Before you fix it, measure it right!

Most CPG teams claim they're focused on on-shelf availability, but they're actually measuring different things - and solving the wrong problems as a result. Discover the five critical mistakes teams make, from relying on misleading metrics like OTIF to ignoring phantom inventory, and learn how to finally measure and fix on-shelf availability the right way.

On-Shelf Availability (OSA) is on every customer team’s radar - yet most never take the time to align on what it actually means or how to measure it.

What if the problem isn’t what you think it is?

Walk into any customer team meeting and ask: How are we doing on On-Shelf Availability (OSA)?

You’ll hear some version of: “We’re making progress - DC in-stock is strong, fill rates are high.”

But none of that answers the real question: Was the product on the shelf when the consumer showed up to buy it?

That’s what OSA is.

And until teams align on that definition - and actually measure that outcome - most well-intentioned “fixes” end up solving the wrong problem.

Here’s where teams get it wrong - and how to fix OSA the right way.

1. Don’t assume you’re aligned

Every team says they care about OSA. But, start asking how they measure it - and you’ll get different answers.

  • One team tracks fill rate
  • Another looks at DC availability
  • A third is watching POS trends

If you’re not aligned on what OSA means, you’re not solving the same problem.

On-Shelf Availability = the product is physically on the shelf when the consumer expects it.

That’s the target. Start there.

2. Incentives drive action - but misalignment kills momentum

One of the biggest barriers to OSA improvement isn’t complexity - it’s incentives.

  • Replenishment teams optimize for fill rate
  • Demand planners are judged on forecast accuracy
  • Commercial teams might not even have OSA on the radar

You can’t fix OSA with siloed incentives. It requires shared goals - and shared accountability.

Everyone from customer planning to customer execution need to understand how their work affects the product being on the shelf - and be motivated to act accordingly.

3. Stop relying on the wrong proxies

Let’s say your on time, in full (OTIF) is strong. Everything looks great on paper.

So… that means the store shelves are full with the right product, at the right store, at the right time, correct? Not necessarily.

Metrics like OTIF don’t tell you what the consumer sees. And that’s all that matters.

Instead, ask:

  • Was the product available for purchase?
  • Did we miss expected sales?
  • Are phantom inventory issues distorting the picture?

Even simple steps - like comparing expected vs actual sales at the store-SKU level - can reveal real OSA issues hiding behind seemingly positive metrics.

4. In the Store ≠ On the Shelf

Inventory “in-stock” isn’t the same as inventory on shelf. And that’s where many efforts fall short.

Phantom inventory, slow restocking, mislabeled shelves, poor backroom processes - they all create disconnects between what the data says and what the consumer sees.

To fix OSA, you need to measure the full journey:

Manufacturer → DC → Store → Shelf.

At each step, track what actually happened. Because only looking at the last stop won’t help you understand the root cause of OSA issues - or what action to take next.

5. Focusing on building a system, step-by-step

The most effective teams don’t treat OSA as a one-time initiative. They operationalize it.

  • They assign owners.
  • They investigate root causes.
  • They adapt workflows to close the gap between customer planning and in-store execution.
  • They build habits around accountability, visibility, and actionability.

And - they know OSA improves when you treat it as a shared responsibility - with defined roles, consistent processes, and feedback loops that actually drive change at the shelf.

The bottom line:

OSA isn’t a reporting problem. It’s a measurement problem. A people problem. A process problem.

Before you try to fix it, make sure you’re measuring it right.

Because once you’re aligned on what matters, you’ll finally start fixing what does.