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On Shelf Availability

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On Shelf Availability

For the first time, the UK grocery industry now looks set to really tackle on-shelf availability issues. This report outlines the wide variety of initiatives which are now being put in place to tackle this perennial problem.

Product availability on shelf has always been a major issue for suppliers. However, without real retailer pressure and focus there have been many false dawns. For the first time, the UK grocery industry now looks set to really tackle on-shelf availability issues. Through the auspices of ECR UK's Availability Workgroup and major independent initiatives on the part of the Big Four multiples, especially Tesco, the industry looks like being on the verge of real progress. How is this being achieved?

Our research looks at current industry thinking on some of the root causes behind poor on-shelf availability. ECR's root causes can be grouped into 3 main areas: inventory and stock errors, forecasting and other primary supply chain difficulties; and execution issues in store, in the last 50 yards. This is still the main reason for out-of-stocks, as much as 60%.

But a whole plethora of initiatives are now being put in place to tackle shelf-replenishment. Stores and stock rooms are now better organised, shelf-ready packaging is now an industry priority and flexible merchandising units are now more widely used. Tesco has introduced colour coding on outers and Asda's Retail Link means that suppliers can identify problem stores. And RFID roll-out to pallets and cases, and eventually through to individual items will eventually have an impact.

There is also evidence to suggest that retailers and suppliers are now working better together to improve on-shelf availability. This has not always been the case in the past. Our research highlights a growing number of suppliers who are actively engaged in packaging development and in in-store projects helping to motivate and train shelf replenishers. The previous retailer and supplier culture of "this is not my problem" is diminishing. Manufacturers are coming to realize that if they want to ensure that their own products are on-shelf, they need to take the initiative.

This is the 5th Insight study on On-Shelf Availability. It is based on interviews at senior level with retailers, manufacturers and logistics serviceproviders. It suggests that at long last, there is now the necessary collective will to impact on the perennial issue of poor on-shelf availability in theUK grocery market.

Published: October 2004

Price: £ 495, US$ 795, € 695

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