Ensure On-Shelf Availability for DSD Products:
Key DSD categories are associated with more frequent trips per shopper and higher absolute dollar value sold. Magic™ works as effectively with direct-delivered categories as it does with warehouse-distributed categories.
Supermarket operators are challenged to meet shopper expectations in high-awareness DSD categories, where the out-of-stock problem is frequently magnified. Magic™ can vastly improve performance on key items and help retain those profitable trips.
Solve the “Sunday Problem”
Leading retailers recognize that the consequences to stakeholders are too great to leave the re-ordering process solely to the vendor’s discretion.
Among the top 7 most frequently shopped categories, 5 are DSD-dominated, and bread, milk and carbonated soft drinks are especially significant, because they drive shopper trips to the store.
Reliable on-shelf availability of high-demand supermarket items is just as important when products are direct-store delivered as when they are distributed via the internal warehouse.
Daily variations in service levels are of particular concern to grocers. Sunday afternoon service gaps hit top DSD categories especially hard, with item availability falling as low as 91.3%, while promoted item availability drops to an average of 85.1%.
Industry research (GMA, Roland Berger) indicates that increasing DSD on-shelf availability can increase sales by as much as 2.9%, the equivalent of $75,000 annually for a typical supermarket.
With Magic™ automated ordering of DSD products in supermarkets, we have documented significant improvements in DSD on-shelf availability, sales, and service levels to the stores. In addition, we see reduction in scheduled deliveries, and overall shrink.