How ICA and Coca-Cola reduced out-of-stocks (OOS) by up to 65%
On-shelf availability (OSA) was a problem for leading retailers and suppliers in Sweden. Poor replenishment discipline, errors in order placement and delisting by store staff were the major causes.
Retailers and suppliers realised that they had to make and sustain major changes to improve OSA. This needed collaboration from cross-functional trading partner teams. It was vital for the teams to build their understanding of OSA and challenge the status quo.
ICA and Coca-Cola focused on improving the availability of soft drinks in ICA’s supermarket format at weekends.
IGD brought ICA and Coca-Cola together as part of a collaborative performance improvement programme. This comprehensive solution had three key phases:
- Measure and understand – participants measured OOS in 10 stores, visiting the stores and identifying the root causes of OOS by interviewing department managers.
- Redesign and pilot – using analysis of the root causes, the group tested various measures to improve OSA. These comprised a new scorecard for store managers, a new checklist for delisting, and updated ordering and replenishment initiatives.
- Roll out and sustain – armed with the results and experiences from the tests, the group developed a comprehensive plan. This included a business case, schedule, scorecard and checklist, plus online training and clear rules on monitoring OOS.
The management teams agreed the plan and it has been rolled out to all 444 ICA supermarkets.
- A well-informed group, able to create a strategic business plan to drive growth over 2020 - 2022
- A clear vision of the key trends and priority areas
- Strong understanding of current and future UK shoppers and the implications of their behaviour