenttoa 3rdSTOCKOUT
theretailers
4%lossinsales

+STOCK=OUT-OF-STOCKThisisthefirstthoughtofthe
leaderstoguaranteethe
products'availability.

However,increasedstocksdonotsolvethe
shortagesontheshelves,infactthis:
•Increasesthecomplexityoflogisticsoperations
Inthebackroom

Increasesdamagedgoodsasaresultofhandling
difficultiesandsearchingforitems.

Reducesteams'timespentwithcustomersand
onreplenishinashelves.

HOWTOSTOPPRODUCTSBECOMINGOUT-OF-STOCKIN-STORE?
PRODUCTSAREINSTOCKBUTNOT
AVAILABLEONTHESHELF

Anticipatestockshortages
Standardisedreplenishmentcycles
Replenishmentshouldbecyclicalandplanned
accordingtotheinflowandconsumption
patternsofeachshop,ratherthaninreactionto
detectedout.or.stocksituations

Takingintoaccountconsumptionthroughoutthe
dayandtheshelfsize,differentshopsections
mayhaveditterentrestockingfrequencies

Thedesignofthereplenishmentrouteshould
includethestoppingpoints,thetoolsselection
forcollectingneeds,thedimensioningofthe
necessaryhandlingmeansandemployee
training.

Inadditiontothereduction
ofout-of-stockontheshelf
andtheincreasein
productivityof
replenishment,qualityalso
benefitsasthere'sa
reductioninthenumberof
damagedgoodscausedby
handling.

Facilitateproductsaccess
Warehouseorganisation
Thereorganisationoftheshop'sbackroomand
theimprovementofproductreceptionprocesses
canhaveasignificantimpactonreplenishment
flow
s

•Theitems'locationinthebackroomwarehouse
mustbebasedontheproductfamily,theirrelative
positionintheplanogramandthereplenishment
frequencyandvolume.
Productpackagingshouldminimisethehandling
fromreceptiontotheshelf.Insomecases,itmaybe
necessarytouseasortingcelltoseparatethe
receivedpallets

Visualmanagementandinformationflowsplayacrucialroleinincreasingthe
productivityoflogisticaltasksinthewarehouse,whichinturnwillinfluence
productavailabilityontheshelf.

Whatabout
Real
whenthis
happens?
Forecast
Timé

Respondtopeakdemand
Semi-finishedproducts
•Whetherproducinabreadinasupermarket
orcustomisingagarmentinashop,sizing
stocksofsemifinishedproductscanout
anendtoout-or.stocks

•Plannedproductionguarantees
consumptionfortheexpecteddemand,
whereassemi-finishedstockcomesintoplay
ifdemandishigherthanplanned.
Thesizingofthestockmusttakeintoaccount
theshopformat,theavailableteamandthe
demandprofileofeachproduct.

Aswellashelpingtoreduceout-of-stockanddamagedgoodsorover-stock,the
useofsemi-finishedproductssimplifiesteammanagementasitallows
replenishmentthroughoutthedaywithminimumeffort.Forfoodproducts,it
guaranteesfreshnessandquality.

WHATIFTHEREAREFREQUENT
OUT-OF-STOCKSINTHESHOP
WAREHOUSE?
Sizestocksandreplenishment
basedonrealdemand
Pullplanning
Fastandtrequentorderinganddeliveryprocessesallow
shooteamstoworkonastockreplenishmentmodel
basedonactualarticleconsumptionandnotsolelv
hasedonforecaste

•Theinformationandknowledgeoflocalteamscanbe
usedtoimproveforecastsashomologousperiodsarenot
sufficienttopredictdemandinsuchavolatileecosystem
Theapproachtostockmanagementcanandshouldbe
distinctforhigh,mediumandlowturnoverproducts.

Usually,high-turnoveritemscanbeplannedcentrally
andlow-turnoveritemslocalv

Createanagileresponseteam
Employeetrainingandversatility
Thefirststepistostudythedemandprofilesofeachshop
andadjusttheworkforceaccordingly
/ONE
Oncetheteamshavebeendefinedtheheginningof
eachdayshouldincludetheassignmentofpriorities,
DOING thoallocationoftasks,thecommunicationof

objectivesandthesharingofrelevantinformation.
•Withstandardisedoperationsanddifferentteam
Do memberstrained,therewillbegreateragilityinadjusting
theworkingdavincaseofdemandvariabilitv

ATKAIZENINSTITUTE,WEWORKHAND-IN-HANDWITHRETAIL
LEADERSTOBUILDPROFITABLEOPERATIONSTHATDELIVER
EXCEPTIONALCUSTOMEREXPERIENCES

TREA ConTInEnTE Chocolat Cocado fnac

Consumers demand immediacy, and to satisfy this, retailers seek to ensure

product availability at all times. To do this, they need to transform their in-
store logistics processes, ensuring that the information and products they
need are moved on time, with minimum interference with the customer’s
purchasing experience.

It is necessary to work on stock dimensioning, anticipation of stockouts,

preparation for demand peaks, accessibility of products in the warehouse and
the team’s agility. The end of in-store stockouts depends on the retailer’s
ability to build and sustain robust stock replenishment and management
processes.

#retail #operations

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