On-shelf availability and logistics rationalization. A participative methodology for supply chain improvement

Abstract

Ensuring “On-shelf Availability” (OSA) or avoiding “Out of stock” events (OOS) in a store is a key factor for customer satisfaction. Likewise, logistics rationalization throughout the supply chain is a key factor for business profitability.The main aim of this paper is twofold: First, to design a participative methodology that systematically seeks to reduce OOS events, maintain a store's image and rationalize logistics processes by adopting the Action Research approach; Second, to illustrate the usefulness of this methodology, by implementing it in one of the largest retailers in Spain.The proposal selects and applies a set of specific key performance indicators (KPIs) related to shelf use by redesigning store and logistics processes in a structured, participative way.