Many retailers are developing their strategies looking at EPOS Visibility indicators for more assertive decision-making to enhance their performance and profitability.
Below, is a list of how proper management of EPOS Visibility KPI’s can leverage the competitiveness of your company:
1. Inventory Turnover: This indicator helps monitor the flow of products’ input and output, so the required amount is always available to the end consumer. Satiko Sipranao, EPOS Visibility expert at NeoGrid, explains “a higher turnover indicates that the product was in the right place at the right time, and therefore, was available to the consumer.”
2. Stock Coverage: This KPI enables the company to understand how long their inventories can cover the consumers’ demands. This ensures greater operational efficiency and assertiveness for item planning, thus enhancing sales. “If you keep inventory turnover and coverage at the right levels, you will always ensure product availability is in the store, and thus, a satisfied customer”, Sipranao adds.
3. Out-of-stock (OOS): By constantly monitoring the OOS indicator, companies can make the right decisions immediately to prevent shortages on a store’s shelves. According to data from NeoGrid, in July 2015, the OOS level for the Brazilian retail market was at 12.59 percent, resulting in a financial loss of approximately 3 percent of sales for stores and manufacturers.
4. OSA (On-shelf Availability): The OSA KPI identifies the root causes of having the product in store, but not available on shelves at the time of a consumer’s purchase. This works through a system gathering the history of sales, which then calculates the demand of a particular item for each store. For sales that have not reached the forecasted volume, the system collects and links different pieces of information until identifying why there was no on-shelf availability.
With proper, collaborative supply chain management, including EPOS Visibility that considers KPI’s going beyond the obvious, such as OSA, companies can gain a competitive advantage to enhance retail sales.