Out-of-stock is a common phenomenon in supply chains, where a product is no longer available for sale due to stock depletion before a new delivery is made. This problem, which occurs both in-store and online, can have serious consequences for companies in terms of lost sales, customer dissatisfaction and tarnished reputation. In an increasingly complex and dynamic supply chain environment, it is essential for retailers and distribution players to master this problem in order to optimize their inventory management and maintain customer satisfaction.
An out-of-stock condition occurs when demand for a product exceeds the available supply at a given time, preventing customers from purchasing the product, whether in-store or on an e-commerce site. It usually occurs when stock is depleted before new goods are delivered or replenished. Stock-outs can be temporary or prolonged, depending on how quickly corrective action is taken.
The Stock Break Cycle
- Stock depletion: A product’s stock is depleted, either due to unexpected demand or inefficient inventory management.
- Lack of replenishment: Replenishment does not occur on time due to supply problems, delays in the logistics chain or excessively long production lead times.
- Impact on Sales and Customer Satisfaction: Stock-outs prevent consumers from making purchases, resulting in lost sales and dissatisfaction that can damage brand loyalty.
