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ECR Iniciative Presidium Nielsen On Shelf Availability Solution (OSA). Prague October 1 2 th , 2012. Agenda. What data is required to manage OSA?. Nielsen OSA methodology There are a 4 main steps in understanding availability using daily data.
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ECR Iniciative Presidium Nielsen On Shelf Availability Solution (OSA) Prague October 12th, 2012
Nielsen OSA methodologyThere 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.
OSA Rate % 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.
Root causes identification Order not placed Order not delivered Partial OOS False Stock Stock not available on Shelf Negative Stock Unidentified Stock in Transit DC Orders Store Stock Unit Sales DC Receipts Store Orders Value Sales DC Stock Store Receipts DC Store Orders ROOT CAUSE IDENTIFICATION
Solution Related Process & Services
SQL Web Server How does the process work? • Through alerts, each player internal and potentiallyexternal is aware of dedicated corrective actions that have to be implemented in order to smooth current difficulties and anticipate the coming days and weeks STORES RETAILER Suppliers Reports/Charts Buyers /Cat Man Reports/Charts Sales /Cat Man Reports Supply Chain Reports Supply Chain OOS Alerts Stores OOS Alerts Field Rep Top / Bottom Top Management Top / Bottom Top Management Projet OSA Daily Data Delivery 1:30 PM 7:30 AM
Sample output by function Supply Chain m OSA Root Causes
Petr Kriklan Retailer Services Director Email: petr.kriklan@nielsen.com Mobile: +420 773 781 593 Jaroslaw Bogusz Global Account Manager Email: jaroslaw.bogusz@nielsen.com Tel: +39 342 713 6966