Investigating the factors contributing to stock-outs in online shopping using lean retail in South Africa

Abstract

Background: In the rapidly expanding e-commerce sector, stock-outs remain a critical failure, eroding customer trust and revenue. While lean principles are often applied to optimise internal inventory, this study proposes a paradigm shift: leveraging lean to transition the online retailer from a mere inventory holder to a dynamic logistics orchestrator.
Objectives: The objective of this study is to propose a dynamic fulfilment framework, grounded in lean principles, to eliminate stock-outs in online retail by transforming supply chains from static inventories into agile, networked ecosystems.
Method: This research investigated a South African case through 12 semi-structured interviews and workplace observations. It confirms that the root cause of stock-outs is systemic latency, where non-integrated systems and batch-processing create a misleading representation of available stock.
Results: Moving beyond the standard recommendation for system integration, this article introduces a novel dynamic fulfilment framework. We argue that by applying lean value stream mapping to the entire supply network, retailers can pre-empt stock-outs not only by improving forecasting but by creating a resilient, multi-sourced fulfilment ecosystem. When an item is unavailable in the primary warehouse, the system can instantly offer customers alternative fulfilment paths, such as direct supplier shipping or a peer-to-peer store transfer, thereby transforming a potential service failure into a demonstration of agility and customer commitment.
Conclusion: This research provides a forward-leaning, actionable model for using lean retailing to build not just efficiency, but unshakeable competitive resilience.
Contribution: This article contributes to the field of supply chain and retail management by identifying and analysing the key factors contributing to stock-outs in online shopping and demonstrating how lean retail principles can be applied to improve inventory availability and operational efficiency in the South African retail context.