CASE STUDY

Supply Chain: Protecting Against Out-of-Stocks

Aug 21, 2024

Snapshot

MARKET RESEARCH SERVICES

On Shelf Availability
Liquid Data Collaborate

DATA TYPES

Inventory

INDUSTRIES

CPG

COMPLETION

Pre-2020

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.

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.

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.