A methodology proposal for implementing shelf ready packaging. A case study in food retail

The Portuguese retail market is increasingly competitive, whereby the unavailability of a product on the shelves of any point of sale has a negative impact on sales, resulting in lost sales opportunities and customer dissatisfaction; thus, the shelf product's replenishment activity should be analysed and made more effective and efficient. This study, developed in Modelo Continente Hipermercados S.A. retailer for food products, aims at increasing productivity in the point of sales through the implementation of Shelf Ready Packaging, a type of packaging used in product transport that facilitates the shelf replenishment of private label products in the point of sale. The Shelf Ready Packaging contains several product units allowing for direct replenishing on the shelves. Opportunities for improvement were identified in the various retailer departments involved in the implementation of Shelf Ready Packaging, specifically regarding: I) the culture of workers responsible for the replenishing, ii) the implementation of a standardized process, and iii) the monitoring replenishment performance. The main proposals focused: I) the improvement of information and product flows by reducing or eliminating those that do not add value, ii) the implementation of a Shelf Ready Packaging Handbook, iii) the definition of internal deadlines using the Time-To-Market document, and iv) raising staff awareness at points of sale to use these solutions. Implementing the Shelf Ready Packaging at the points of sale of the retail company results in a 52% decrease in time spent on replenishing at points of sale, which allow reallocating workers to other activities, for example, the ones that contribute to reducing product stockouts on the shelves.