Who has never gone through the frustrating experience of going to the supermarket in search of a specific product and discovering that it is not available on the shelves? This problem, known as operational disruptionoccurs when an item is present in the store’s inventory, but is not available to the consumer on the shelf. An unprecedented survey released by Mob2Con, the main data intelligence platform for retail operational efficiency, revealed that this phenomenon is particularly frequent on Mondays, bringing serious consequences for retail chains.
According to the study, which analyzed information collected in the last 12 months, operational disruption occurs with a higher incidence on the first working day of the week, reaching 21.10% of cases. Then come Tuesday (17.79%), Sunday (16.35%) and Wednesday (16%). Thursday, Friday and Saturday have the lowest rates, with 15.70%, 12.74% and 10.25%, respectively.
According to Carlos Wayand, CEO of Mob2Con, the high numbers related to Mondays can be explained by the large flow of customers during the weekend, combined with the reduction in the number of employees on Saturdays and Sundays. “While customers take advantage of the weekend to do their shopping at the supermarket, the supply of shelves ends up being compromised due to the employees’ days off, especially on Sundays. Thus, the greatest impact of the stockout occurs on Monday, as it is impossible to restock the store first thing in the morning, as this process usually takes all day”, explains the entrepreneur. “On the other hand, on Saturdays, the opposite occurs. Typically, shelves are stocked to avoid consumer frustrations over the weekend,” he adds.
Nightmare for retailers
Operational disruption poses a significant danger for retailers as it can have extremely negative consequences for businesses. In addition to the loss of revenue and profitability by not making the sale, the establishment may have its image damaged and run the risk of losing customers, who will look for the missing product in another store.
“Today, knowing how to efficiently manage inventory is critical to increasing customer satisfaction and avoiding damage to the brand, both financially and in terms of reputation. Keeping the shelves stocked is essential for the customer to feel satisfied”, says Wayand.
Currently, there are three different types of disruptions: commercial, logistical and administrative. The first two are caused by failures in the purchasing (commercial) and supply processes from the Distribution Center to the store (logistics). Administrative rupture occurs due to problems in inventory control or maintenance operations, when the inventory has not been adequately regularized.
Faced with these specifications, the founder of Mob2Con provides details on the most effective methods to prevent operational disruption from affecting the retailer’s relationship with consumers. “Currently, supermarkets already have technologies that allow them to monitor inventory in real time. Using these metrics is crucial to ensure that product replenishment is immediate, especially on weekends, when there is less manpower available and supply work needs to be even more precise”, concludes Wayand.
