Annual Report 2009-2010 - GS1

GS1 Argentina
Annual study shows primary causes of empty shelves
Out-of-stocks continue to be an issue
Every year, GS1 Argentina carries out a study to measure
the average percentage and the causes of out-of-stock
situations in supermarkets around the country. In 2009,
the eighth annual edition of this Out-of-Stock Study
surveyed 462,152 food, beverage, personal care and
household care items identified by their GS1 GTIN (Global
Trade Item Number). The survey registered an overall
out-of-stock level of 14.6%, compared to 13.8% the year
before, a year-on-year increase of around 8%.
The study gathered data from 12 supermarket chains with
198 stores in the federal capital area and the provinces of
Buenos Aires, Neuquén, Córdoba, General Roca, Mendoza,
Rosario, Bahía Blanca and Tucumán. Out-of-stock results
ranged from a high of 17.1% in Córdoba Province to a low
of 12.8% in Tucumán Province.
The study also included data provided by 14
manufacturers who were asked to confirm the data or to
explain the circumstances that caused the out-of-stock
situations. The survey found that out-of-stock levels by
product category ranged from 14.9% for food, 13.1%
for beverages, 17% for household items, and 14.4% for
personal care products.
Causes clearly identified
The eight consecutive annual studies consistently show
that three-quarters of all out-of-stock situations are
caused by lack of replenishment by the merchandiser,
despite the product being in stock at the back of the
store; differences between the stock information in the
logistics system and the actual stock in the store; and
supplier delivery delays.
This latest survey indicated that the responsibility for
the out-of-stock situation rests with the retailer in 72.3%
percent of cases; with suppliers in 16.7% of cases, with the
distribution and replenishment centre in 10.7% of cases,
and with the purchasing office in 0.3% of cases.
The results clearly show that out-of-stock products at the
shelf level affect everyone involved in the supply chain
– suppliers, manufacturers, transporters, wholesalers and
retailers. The study shows conclusively that the reduction
“The study shows conclusively
that the reduction of
out-of-stock situations is the
shared responsibility of the
entire supply chain.”
of out-of-stock situations is the shared responsibility of
the entire supply chain. All the players along the supply
chain must cooperate to reduce out-of-stocks, not only in
order to optimise financial results, but most importantly,
to improve customer satisfaction.
Collaborative efforts help
To help its member companies reduce out-of-stocks,
GS1 Argentina has coordinated a number of collaborative
efforts between retailers and suppliers. In 2010, Disco
Supermarkets and a group of 10 suppliers that include
Nestlé, Unilever, Kraft, P&G, Danone and other key local
players are working with GS1 Argentina on a process
revision designed to improve the on-shelf availability of
their largest selling SKUs.
For more information about GS1 Argentina, visit
www.gs1.org.ar
GS1 MOs in Action
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