Out of Stock (OOS) Rate

Out-of-stock (OOS) rate measures the percentage of products unavailable for purchase at a given time, indicating how often customers face stockouts. It reflects lost sales opportunities when items are sold out.

Causes of stockouts: Delivery delays, logistics issues, insufficient cash flow, and poor inventory management.

Importance of measuring OOS rate:

- Highlights customer service issues due to unavailable products.

- Aids in accurate demand forecasting.

- Improves marketing effectiveness by ensuring product availability.

- Prevents losing customers to competitors.

Calculation:

OOS Rate = (Number of SKUs Out of Stock) / (Total Number of SKUs)

For example, if 10 out of 100 SKUs are out of stock, OOS rate is 10%.

How to reduce OOS rate:

- Improve demand forecasting using historical data and inventory analysis.

- Use pricing strategies to manage demand and slow down sales during low stock periods.

Proactive management of OOS helps maintain sales and customer satisfaction.