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Expert Eye with Léa Gorreri - Out-of-stocks

Expert Eye

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Monoprix is working closely with brands to reduce out-of-stocks based on intelligence from a new solution by relevanC. Léa Gorrieri gives us the low-down.

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In a few words, could you describe the "ZeroRupture" solution?

ZeroRupture is a system for sharing logistics data with Monoprix suppliers. It aggregates various types of data: till receipts, stock data, customer data, and data from Captana cameras installed on Monoprix store shelves (which allow real-time inventory information to be captured). The solution allows suppliers and retailers to understand the origin of store out-of-stocks and better manage their replenishment. Thanks to the platform, they can make queries on each product, category, brand and store. The supplier can, among other things, measure lost sales, understand the stock level of each SKU at the warehouse, store, and shelf level, and better manage their sales efforts.Camera monitoring shelf stock level

What inspired the creation of ZeroRupture? What specific problems were you trying to address?

Out-of-stocks are a major headache for food retailers and their suppliers, costing them billions in lost sales (5 billion euros in France in 2022) and frustrating customers. To tackle this issue, collaboration is key. Sharing accurate, standardised data is essential to understanding the problem and developing joint solutions to keep shelves stocked and customers happy.

Out-of-stocks are a real headache for customers. How does "ZeroRupture" directly address this problem and make things easier for retailers and brands?

ZeroRupture empowers suppliers with real-time visibility into the stock levels of each of their products across all Monoprix stores. This transparency fosters a collaborative environment where Monoprix and its suppliers can efficiently address out-of-stocks through:

  • Reliable alerts and data for field sales teams: Ensuring faster response times and targeted action.
  • Early detection of restocking issues: Identifying and resolving technical problems before they become major disruptions.
  • Analysis of customer substitution patterns: Understanding which products customers choose when their preferred item is out of stock, enabling better inventory management.
By sharing reliable data openly and creating joint action plans, ZeroRupture puts the customer first and ensures product availability.

You've highlighted that brands traditionally rely on third-party data ( consumer research) to understand their product performance and potential out-of-stocks at other retailers. But how reliable is this approach?

The data is often broad, potentially inaccurate, and may not align with the retailer's own information. ZeroRupture addresses these issues by providing a direct line of communication between retailers and suppliers. Monoprix, for instance, shares precise stock data with its suppliers, eliminating guesswork and ensuring everyone is on the same page. This shared understanding allows for more effective collaboration and targeted solutions to optimize inventory management and prevent out-of-stocks.

Launching such an innovative solution was certainly ambitious. What were the main challenges you faced during implementation?

The relevanC team, while having data expertise, needed to rapidly expand our knowledge in logistics, a topic we hadn't extensively addressed before. Understanding all the relevant indicators was crucial. Additionally, we had to integrate various new data sources and ensure their reliability for the successful launch of the solution.

You launched the solution with Monoprix in March 2024. What has been the feedback from suppliers?

The initial feedback is very positive! We have several suppliers on board to date. They are very satisfied with the granularity of the available data, the ease of use of the platform, and the start of our collaboration.

 

The solution offers four levels of service, ranging from the simplest to the most comprehensive. Could you describe them for us?

Absolutely! Here's a breakdown of the service levels:

Level 1: The supplier can easily download an Excel file containing the total out-of-stock rate for their brand, either at the store or warehouse level.

Levels 2 and 3: These levels grant the supplier access to an analysis module within the platform. Here, they can run queries to delve deeper into the data. Level 2 provides insights into out-of-stock rates, lost sales, and substitute products, broken down by EAN (European Article Number), at the store or warehouse level. Level 3 goes a step further by incorporating data from Captana cameras, allowing suppliers to visualise out-of-stocks directly on store shelves.

Level 4: This is a bespoke service that represents the highest level of collaboration. It involves implementing joint action plans based on a thorough logistics audit conducted by both relevanC and Monoprix. The goal is to foster a close working relationship with Monoprix's logistics team to achieve optimal results as efficiently as possible.


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