{"id":15000,"date":"2025-02-24T14:31:27","date_gmt":"2025-02-24T19:31:27","guid":{"rendered":"https:\/\/jrtechsolutions.ca\/?p=15000"},"modified":"2025-05-13T16:00:36","modified_gmt":"2025-05-13T20:00:36","slug":"on-shelf-availability-osa","status":"publish","type":"post","link":"https:\/\/jrtechsolutions.ca\/en\/on-shelf-availability-osa\/","title":{"rendered":"What Is On-Shelf Availability (OSA) and How Can You Improve It"},"content":{"rendered":"\t\t
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On-shelf availability (OSA) is a critical metric in retail management that measures whether items are available for sale where and when customers expect to find them. By focusing on OSA, retailers can improve the in-store experience, minimize waste, and boost their bottom line. On-shelf availability is vital to succeeding in today’s competitive retail landscape.<\/span><\/p>

How is on-shelf availability calculated?<\/b><\/h2>

OSA is calculated as the percentage of products readily available for customers to purchase in a store. For example, if a brand wants ten of its best-selling Stock Keeping Units (SKUs) to be present in a store, but only five are available on the shelf, the OSA for that particular product assortment would be 50%.<\/span><\/p>

How OSA impacts retail success<\/b><\/h2>

Retailers can drive sales, improve customer satisfaction levels, optimize inventory management, and maintain a strong competitive position in the market, all by improving on-shelf availability. Here are several ways in which OSA significantly impacts retail success:<\/span><\/p>

Sales and revenue<\/b><\/h3>

High OSA directly increases sales and revenue. According to <\/span>research by McKinsey & Company<\/span><\/a>, improving OSA by just 1% can boost sales by 20 to 35 basis points. Additionally, an IHL study estimates that retailers globally <\/span>lose $1.77 trillion annually<\/span><\/a> due to inventory distortion.<\/span><\/p>

Customer satisfaction and loyalty<\/b><\/h3>

Consistent product availability improves customer satisfaction and encourages repeat business.\u00a0When products are unavailable, customers may turn to competitors, potentially damaging customer trust and loyalty.<\/span><\/p>

Inventory management<\/b><\/h3>

According to a <\/span>global study on out-of-stocks by Corsten and Gruen<\/span><\/a>, when shoppers encounter out-of-stock items, 36% either buy the item at another store (27%) or do not make a purchase at all (9%). Improved inventory accuracy means lower risk of understocking or overstocking, which reduces additional costs and lost sales opportunities.<\/span><\/p>

Employee productivity<\/b><\/h3>

Poor OSA negatively impacts employee productivity. Employees spend an average of 12.5 hours per week on restocking activities, diverting them from other tasks and increasing labor costs. Improved OSA can make this task more efficient and cost-effective.<\/span><\/p>

Demand forecasting<\/b><\/h3>

Focusing on on-shelf availability also supports accurate demand forecasting. By examining sales data and inventory levels, brands can more effectively anticipate future demand for their products, and adapt production and supply chain processes.<\/span><\/p>

Competitive advantage<\/b><\/h3>

Retailers maintaining high OSA gain a competitive edge in the market by providing a reliable shopping experience and meeting customer demand. It can also improve brand image, as brands that consistently ensure product availability are perceived as reliable and trustworthy by consumers.<\/span><\/p>

Inventory turnover<\/b><\/h3>

Improved OSA leads to better inventory turnover, reducing the risk of overstocking and minimizing holding costs.\u00a0<\/span><\/p>

On-shelf availability and inventory management<\/b><\/h2>

Inventory management and on-shelf availability are inextricably linked. Stockouts and excess inventory can lead to lost sales revenue and increased storage costs. By optimizing their inventory management practices, retailers can reap the rewards and benefit from improved on-shelf availability as well.<\/span><\/p>

Let\u2019s take a look at approaches that can benefit both on-shelf availability (OSA) management and overall inventory management:<\/span><\/p>

  1. Real-time inventory tracking<\/b>: Implement systems that provide accurate, up-to-date information on stock levels both on shelves and in backrooms. JRTech plays a role in bringing <\/span>intelligent and interconnected inventory management solutions<\/span><\/a> to retailers by integrating <\/span>inventory scanning robots<\/span><\/a> developed by our recent acquisition BrainCorp, ESL technology, and AI. These technologies make it possible for retailers to rely on a seamless solution that elevates inventory tracking, analysis, and management. Groundbreaking solutions like ours allow retailers to achieve higher levels of speed and accuracy in ensuring shelves are always stocked and products are correctly priced.<\/span><\/li>
  2. Demand forecasting<\/b>: Use historical sales data, market trends, and predictive analytics to anticipate customer demand and optimize stock levels.<\/span><\/li>
  3. Automated ordering systems<\/b>: Employ technology to trigger reorders when inventory reaches predetermined thresholds, so it can be replenished in time.<\/span><\/li>
  4. Regular cycle counting<\/b>: Conduct frequent inventory checks to maintain accuracy and identify discrepancies between system data and actual stock.<\/span><\/li>
  5. Planogram compliance<\/b>: Verify that products are placed correctly on shelves according to store layout guidelines, which improves visibility and accessibility.<\/span><\/li>
  6. Supply chain coordination<\/b>: Collaborate closely with suppliers to minimize lead times and maintain consistent product flow.<\/span><\/li>
  7. Store-level forecasting<\/b>: Monitor and adjust inventory levels based on individual store performance and local demand patterns.<\/span><\/li>
  8. Integrated retail management systems<\/b>: Use platforms that combine inventory management, sales tracking, and customer relationship management for a holistic view of operations.<\/span><\/li>
  9. Task management for frontline employees<\/b>: Assign and track restocking and inventory check tasks to confirm that tasks are completed on time, to prevent stockouts.<\/span><\/li>
  10. Alert systems for low stock<\/b>: Implement automated notifications to prompt quick action when products are running low.<\/span><\/li><\/ol>

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    Practical strategies to reduce stockouts: technology is key<\/b><\/h2>

    Today\u2019s retailers know that technology plays an important role in managing inventory and <\/span>preventing stockouts<\/span><\/a> for better OSA. With the right digital infrastructure, your store can benefit from a significant increase in efficiency and therefore profit. By strategically combining advanced technologies with well-planned initiatives, retailers can significantly improve on-shelf availability.<\/span><\/p>

    In-store OSA strategies<\/b><\/h3>