For a manufacturer, starting to receive sell out data by store from a distributor’s must be a change and should impact the way the entire company operates, from sales to marketing, shopper marketing, supply chain and finance. It means starting a journey to integrate in the day to day of the company the learnings and insights derived from this new and rich source of information to improve its operational excellence.
The key levers that can be activated thanks to the availability and processing of sell out data are the classic ones that define the Revenue Growth Management process in FMCG:
Obviously, we would like to implement everything at once, but as previously said, it is a “journey” and the best way to put a solid foundation to a strategy and operations based on data is to go step by step reaping the fruits of this new process at each stage.
So, to the question: “with what key levers to start a basic sell out analysis?” I would answer: “with the one that seems to be most relevant for the category and the channel in question”.
Perhaps it is an answer that helps very little, but it is the most logical. For a manufacturer of “liquid” products such as milk, water or beer that have as characteristics large pack sizes and high levels of rotations leading to in-store replenishment problems, reducing out of stocks will clearly be a priority. On the other hand, for those who are dedicated to manufacturing chocolate bars, a category where fierce competition is focused on the field of promotions, it will be necessary to optimize above all promotional mechanisms and visibility.