SUMATUS On-Shelf Availability solution

Using our AI software to track sales and inventory balances, brick-and-mortar retailers can identify and fix operational in-store execution issues, improve On-Shelf Availability and Visibility, and restore sales up to 2%.

Problem

  • The average worldwide Out of Stock (OOS) rate in retail is about 8.3% and it is reason for the loss of around 4% of sales.

  • About 25% OOS events are caused by shelf OOS, when the product was actually in the store, 47% events are caused by not accurate demand forecasting and ordering, 28% events are caused by other factors - mainly suppliers.

  • The level of coincidence of actual and accounting stock balances is 35–45% of cases. Presence of "phantom inventory" is the major contributor to 47% store ordering root cause.

  • Shoppers encounter stock outages, empty shelves, price confusion, and other similar obstacles to purchase in as many as one in three shopping trips.

Root causes of shelf OOS

  • Incorrect stock balances due to which understated orders are formed:

    • The accounting records include items that in fact are not in the store. It is timely not written off missing or accumulated due to re-sorting products.

    • The accounting records include items that are physically in the store but they are not suitable for sale. It is timely not written off damaged and expired products.

  • Products are present in the store, but not on the shelf. It is items still in the store backroom after receipt or late replenishement of shelves during the day.

  • Products are present on the shelves, but shoppers cannot see and find them:

    • Items which are hidden by other products. 

    • Items which are in small quantities hidden deep in the back of the shelves.

  • ​Products with incorrect or missing price tag.

  • Late promo start - missing promo product or promo price tag. 

How it works?

  • The machine learning algorithm every day analyses sales and stock balances of each item in each store and identifies operational in-store execution issues. 

  • Each store personnel receive prioritized alerts to act on specific list of problematic items daily.

Why chooses our solution?

  • The solution helps timely indetify in-store execution issues, fix them, increase On-Shelf Availability, and restore sales up to 2%.

  • The solution helps increase cutomer loyalty. It "attacks"  about half of the shelf OOS rout causes. 

  • The solution saves store employee time to track problematic - low or not selling products.

  • The solution helps improve demand forecasting and ordering accuracy. It is a perfect add-on application to retailer’s existing ordering tools.

  • Integration with retailer’s systems is quick and easy; it takes about 1 week. Solution's payback observe immediately.

  • Price starts from 10 Euro/month per store.