A new approach to availability that has helped Tesco and Gillette to slash out of stocks is to be offered to other suppliers.
By linking EPoS data to Tesco’s Clubcard data, Gillette has dramatically reduced out of stocks of Oral-B replacement head twin packs across stores.
The company used a new tool from Dunnhumby that identifies consecutive hours of non-sales of a product. By combining this data with that of Clubcard, suppliers can discover whether a shopper who usually buys their product chose a different one or left empty-handed.
In the year to January 2005, Gillette discovered that 51% of 540 Tesco stores suffered intermittent out of stocks,where a sku is off sale for a few hours or a day, and 10% had prolonged out of stocks, where it is off sale for three weeks or more.
“Across the board we had 14.4% out of stocks, equating to nearly E600,000 in lost sales. This is on one SKU, in one category, in one retailer in one country,” said Gillette global customer director Carl Davis.
“We can now call on stores where out of stocks are most prevalent and aid the store team with replenishment,” he added.