Business Intelligence and FMCG Glossary: #sellout
Sell Out
¿What is the sell out?
The sell out is the turnover or number of units of a brand or reference sold to final consumers at points of sale. It is what “comes out” of the stores and this is why the term “sell out” is used.
These sales can be aggregated centrally (a distribution panel is based on “sell out” sales) but they are especially relevant to analyze at point-of-sale level.
For manufacturers delivering their products to the distributors’ logistics platforms, having access to sell-out data at store level is the only way to achieve sales visibility at the finest level and understand the famous “moment of truth” or shopper/product encounter.
Sharing or not this information with suppliers is up to each distributor and depends a lot on the commercial strategy of each of them, as well as on the country’s business culture. However, data-sharing collaboration between manufacturers and distributors is developing worldwide in a joint effort to develop markets.
It is also very interesting to be able to compare “sell in” and “sell out” data to calculate and adapt the stock levels in stores or warehouses to consumer demand and improve supply chain efficiency.
