Global out-of-stock problems originate and must be corrected at retail level.(GMA, Food Marketing Institute, CIES study)(Brief Article)

Food Institute Report, The, October, 2002

About 47% of "out-of-stocks" are caused by inadequate store ordering and forecasting, and 25% are caused by poor shelf management, according to a new study by GMA, Food Marketing Institute and CIES, the Food Business Forum, that examines the issue on a global scale. This means that 70%-75% of worldwide out-of-stock products occur at the retail level and must be fixed where they originate.

The study gathered data from 52 previously published reports to develop an overall picture of the "out-of-stock" situation from a global standpoint. The rate has not declined from earlier reports, although there have been technological advances in supply chain management, category management and inventory-tracking.

When faced with an out-of-stock situation, an average...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.