Pensa

Reducing convenience retailer out-of-stocks through improved operational visibility to actual shelf inventory conditions

SITUATION

Supply chain disruptions, omnichannel growth and labor shortages have exacerbated an already precarious situation for retailers, keeping their shelves stocked with the right products at the right time to optimally meet shopper demand. Nowhere are the demands of managing this critical profitability driver more apparent than in the convenience channel where smaller store footprints fraught with condensed merchandising, creative inventory storage and limited staff create a challenging environment for inventory visibility. Pensa partnered with a leading national convenience retailer to prove out that continuous visibility to actual shelf inventory conditions is practical in even the most challenging store environments and can have an immediate and significant impact on reducing out-of-stocks.

OSA% BY CATEGORY

VISIBILITY SHARED

KEY INSIGHTS

On Shelf Availability (OSA) levels varied wildly between categories and were on average lower than expected.

Direct Store Delivery categories like Soft Drinks and Other Beverages had much lower OSA than the other categories.

KEY ACTION

Pensa’s interactive OSA dashboard provided the retailer shelf data benchmarking and shelf condition visibility that led to an immediate 43% reduction in out-of-stocks with further upside anticipated from ongoing operational improvements.