Unified Data Platform & Amazon personalize30 November 2019
Retail Stock Management Techniques For New-Age Retailers22 January 2020
StockOuts and Why It Happens
According to wiki, A stockout, or out-of-stock (OOS) event is an event that causes inventory to be exhausted. In layman terms, it means unavailability of the product when customer want to purchase it. Stockout is an opposite of overstock which means, surplus of inventory than required.
Before we go through what causes stockouts, lets see how stockout adversely impacts the business.
Negative Effects of Stockouts
All or some of the above effects can be reduced if we understand what causes stockouts.
Causes of Stockouts
Its not practically possible to reduce stockouts to zero, as that means infinite inventory and storage in stores, which is not possible. But there are ways using which stockouts can be minimized.
Though it is difficult to get every part of the supply chain work efficiently and in tandem but suppliers need to work with manufacturers, distributors and retailers to ensure that product is available when customer need it.
Stockouts not only lead to loss of potential sales, it affects customer loyalty, brand recall, investors confidence etc.
While it is not possible to zero out the stockouts but data can help in lowering the barrier and AI in Supply Chain can help in automatation and optimization end-to-end.