Shelf Availability: Lifting DIFOT into Retail RDCs
Shelf availability is the moment of truth. Customers don’t care that your containers arrived on time, your pallets cleared the RDC, or your ASN matched the carton count. They care whether the product is on the shelf when they’re standing in the aisle. In Victoria for example —where most FMCG suppliers ship into retailer RDCs concentrated across Melbourne’s west (Derrimut, Truganina, Laverton North) and south-east (Dandenong, Keysborough)—availability hinges on mundane but decisive mechanics: forecast accuracy by cluster, allocation logic, pallet conformance, booking windows, transport reliability, and how cleanly the back-dock hands stock to the shelf-replenishment cycle.
Why shelf availability breaks (and where to look first)
Most availability gaps trace back to a handful of recurring failure modes:
- Forecast and allocation drift
- Averages hide reality. Cluster demand in Melbourne behaves differently to regional Victoria, and stores within metro clusters diverge during weather spikes or events.
- Allocations lag plan changes. Sales pull forward demand for promotions or display builds but allocations and DC waves don’t update in time.
- RDC non-compliance
- Pallet spec miss (height, overhang, wrap gauge, labelling position).
- ASN mismatches (SSCCs not aligned to what’s physically arriving).
- Booking windows missed, or trucks queued with incorrect time bands.
- Promo readiness failure
- Uplift factors guessed, not modelled; cannibalisation not accounted for.
- POS and display stock arrive out of sequence with base stock replenishment.
- Store back-rooms lack space or shift capacity to execute the plan.
- Transport and wave design
- Loads arrive outside shelf-replenishment cycles; pallets sit in the cage overnight and miss peak trading.
- Route plans and linehaul cut-offs assume smooth traffic despite Melbourne’s works and peak-hour realities.
- Data noise and slow feedback
- Item masters, carton counts, and pack configurations are out of sync across systems.
- Exceptions are closed slowly; the root cause is guessed rather than measured.
The fix is not a single silver bullet. It’s a set of small, repeatable behaviours that tighten hand-offs from plan to shelf.
Start at the top: plan what stores actually need
1) Forecast by cluster and event, not just by state
- Cluster Victoria by store archetype (CBD convenience, suburban family, regional growth, tourist corridor). Patterns diverge on heatwaves, school holidays, AFL finals, and public holidays.
- Use short-interval demand sensing for Melbourne metro: weather swings and event calendars cause real, same-week variance.
- Model cannibalisation for promos and NPD: one SKU’s lift often steals from a close substitute. Don’t double-count.
2) Allocation rules that reflect reality
- Establish service-level tiers by SKU and store type (e.g., 98% for high-rotation essentials, 95% for mainstream, 90% for long-tail).
- Pre-allocate promotional stock to clusters with proven uplift; hold a central protection pool to top-up high-performing stores mid-week.
- For fragile or bulky SKUs, pre-build store packs where the retailer allows; this reduces back-dock handling time and shelf delay.
Outcome: fewer “phantom” OOS created by allocations that didn’t reflect the real demand mix.
Make the inbound unquestionable: RDC compliance that just works
3) Pallet conformance is non-negotiable
- Lock height/weight limits, overhang, wrap gauge, corner boards, label positions into your pick and pack SOPs.
- Print a one-page RDC spec card for your DC and third-party pack sites. Photograph one pallet per SKU per day at the end of the wrap, archive shots against SSCC.
4) ASN and SSCC discipline
- Generate SSCCs at the moment a pallet is finalised, not earlier.
- Transmit ASNs as soon as pallets are staged, not after truck departure.
- Reconcile ASN vs received daily with your customers and close exceptions within 24 hours.
5) Booking windows and dwell
- Reserve booking slots aligned to your pick cycles and transport waves—do not leave it to “first available”.
- Measure arrival vs booked time and dock-to-offload dwell; escalate repeat offenders with the carrier.
- For fast-moving lines, aim for morning arrivals that flow into same-day shelf cycles.
Outcome: higher acceptance rates, fewer reworks, and reliable dock-to-shelf timing.
Transport and DC waves that match store reality
6) Align truck wheels with shelf cycles
- Map store replenishment windows by cluster. Time your RDC arrivals so stock hits the shelf before peak trading, not after.
- If your Melbourne DC is west-based and you’re serving south-east stores through an RDC, stage earlier to allow traffic buffers on Mon–Wed.
7) Route design and capacity
- Use time-of-day routing to avoid peak congestion corridors. Shoulder deliveries can lift effective DIFOT without extra fleet.
- Maintain a small surge carrier panel for promo weeks; buying a few extra fixed slots is cheaper than missed sales and penalties.
8) Cross-dock vs stock
- Cross-dock high-velocity lines and promotional pallets.
- Hold long-tail and build to hit store clusters, not just ship when ready.
- Anchor this in your WMS so teams aren’t making manual calls on the dock.
Outcome: trucks show up when stores can actually convert pallets into shelf presence.
Promo readiness: where availability reputations are made (or lost)
9) Forecast uplift with discipline
- Don’t rely on a flat uplift factor. Use like-event history, weather overlays, and store-level elasticities.
- Identify display-driven volume vs price-driven volume; they behave differently.
10) Sequence POS and base stock
- Deliver base stock that lifts shelf capacity before POS lands.
- Where possible, use pre-built display units or outer carton configurations that speed execution.
- Confirm store back-room capability for bulky displays; if space is tight, stagger deliveries.
11) Protect the week
- Hold a cluster-level top-up pool for the first 48–72 hours of promo to rescue outperforming stores quickly.
- Stage spare booking slots; one rescue slot per day during the first promo week repays itself.
Outcome: promos start strong, stores don’t run dry by Thursday, and you avoid emergency loads.
Data hygiene: clean masters, clean moves, clean KPIs
12) Item masters and pack logic
- Standardise case counts, dimensions, weights, barcodes, and inner/outer pack relationships across ERP, WMS, and retailer systems.
- Lock carton-to-shelf conversion logic to prevent non-conforming planograms.
13) Exceptions taxonomy
- Use a common exception code set for late, partial, damaged, mislabeled, over-height, missing SSCC, missed booking, carrier-caused, DC-caused.
- Close exceptions in 24 hours and publish weekly Pareto charts (top 5 causes, corrective action owner, due date).
14) Control-tower visibility
- One dashboard: forecast accuracy by cluster, DIFOT to RDC, ASN accuracy, dock dwell, pallet conformance failure rate, store OSA (where available), and promo sell-through.
- Colour what you pay for: if you’re penalised for missed bookings or non-conformance, put it at the top.
Outcome: faster learning loops and fewer repeat errors.
People and cadence: operational rhythm that keeps shelves full
15) A weekly trading rhythm
- Monday: last week’s OSA and DIFOT review; plan changes for this week; promo check.
- Mid-week: exception stand-up (15 minutes); close aged issues; confirm rescue slots.
- Friday: next week VLAN (vessel loads, linehaul, allocations) and DC labour plan.
16) DC floor standards
- Pallet QA before wrap; photo archive with SSCC; label placement checks.
- A visible “RDC spec wall” at end of each line; spot-check every hour in promo weeks.
17) Sales–Supply alignment
- 30-minute sales & supply huddle at the start of each promo: uplift vs plan, store feedback, shelf execution blockers, and top-up decisions.
Outcome: fewer surprises and faster cross-functional decisions.
Metrics that actually move shelf availability
Track a short list, automate as much as possible, and tie a subset to partner payments:
- Forecast & allocation: WMAPE by cluster and SKU tier; allocation adherence (% stock to plan).
- Inbound reliability: DIFOT to RDC (P50/P90), dock dwell, pallet conformance fail %.
- Data integrity: ASN accuracy %, SSCC scan failures per 1,000 pallets, master data defect rate.
- Promo health: day-1 and day-3 sell-through vs plan; top-up response time.
- Shelf outcomes: OSA %, shelf-gap minutes per store (where supplied), lost sales estimate (signals).
- Cost & sustainability: cost-to-serve per case; packaging exceptions; tCO₂e per delivery (optional but useful for internal trade-offs).
A 30–60–90 day plan to lift DIFOT and OSA in Victoria
Days 1–30: Stabilise compliance and visibility
- Publish RDC spec cards and embed photo QA at pallet wrap; train crews.
- Shift SSCC creation to point of pallet completion; send ASNs at staging.
- Stand up a single dashboard for DIFOT, pallet conformance, dock dwell, and ASN accuracy.
- Lock a booking discipline: set target arrival bands by SKU tier and cluster.
- Run a Melbourne promo readiness clinic on your next two campaigns.
Days 31–60: Accelerate flow and close exceptions
- Re-cut DC waves to align with retailer booking windows and store shelf cycles.
- Introduce cluster-based allocations and a small protection pool for top-ups.
- Add shoulder or night route windows to protect morning shelf availability.
- Implement a 24-hour exception closure SLA; publish a weekly Pareto with root-cause owners.
Days 61–90: Embed resilience and scale
- Formalise surge carrier capacity and one rescue booking slot per day in promo week one.
- Pilot pre-built store packs or display units where allowed to speed floor execution.
- Add short-interval demand sensing (weather/events) for Melbourne metro to adjust allocations intra-week.
- Tie small performance fees to pallet conformance and on-time arrival tiers with carriers and pack partners.
Common pitfalls—and how to avoid them
- Treating OSA as “a store problem.” If inbound pallets and ASNs are wrong or late, back-dock is already behind. Fix upstream.
- Flat uplift factors. Use like-event and cluster logic; promo uplift is not uniform across Melbourne.
- Late ASNs. If you transmit after departure, the RDC can’t plan labour or lanes. Send at staging.
- One carrier, one time band. Diversify and use shoulder windows to protect day-1 shelf cycles.
- Spec drift on pallets. Small misses trigger rework and delays. Photo QA plus a spec wall cuts failures fast.
- KPI sprawl. Five to seven metrics, automated and reviewed weekly, beat twenty that no one owns.
How Trace Consultants can help
Melbourne OSA diagnostic (2–3 weeks)
- Map forecast-to-shelf hand-offs across your top 30 SKUs. Quantify where minutes and cases are lost: allocation rules, booking discipline, pallet conformance, dock dwell, and promo sequencing.
RDC compliance and ASN uplift
- Rewrite pallet and ASN SOPs, implement photo QA tied to SSCCs, and train DC teams. Put in place a 24-hour exception closure process with a standard code set.
Wave and route redesign
- Align DC pick waves and linehaul departures to retailer bookings and store shelf cycles. Introduce shoulder routes to protect morning availability.
Promo readiness engine
- Build cluster-based uplift models, cannibalisation logic, and a top-up protection pool with pre-booked rescue slots for week one.
Control-tower and KPIs
- Stand up a single dashboard covering DIFOT, pallet conformance, ASN accuracy, dock dwell, promo sell-through, and (where available) OSA. Automate data feeds and set weekly cadences.
Capability and cadence
- Coach your supply, DC, transport, and sales teams on the 30–60–90 plan; establish a durable weekly rhythm and close-loop CI.
Sustainability and cost-to-serve
- Reduce rework, packaging waste, and redundant kilometres with better conformance and route timing—lowering cost while protecting service.
Raising shelf availability in Victoria isn’t about throwing more inventory at the problem. It’s about precision: forecast by cluster, allocate with intent, build compliant pallets, send clean ASNs, hit the right booking windows, and time arrivals to store shelf cycles. Do those things consistently, measure them on one page each week, and availability rises without waste. That’s the kind of reliability retailers reward and customers notice.
