The Index is calculated from daily point-of-sale and e-commerce transaction data reported from major chains’ macro inputs, including seasonality, events, and holidays, as well as the COVID-19 spread rate by region, the press release explains. To this data set IRI applies proprietary algorithms, which leverage artificial intelligence and advanced analytics to produce accurate in-stock rates by U.S. state and region for edible and non-edible products.
The solution allows users to choose between “In-Stock Percentage” and “Supply Index.” The In-Stock Percentage metric provides insight into in-stock rates in absolute terms; the Supply Index metric allows users to compare current rates with pre-COVID-19 levels using data collected during the week ended February 23, 2020, as a baseline.
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Key insights revealed in the press release:- Supply is still lower than it was before the pandemic, but it has remained steady in recent weeks.
- In the week ended May 10, categories in the edible section remained consistent with the prior week; the beverage department was the only exception, which took a slight dip.
- In the non-edibles section, the home care and general merchandise departments saw slight declines; the other departments remained generally consistent.
“The insights gleaned from this index can be further enhanced by comparing them with data from theIRI CPG Demand Index, which measures consumer purchases, by dollar sales, against the year-ago period,” Appel continued. “As the Demand Index has shown, the pandemic has caused large increases and fluctuations in consumer purchasing, but the out of stocks will impact their overall and by-brand purchasing. When used together, IRI’s indices allow businesses to understand where they need to focus their efforts to optimize their production and supply chains to meet consumer needs in the rapidly changing environment.”