Online Grocery: Out of Stock Prevention Vs Mitigation?
Date and Time:
November 10th - 2pm UK time
Location:
Virtual
10 Nov 3:00 PM
Organisers:
Professor Pedro Amorim, INESC TEC, Faculty of Engineering, Porto, Portugal
Description

According to new research from academia, for the retailer they studied for over a year, some 79% of all online grocery orders had at least one fulfilment failure, with an average of 3.15 failed items per failed order.
And they found that while intended as a fix, substitutions can actually worsen future customer behaviour. Compounded when customers receive and are charged for unwanted items—a “double disappointment"
The research, which was based on 12 months of data from a leading European omnichannel grocery retailer with 700 stores, 50, 000 SKUS with a 70% of the online grocery market, revealed that just one fulfilment failure can reduces spending on the next order by € 1.14 or 0.84%, on average—even more if the failed item was on promotion.
The implication here would be that *stockout prevention (better inventory and forecasting) is economically superior to mitigation (such as substitutions or partial fulfilments) making the case that retailers look to prioritise preventing the failure from occurring at all, rather than trying to manage its aftermath.
In this meeting, we will first hear a presentation of the research, and then what will follow will be a discussion of the conclusions and the retailers thoughts on whether they are seeing the same insights from their data and then retailers thoughts on how they could act on the findings in their business.
This meeting is for retailers, CPGs and academics only.
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