What is stockout? Learn how to avoid it

by | 05/02/2020

3 minutes to read

Which consumer is not frustrated when he leaves the house, faces traffic, arrives at a certain supermarket, and does not find several products that he is used to buying on the spot? You should know that this business deficiency is very negative in the loyalty process and is known as stock rupture.

By being dissatisfied and knowing that he will have to spend more time to complete his purchase, the customer will certainly opt for the competition and there are great chances of him giving preference to the place that solved his desire. Would you like to learn how to avoid this disorder in your business? Then keep reading!

Learn what stock disruption is

What does the word RUPTURE mean to you? Breaking, missing, removing? This is what happens in the stock of a certain company: the absence of a product when the customer needs it.

In retail, the problem reduces sales by up to 10% and the losses go well beyond, as the loyalty process is no longer valued, giving gas to the competition.

Therefore, it is worth paying attention to some details so your business does not fall into this trap.

Find out how to fight the problem

The first tip for you not to experience stockouts is to have a good management of your company, with the help of technology through spreadsheets and software, in addition to properly trained employees.

In addition, many other actions make all the difference in the operational aspect, such as:

Compare items

Regardless of the size of your stock, you need to keep a comparison between existing items and those sold. If your business works with perishable products, the analysis must be daily.

For that, an integrated management or inventory control software helps immensely, as reports will be presented as well as warnings about replacements.

Plan your purchases

There are special dates when sales increase and others decrease. With that in mind, schedule your purchases, especially taking into account seasonality.

Monitor operations

A big sale on a given day can mean the end of a product in less than 48 hours if there is no quick replenishment. Therefore, monitoring sales and stock flow is essential to avoid disruption. So, there is nothing better than having management software.

Optimize time

Inventory control software will also help immensely in optimizing your company’s time.

By integrating several sectors in the same system, it will be possible to observe the sales flow and the need for new purchases according to the cash flow, that is, the stockout will be combated.

Thus, your business will certainly be at the forefront of the industry, avoiding sales losses. With that, customers will be more satisfied and will certainly consume with you again!

Always be attuned to what is most modern to maintain an adequate inventory management and do not give up on solutions tuned to the consumer valuation policy.

In this way, stockouts will be avoided, meeting the demands of customers who will be trusting your business!

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The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.




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