When to Use This Checklist

Use this checklist when stockouts stay elevated despite forecast and replenishment tuning. It is built for cross-functional diagnosis across planning, supply, and store execution.

  • SKU stockout rate remains above target for four or more consecutive weeks.
  • ERP, DC, and store in-stock numbers disagree on the same items.
  • Store teams frequently execute emergency transfers or manual overrides.

Root-Cause Diagnostic (First 10 Days)

  • Demand signal: compare forecast error in promotion and non-promotion periods.
  • Supply reliability: isolate vendor OTIF, fill rate, and lead-time variance.
  • Allocation logic: audit min-max rules, pack constraints, and store clustering.
  • Store execution: measure backroom-to-shelf cycle time and phantom inventory.

30-60-90 Day Intervention Plan

Sequence interventions by impact and operational complexity.

  • 0-30 days: fix top 20 high-revenue SKUs and run a daily exception huddle.
  • 31-60 days: rebalance safety stock by volatility tier and enforce supplier SLAs.
  • 61-90 days: automate exception routing and institutionalize weekly review.

Regional Guardrails (US, UK, EU)

  • US: prioritize promotion volatility and multi-DC transfer rules.
  • UK: focus on smaller-store assortment constraints and short lead-time swings.
  • EU: maintain country-level buffers for cross-border lead-time and regulatory differences.

FAQ

  • How quickly can stockouts improve?

    Most teams see meaningful movement in top SKUs within 30 days if exception reviews and scan discipline are enforced daily.

  • Where should we start?

    Start with the highest revenue and highest substitution-risk categories because they produce the fastest measurable margin recovery.

  • Do we need new forecasting software first?

    No. Initial gains usually come from better exception handling and execution cadence before major platform replacement.