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Fast moving consumer goods retailing is a highly competitive market. European retailers are continuously aiming to improve customer loyalty by offering good service. At the same time, they are struggling to reduce costs in order to stay competitive. One technology that promises to decrease the number of out-of-stocks while simultaneously reducing store handling costs is automatic store replenishment (ASR). At the heart of ASR systems lies software that automatically places an order to replenish stocks. Many European grocery retailers have started to implement such decision support systems. Surprisingly, although several retailers have automated their order process in the last few years, there is almost no academic source examining this topic at the level of the store. It is worth noting that other technologies In retail, such as RFID (Radio Frequency Identification) and the introduction of the barcode, have received far greater attention from the public and from researchers. Furthermore, while the topic of extent and root-causes of retail out-of-stock has received substantial interest over the course of the last years, the question to what extent existing and new practices remedy OOS is largely unanswered. In particular, there is a debate whether ASR improve or worsen OOS. Therefore, Dr. Alfred Angerer has well chosen a topic of both managerial and academic relevance.
List of contents
Research Framework and Design.- Literature Research.- Development of Models.- Quantitative Analysis.- Field Research and Managerial Implications.- Conclusion.- Appendix and References.
About the author
Dr. Alfred Angerer ist wissenschaftlicher Assistent bei Prof. Dr. Daniel Corsten am Kühne-Institut für Logistik der Universität St. Gallen.
Summary
Companies in the fast moving consumer goods industry increasingly look for technologies to improve customer satisfaction while reducing costs at the same time. A technology allowing to raise the availability of products on the retailers' shelves while providing cost reduction opportunities is automatic store replenishment (ASR). It is an intelligent software that automatically places inventory replenishment orders.
Drawing on several interviews and a comprehensive statistical analysis, Alfred Angerer proves the effectiveness of such ASR systems. The following questions are adressed:
" Which types of ASR system exist?
" What are the exact benefits of ASR systems?
" Which variables influence the ASR performance?
" Which ASR system is best suited for each product?
" How does a company best implement ASR systems?
