An examination of the causes for retail stockouts

Ehrenthal, Joachim C.F.; Stölzle, Wolfgang

doi:10.1108/09600031311293255

Cited by 57 publications

(57 citation statements)

References 41 publications

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“…The identified processes are independent from the store format and include activities and processes dedicated to making products available at the point of sale and giving them the best chance of being sold (see Process 2: "Instore logistics"; Kotzab and Teller, 2005;van Donselaar et al, 2006;Reiner et al, 2013). From our interviews we found that the inherent, paramount aim behind those processes is to provide sufficient onshelf availability and reduce the opportunity costs related to out-of-stock situations (Ehrenthal and Stölzle, 2013). In most cases products are sold (see Decision 3: "Product sold?")…”

Section: From Delivery To the Selling Of The Productsmentioning

confidence: 98%

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Unsaleable grocery products, their residual value and instore logistics

Holweg

Teller

Kotzab

2016

International Journal of Physical Distribution &Amp; Logistics Management

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Purpose: The aims of this paper are (1) to explore the complexities of regularly implemented as well as irregularly occurring -sometimes improvised -instore logistics processes related to products which are declared unsaleable and (2) to identify the challenges and opportunities in managing instore logistics processes related to unsaleable products in grocery stores. Methodology:We apply an embedded case study approach. Within each case, i.e. dominant store format, we investigate the instore logistics processes of 32 retail and wholesale stores and focus further on those processes related to products declared unsaleable. The case study research methodology comprises in-depth interviews with store and category managers, pointof-sale observations and secondary data research. Findings:We identified four different specific instore logistics processes depending on the residual product value of unsaleable products. The analysis of these processes suggests that establishing more efficient return, disposal, recycling and, most importantly, redistribution processes leads to various benefits such as cost savings, more effective and efficient operations, better use of resources and waste reduction, while at the same time supporting charitable institutions and people in need. Contribution:The contribution of this research is (1) to provide a better understanding of different ways of seeing and handling unsaleable products and (2) to reveal the significant importance of focusing on instore logistics beyond the point of sale with respect to the economic, ecological and social benefits to retailers, wholesalers and their stakeholder groups.

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Section: From Delivery To the Selling Of The Productsmentioning

confidence: 98%

“…Corsten and Gruen, 2003;Ehrenthal and Stölzle, 2013). Other authors focus on store replenishment and the efficiency of store operations processes (e.g.…”

Section: Literature Reviewmentioning

confidence: 99%

Unsaleable grocery products, their residual value and instore logistics

Holweg

Teller

Kotzab

2016

International Journal of Physical Distribution &Amp; Logistics Management

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“…Attention has been devoted to its measuring (Roland Berger Consultants, 2003;Gruen, Corsten, 2007), identifying (Papakiriakopoulos et al, 2009;Papakiriakopoulos, Doukidis, 2011) main root causes (Fernie, Grant, 2008;Ehrenthal, Stolzle, 2013), effects (Gruen, 2007;Musalem et al, 2010), and customer responses in out-of-stock situations (van Woensel et al, 2007;Zinn, Liu, 2008).…”

Section: Retail Product Availabilitymentioning

confidence: 99%

The Effect of Inventory Level on Product Availability and Sale

Grubor¹,

Milićević²,

Đokić³

2016

Prague Economic Papers

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By increasing inventories, retailers attempt to raise service levels, and thus increase sale. However, in addition to a positive impact on product availability and sale, higher inventory levels may cause problems in performing in-store activities. As poor backroom-to-shelf replenishment process emerges as one of the most common causes of stock-out situations, this article compares store and on-shelf FMCG product availability at SKU level in diff erent stores of a single retailer. In relation to this, besides direct, we have also investigated the indirect eff ect of inventory level on sale, by using store and shelf out-of-stocks as mediators. The results of the research showing much higher level of shelf-compared to store stock-out rate confi rmed the existence of the problem in the realization of internal product fl ows within retail stores. However, despite the occurrence of this problem, besides direct positive eff ect of inventory level on sale, its indirect eff ect was positive as well. Therefore, these results were analysed in the context of other similar studies. In addition to empirical research, the article also discusses certain implications of more effi cient organisation of in-store activities.

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“…Higher inventory holding costs, inaccurate information exchange and sales planning are just some of them. However, to retailers, one of the biggest issues is related to a decrease in store loyalty (Ehrenthal & Stolzle, 2013), which can have long term consequences on business performance. Even though the consumer switching rate is still undocumented, the annual cost of permanent shopper loss to competitors is estimated at US $1 million per every 200 shoppers (Gruen & Corsten, 2007).…”

Section: Introductionmentioning

confidence: 99%

The impact of store satisfaction on consumer responses in out-of-stock situations

Grubor

Milićević

Đokić

2017

RBGN

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Purpose -The purpose of this paper is to test a conceptual model by means of which we try to establish the influence of store satisfaction and other variables (gender, mobility and availability of alternative stores) on consumers' responses to out-of-stock (OOS) situations.Design/methodology/approach -The authors used a standardized questionnaire to gather data on consumer responses to OOS and then analyzed determinants including store satisfaction (for which reliability, validity and unidimensionality were tested). The survey was conducted in the four largest cities in Serbia. All respondents were interviewed randomly, through telephone calls, whereby 392 responses were gathered. The established hypotheses were tested by means of a multinomial logit model with the use of marginal effects.Findings -The results show that store satisfaction significantly affects three out-of-stock responses (store switching, postponement and product switching), whereas, positively in the case of product switching and postponement and negatively in the case of store switching. The results also show that store satisfied consumers, regardless of other factors, are not likely to switch stores in out-of-stock situations.Originality/value -As well as managerial implications, this paper included store satisfaction as an antecedent of consumer OOS responses for the first time. In addition, the impact of this variable on OOS responses was analyzed at both levels of the availability of alternative stores, gender and mobility.

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An examination of the causes for retail stockouts

Cited by 57 publications

References 41 publications

Unsaleable grocery products, their residual value and instore logistics

Unsaleable grocery products, their residual value and instore logistics

The Effect of Inventory Level on Product Availability and Sale

The impact of store satisfaction on consumer responses in out-of-stock situations

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