"Out-of-Stock" Management: An Outcome-Based Approach

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While merchandizing and supply chain managers are constantly working on lowering Out-of-Stock (OOS) levels and controlling inventory investments, most retailers fall short of sales forecast for fast moving items; at the same time, inventory accumulates in other categories. An Aberdeen research report recently indicated that 70% of surveyed 120 retailers rated the performance of their inventory management function as average or below average.

This paper highlights ‘merchandize management challenges, especially those related to OOS, and explains how businesses can develop a Key Performance Indicator-driven process framework that aligns stock performance with corporate objectives. Meaning: Your customers get what they want, when they want and wherever they want

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