Easy Steps to Ideal OSA

If your organization uses modern demand planning or supply chain tools, there are simple steps to eliminate unknown stock-outs. First, let’s define unknown stock-out. Ideally, everything delivered to a store sells and the retailer successfully uses perpetual inventory methodology. Unfortunately, in reality, mistakes occur in the distribution chain from center to store, including miss-scanned items, breakage, misplaced items, and theft. Stock-outs are often resolved by overstocking specific items to prevent immediate revenue impact.

What can a retailer do to address this issue more effectively?

The first step is to understand the magnitude of the issue. According to studies, stock-outs account for 4-8% of revenue as lost opportunity. To quantify the opportunity, we welcome you to use Kloud9 Stockout Sentinel assessment.

How does the assessment work?

Stockout Sentinel uses key datasets from store inventory, sales, returns, store transfers, fulfillment, and product catalog in a specific format for effective processing to produce features for AI models. If your organization uses Relex Solutions, this process is simple because Kloud9 Data Hub for Relex will automatically map and configure required files. Once the data files are processed and Stockout Sentinel runs its predictive models, it produces a report showing potential revenue if inventory levels were corrected and additional items were delivered to the correct stores.

What happens next?

The assessment can be completed in weeks, even if your organization didn’t use Relex as we can leverage our Data Hub product for data acquisition, cleansing and preparation. Once done, implementing SaaS-based Kloud9 Stockout Sentinel is a breeze, especially after seeing the value of eliminating unknown stock-outs. If tweaks are needed in the predictive models, our professional services can ensure an optimal balance between safety stock and inventory availability. The final step is to integrate the prediction outputs to your operational systems and start capturing higher revenue!

‍