Fewer Out-of-Stocks

Retailers are typically out-of-stock of around 10% of their best selling products.

The impact of being out-of-stock of best sellers is clear:

  • Lost sales – if the product is not on the shelf, it isn’t being bought
  • Lost customers – 40% of customers leave the store without making a purchase if the product they are looking for is out-of-stock – many of them do not come back!

It is not only the store that is impacted. Suppliers lose sales too, sometimes to a competitor. Frustratingly, the supplier has the product in stock almost all of the time and could deliver it to the store within a day!

RPM gives store owners insight into their out-of stock-position on a daily basis - by store and by SKU. This information can be shared with suppliers so they can collaborate with the store to have the right product on the shelves at all times.

More importantly - RPM enables you to reduce your out-of-stocks by suggesting orders that provide the stock cover you need.

The RPM service

  • knows your best sellers
  • knows every store’s sales and stock history
  • provides demand-driven purchase orders ensuring stock cover for even unforeseen sales events.

RPM’s Smarter Ordering TM creates demand driven orders efficiently preventing sales from being lost at stores due to out-of-stocks and delivering sales increases of +4% to +8%. 

Since implementing RPM Retail our gross margin has improved +4%, the proportion of dead stock at each store has fallen by -$20K and the frequency of out-of-stocks on best-sellers has fallen dramatically.
Geoff Moth, Operations Manager, Toyworld New Zealand
Instead of being overwhelmed with the challenges of running their business, our members are excited by the easy solutions provided by RPM Retail on a daily basis. Regular, digestible, incremental steps towards excellence – that’s how you eat an elephant!
Dianne McAteer, C.E.O, Office Products Depot

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