Out of stocks; every shopper has encountered them. They're frustrating. And a problem of epic proportions. How big? Let's look at some data.
Last year, IBM surveyed 1,500 UK consumers on their retail expectations and their opinions on out of stocks. It wasn't pretty. In fact, 74% of consumers said they'd shop at a competitor if you're out of stock. Worse still, it's not just the immediate lost sale. The study revealed that consumers would also forfeit future shopping trips at a retailer if they encountered an out of stock.
How many? 21.5% said they'd forfeit one trip, 34.5% said they'd forfeit two, and 10.8% said they'd avoid shopping at the retailer three or more times. Ouch!
But there is a silver lining. If you can recover from an out of stock, the upside can be bigger than you might expect.
This brochure investigates the upturn for retailers in addressing the hidden cost of out of stocks, and the important role that an Order Management System can play in maximising the gains.
Much of our thinking focuses on the nascent and fast-advancing technologies that are set to transform and protect the fortunes of retailers in the coming years. Yet, whilst AI, IOT, VR and AR are stealing the headlines, it's worth businesses being alert to the tech solutions making a difference for brands today. One particular example that's solving the challenge of inventory visibility in retail: Out of stock items!
Retailers are responding to consumer needs by offering greater choice of delivery options. Whilst that's encouraging, are they equipped to deliver a consistent, profitable customer experience? To enable these new capabilities, retailers must tune or re-architect their supply chain and order fulfillment business processes and systems.