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CPG Demand Signals Report

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Cold weather = cozy habits unlocked. ❄️

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☕Americans drink 40% more hot chocolate during the winter months (December–February) than any other time of year. What’s your go-to cozy beverage?

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CASE STUDY

A leading CPG company successfully mitigates out-of-stocks, saving millions in annualized lost sales

A leading CPG company successfully mitigates out-of-stocks, saving millions in annualized lost sales

Snapshot

SOLUTION AREA

Supply Chain

SOLUTION

On-shelf Availability

INDUSTRIES

CPG

CLIENT

Manufacturer

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The Objective

A leading consumer packaged goods company suffered frequent out-of-stocks across its diaper portfolio, leading to on-shelf availability challenges. After investigating, the manufacturer uncovered a discrepancy in its diaper sales forecasts with a key retailer. The manufacturer sought to strengthen its partnership with the retailer by using data to demonstrate how out-of-stocks were caused by the disparity, and to show the dollar impact of lost sales resulting from the out-of-stocks.

The Solution

The Solution

Using sales and inventory data from Circana's supply chain solution, the CPG company quantified the effects of short ordering for the retailer. It also identified which stores required surge allocation to mitigate lost revenue from out-of-stocks.

The Results

Based on its findings, weekly meetings with the retailer's supply chain team were put in place, ensuring alignment with the manufacturer on order projections. After adjustments, the next quarter realized a reduction in out-of-stocks, generating a savings of over a million dollars in annualized lost sales!

The Results
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63%

Reduction in out-of-stocks

$1.6M 

Saved in annualized lost sales from out-of-stocks
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