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1 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 1 1 ECR Iniciative Presidium Nielsen On Shelf Availability Solution (OSA) Prague.

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Presentation on theme: "1 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 1 1 ECR Iniciative Presidium Nielsen On Shelf Availability Solution (OSA) Prague."— Presentation transcript:

1 1 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 1 1 ECR Iniciative Presidium Nielsen On Shelf Availability Solution (OSA) Prague October 12 th, 2012

2 2 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 2 2 Agenda #Topic 1Nielsen approach to OSA -Methodology -Solution & Process -Sample Outputs 2Possible Next Steps

3 3 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 3 3 What data is required to manage OSA? DATA needed for On Shelf Availability Granularity: Store By Store EAN level information Volume & Value Sales Stock Positions  Allow Root Cause Analysis - Store stock - Orders - Receipts Frequency: Daily Data available Daily

4 4 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Nielsen OSA methodology There are a 4 main steps in understanding availability using daily data. 1. Understand what’s Normal, or how much should I be selling based on past sales information – Base Line (Demand) for single SKU, in single store, in particular day 2. Determine Lost Sales in volume, value, as well as the availability rate (OSA Rate) 3. Detect in each store Products with Availability problem 4. Out of Stock root cause analysis 5. Alerts sent to stakeholders to take market action. Fix the issue.

5 5 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 5 5 Algorithm principles: Exclusion of items under Promotion Exclusion of Sales spikes Exclusion of Abnormally Low Sales The remaining “data points” are considered valid Understand what’s normal (,,Demand’’) Calculation of daily Demand

6 6 Copyright © 2011 The Nielsen Company. Confidential and proprietary. OSA RATE PERCENTAGE: The percentage difference between the Demand and the Lost Opportunity Units. Used as a directional consistent On Shelf Availability trend allowing to track improvement. OSA Rate %

7 7 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 7 7 Root causes identification DC Stock DC Store Orders DC Orders DC Receipts Stock in Transit Unit Sales Value Sales Store Stock Store Orders Store Receipts Stock not available on Shelf ROOT CAUSE IDENTIFICATION False Stock Partial OOS Order not placed Order not delivered Negative Stock Unidentified

8 8 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 8 8 Solution Related Process & Services

9 9 Copyright © 2011 The Nielsen Company. Confidential and proprietary. OOS Alerts  Stores Top / Bottom  Top Management Reports  Supply Chain Reports/Charts  Buyers /Cat Man SQL Web Server How does the process work? Projet OSA Daily Data Delivery Daily Data Delivery 7:30 AM 1:30 PM Through alerts, each player internal and potentially external is aware of dedicated corrective actions that have to be implemented in order to smooth current difficulties and anticipate the coming days and weeks OOS Alerts  Field Rep Top / Bottom  Top Management Reports  Supply Chain Reports/Charts  Sales /Cat Man RETAILERSuppliers STORES

10 10 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 10 Copyright © 2011 The Nielsen Company. Confidential and proprietary. 10 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Supply Chain Sample output by function m OSA Root Causes

11 11 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Petr Kriklan Retailer Services Director Mobile: Jaroslaw Bogusz Global Account Manager Tel:


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