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CASE STUDY
Supply chain: Protecting against out-of-stocks
Snapshot
SOLUTION AREA
Supply Chain
SOLUTION
Supply Chain
INDUSTRIES
CPG
CLIENT
Manufacturer
The Challenge
Manufacturer decided to proactively delist a SKU within the coffee category at Retailer and was concerned about the impact this decision may have on brand sales. The delisted item was a medium sized single-serve coffee item; smaller and larger count options would remain.
Insight
Assortment analysis revealed that 75% of volume would flow back to the smaller count size and that the category would remain flat. Retailer supply chain data revealed that the smaller count SKU had two facings but was selling through its maximum shelf capacity each week. The projected velocity increase would likely cause stockouts.
The Results
Circana recommended that the smaller count SKU receive the incremental shelf facing vacated by the delisted item to ensure high in-stock rates and to keep sales within the brand.
500K
DELISTMENT MITIGATION
ADDITION OF RECOMMENDED FACINGS PROTECTED AGAINST OOS
