Progressive Grocer

JUN 2016

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184 | Progressive Grocer | Ahead of What's Next | June 2016 Supply Chain Operations Visible Touch Technology is helping grocers get a better handle on out-of-stocks at the store level. By Jenny McTaggart W hen two of the world's top retailers make signifcant changes in their oper- ations to combat out-of-stocks (OOS), you know it's a big problem. Both Walmart and Target have made recent news headlines because they're cutting down on product assortment as just one potential antidote. Moreover, at Minneapolis-based Target, former fnance chief John Mulligan was moved to the post of COO to help with out-of-stocks and other supply chain issues. Since then, the retail chain has reportedly planned to tighten deadlines on deliveries to its warehouses and initiate other penalties for late or inaccurate orders. While these grand eforts underscore the fact that out-of-stocks are a huge problem for the industry — the latest estimate places the out-of-stock rate at 8 percent on average — several experts in the technology arena think that the most efec- tive solution is actually much simpler. Tey're encouraging retailers to take another look at their individual stores — more specifcally, the potential of store-level inventory visibility. Jef Kennedy, president of West Des Moines,

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