This research essay examines the impact of out-of-stock (OOS) and overstocking (OS) occurrences within distribution channels, focusing on the challenges faced by grocery retailers. It explores the causes of OOS and OS, including in-store mismanagement, poor inventory planning, and staff-related issues. The essay delves into the factors affecting on-shelf availability (OSA) and the consequences of both OOS and OS, such as customer dissatisfaction, lost sales, and the risk of customers switching brands. It emphasizes the need for improved in-store processes, technology adoption (ERP, PDAs, PoS), and employee training to enhance inventory performance and OSA. The essay concludes by highlighting the importance of understanding inventory automation, setting re-order thresholds, and establishing a proactive inventory management system to mitigate the negative impacts of OOS and OS occurrences.
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