T3Ci Acknowledged as Significant Contributor to GMA FMI NACDSSponsored Guide to Retail OutofStock Reduction



T3Ci, a rapidly growing consumer product good (CPG) technology and service provider, is proud to announce it was recognized as a data partner and significant contributor to the most thorough and current guide on out-of-stock reduction. The guide, authored by Thomas W. Gruen, Ph.D., University of Colorado at Colorado Springs, and Dr. Daniel Corsten, IE Business School Madrid and funded by a grant from the Procter & Gamble Company, not only offers CPG companies and retailers strategies to reduce retail out-of-stocks, but how to also reduce costs associated with out-of-stocks and improve the overall customer shopping experience.

Out-of-stock (OOS) is a central economic factor in retail and is a rich and intriguing area of applied research. T3Ci has built an extensive science-based experience in measuring and reducing OOS, which helped build a comprehensive and robust set of definitions for the many phenomena around OOS. Over the past three years, T3Ci has built an industry-leading set of algorithms for estimating the true inventory position in a store based on commonly available transactional information. This has allowed T3Ci, and its customers, to gain more accurate insights into the root causes of OOS where computer driven replenishment is used. Some of this work, as well as insights on the use of RFID for OOS reduction, is reported in this wide-ranging and comprehensive report.

"T3Ci has been one of the most active CPG solution providers in researching new approaches to resolve out-of-stocks," said Dr. Richard Swan, Chief Technical Officer, T3Ci. "We have worked with vast quantities of downstream data at four of the six largest global CPG manufacturers and we have applied advanced, scientific research techniques rather than empirical methods. This enabled us to build new, non-intuitive insights on how to improve on-shelf availability. We have then been able to test our insights with a number of large scale in-store interventions. It was rewarding to collaborate with these leading academic researchers and assist in raising the scientific level of analysis of retail processes."

The guide has received a broad industry-level endorsement and is supported by the Grocery Manufacturers Association (GMA), the Food Marketing Institute (FMI) and the National Association of Chain Drug Stores (NACDS). This clearly demonstrates that solving out-of-stocks is a top-of-mind issue in the retail and CPG industry today.

"Store and shelf out-of-stocks was clearly an industry topic that needed a brand new approach," said Dr. Jonathan Golovin, Chairman and Chief Executive Officer, T3Ci. "The traditional approach was reactive and focused on refilling the shelves only after they went empty: this could be compared to filling up your car with gas only after having run out of gas. As prescribed and explained in this report, T3Ci uses a proactive scientific approach for solving out-of-stocks before they occur. This solution addresses the actual root cause, the why of stock-outs, thereby enabling corrective interventions before the fact. By using T3Ci On-Shelf Management, T3Ci customers are experiencing reduced OOS rates today: this gives them both increased sales and a better overall in-store experience for consumers."

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T3Ci Acknowledged as Significant Contributor to GMA FMI NACDSSponsored Guide to Retail OutofStock Reduction