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Efficient Consumer Response AustralasiaECRANewLogo

OSA Industry Pulse

 

February 2012 

OBSL

 

Each quarterly edition of the OSA Pulse will track performance against one of the key indicators to likely OSA levels, Outbound Service Level (OBSL). OBSL is the rate at which retailers are able to supply stores against the volumes of cartons of product the stores have requested for delivery.

  • Weekly OBSL data is submitted by Metcash, Woolworths and Coles and consolidated to provide a non-confidential industry summary.
  • This summary is presented for: ambient grocery; perishable products; and, total business (a sum of ambient and perishable volumes ordered and delivered).

The following three charts shown below clearly demonstrate the opportunity facing both suppliers and retailers to increase sales throughout Christmas, New Year and January.  If service levels to stores (and ultimately to shoppers) can be elevated to the same levels as seen in the balance of the year, there is a real benefit for all along the supply chain.

 

The figures for the period May 2011 - January 2012

 

CombinedGraphV3

 AmbientGraphV3 

 PGV3

CALL TO ACTION

  • Engage in discussion with your trading partners and discuss how your company's performance compares with your competitors in your categories.  Take the opportunity to undertake your own Winning in January review.
  • Identify actions by both trading partners which can help ensure OBSL rates are optimal.

 

 

Winning in January

WIJGraph

Since early in 2009 suppliers and retailers have come together under ECRA to understand specific pressure points particular to achieving high levels of on shelf availability in the month of January, considered root causes, established joint improvement opportunities and collectively worked towards improving service levels

 

Click here to download the 2012 Winning in January Report.

 

Winning at the Shelf

Earlier in 2011 the ECRA Board determined that the next stream in the ECRA On-Shelf Availability program would be Winning at the Shelf, focusing on improving the execution of fixture (shelf/display) replenishment when stock is available in the store building but not on show to the shopper - ie. improving execution of replenishment from storeroom to fixture.

 

Progress to date:

 

An extensive survey of Store Managers and Supplier Merchandisers identified key product categories and classifications as well as key in store replenishment and stock management processes to be investigated further as priorities. 
 

  • A research agency is being engaged to undertake a detailed in store study across retailers, focussed on understanding the root causes of the key issues, understanding good versus poor practice from product and process standpoint.  Retailer key stakeholders as well as Supplier Merchandisers will be interviewed as part of this process.
     
  • A working group has been formed including retailers and suppliers.  The group is holding its first workshop in February to identify the appropriate hypotheses to test in-store through observation and interviews.  The intent is to undertake the in-store research during late February and early March.

 

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From ECR UK                                                        

 

 

  

Improving on-shelf availability remains a key goal for retailers and manufacturers as research has continually shown that shopper loyalty to stores and brands is eroded over time when continually faced with out-of-stocks.

 

At the centre of ECR UK's focus on availability is a unique on-shelf availability survey tracking industry performance  across 200 products and 160 stores.  The survey is carried out six times a year across five retailers - Sainsbury's, Waitrose, Tesco, Morrisons and Asda - and eight different categories.

 

The results from this survey inspire best practice and lead to the development of initiatives that will deliver benefits for consumers.  The ECR Availability Survey is fast becoming the most definitive industry availability measure in the UK.

 

The following chart shows the OSA results from the survey from 2007 until now.

 

ECR UK is managed by IGD, and a wealth of information about On-Shelf Availability (including the survey) can be accessed by visiting IGD's website by clicking here.

 

 

ECRUKGraph

 

ECRA Annual Supplier and Retailer Convention

ECRAConvBanner2012

18-19 October 2012
Grand Hyatt Melbourne, 123 Collins Street, Melbourne

Fit for the future!

We all know that the pace of change within our industry and society is speeding up, driven by rapid advances in communications, technology and an increasingly volatile trading environment.  Increased agility and flexibility have bcome must-have factors in 2012, while efficiency, responsiveness and collaboration are also seen as critical.

This year the ECRA Annual Suppler and Retailer Convention examines the explosion of technological innovation.  Exploring how new challenges impact, how stores operate and how shoppers interact with 'multi channel'.  Technologies won't just relate to digital advances; progress in back-office systems, equipment and processes are all impacted.  The supply chain is set to change!

For further details visit the ECRA website at www.ecraustralasia.org.au

 

Quick Links

-  ECRA Homepage

-  AFGC Homepage

ECR Europe 

ECRA

Level 2,  2 - 4 Brisbane Avenue,  Barton  ACT 2600

Tel:  02 6273 1466  - www.ecraustralasia.org.au 

 

ECRA - "The meeting place for Australian and New Zealand retailers and suppliers focusing on value chain efficiency."

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Australian Food and Grocery Council | Level 2 | 2 - 4 Brisbane Avenue | Barton | ACT | 2600 | Australia