Case Study: Replenishment Redesign Reduces Out-of-Stocks

Client Description

European CPG retailer

Background

Improve In Store ordering, shelving, replenishment, and information delivery processes

Objective

Reduce out of stocks by 50% within a 6 month period.

TPG Approach

  • Loss Analysis on 12 distinct and representative products backwards from the shelf through planning
  • Work process analysis and in-store interviewing of all critical store functions
  • Best practice assessment of Computer Assisted Ordering and shelf management
  • Redesigned Shelf Tagging process
  • Redesigned corporate strategy and direction for out of stock improvement
  • Improved backroom work processes and information management
  • Developed proper Computer Assisted Ordering reports
  • Redesigned store ordering and replenishment processes

Impact/Results

Out of stocks improved by 50% (8% to 4%) over 6 months

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