PROJECT OSA

On Shelf Availability
ECR, Thailand

How importance of OSA

On-Shelf Availability (OSA) is the ultimate measure of supply chain service.
The shelf is where the supply chain touches the shopper and this first
moment of truth is the very reason the supply chain exists; to make product
available for people to buy.
The availability of product on shelf is of major importance to both retailers and
suppliers and it receives a great deal of focus.

OSA : Global Research

Existing Availability Research

(Modern Trade Benchmark)

Below is the most widely used, publicly available research concerning OSA
(Gruen, Corsten & Bharadwhaj, 2002, 20 countries & 70,000 consumers, multiple product categories).

Worldwide Average Consumer Responses

15%

9%

Do not Purchase

26%

Substitute- other brand

Substitute- same brand

31%

Buy them at another store

19%

Delay purchase

Using traditional calculations, for each Out of Shelf (OOS) this equates to approx:
35% manufacturer losses, 3:1 OSA ratio (3% OSA improvement = 1% turnover gain)
40% retailer losses, 2:1 OSA ratio (2% OSA improvement = 1% turnover gain)

OSA : Global Research

Worldwide average OOS rate ~ 8%

Promotional OOS rate ~ 16%
In spite of heavy investment to improve
supply chain, Out-of-stock
remains a large problems for retailers,
distributors, and manufacturers.

*Reference: Gruen, May 2007

The reason why ECR Thailand give high priority to OSA improvement
and set up as a ECR working project is to meet consumer satisfaction
and achieve retailers and manufacturers business goals.
To deliver great product On Shelf Availability, collaboration across
manufacturers, retailers, and stores is crucial. We all need to work
together to minimize losses along the chain. It is very important to
continuously improve OSA, so that the consumers can trust us every
time they can buy the products they want.
According to significant benefit of OSA, the OSA working team have
defined OSA definition, standard loss tree, loss owner, standard
solution, KPI. This is also the opportunity for us to share knowledge
and learn from each other.

Step 1
Understand

Step 2
Develop

Step 3
Pilot

Step 4
Share

Understand OSA definition and measurement process

Understand current OSA measurement process of each company e.g.

number of SKUs measured, frequency, time, store visit plan, store
coverage, etc.

As measurement process are variety across industry, ECR OSA working

team has agreed to align only OSA measurement definition :
OOS (Out of shelf) = zero piece on shelf
OSA (On Shelf Availability) = 100% - OOS

Step 1
Understand

Step 2
Develop

Step 3
Pilot

Step 4
Share

Developing Loss tree and Solution

ECR OSA working team has shared their practical experiences and
knowledge to define standard OOS loss tree (4 levels) ensuring real
rootcause is identified

Then come up with solutions, loss owners, KPI and period in order to turn
into action for further improvement

Link to standard
loss tree
developed by
ECR-OSA working
team.xlsx

Step 1
Understand

Step 2
Develop

Step 3
Pilot

Step 4
Share

ECR OSA working team has agreed to do pilot on OSA implementation

Manufacturers
Unilever
Colgate (K.Manutsawat)
Nestle (K.Am)
P&G (K.Natty)
KAO (K.Tat)
L'oreal (K.Anu)
Tipco (K.Paisan)

vs
vs
vs
vs
vs
vs
vs

Retailers
Tesco , Big C, Makro
Tesco , Big C
Big C
Watsons
Big C
Tesco , Big C
Makro

Step 1
Understand

Step 2
Develop

Step 3
Pilot

Step 4
Share

To share the summary result from pilot implementation will be posted on

ECR website soon.

ECR-OSA Working Team