Retailers and consumer goods manufacturers have struggled for decades closing Out-of-Stock (OOS) rates beyond average levels around eight percent. Resulting in frequent lost sales and poor customer experience, this On-Shelf Availability (OSA) issue has become so prevalent and accepted that many have deemed its impact as the “Trillion-Dollar Black Hole.” As COVID-19 exacerbated the problem and drove OOS significantly higher than historical rates, the pandemic’s effects have made it clear that the OSA issue can no longer be overlooked.

As new technology solutions emerge, retailers and CPG companies finally have the means to address the “Trillion-Dollar Black Hole” by capturing real-time shelf data with the latest technologies. By integrating computer vision with artificial intelligence, they can use information of what is actually on-shelf to drive more efficient operations, improve customer experience, and regain lost sales.

The first of a series of perspectives on OSA, A&M Consumer and Retail Group, with special guest commentary and groundbreaking shelf data from Richard Schwartz, President and CEO of Pensa Systems, explores the root of the “Trillion-Dollar Black Hole” and how retailers and CPG companies can fix the legacy problem.

Read our full article here.