Product availability can shift rapidly, but out-of-stock items shouldn't lead to missed sales or interrupted kitchens. Item substitutions solve inventory gaps by replacing unavailable products with similar alternatives, ensuring orders remain complete and operations stay on track. This process provides an intuitive way to handle inventory gaps while maintaining accurate billing and a professional experience for both distributors and operators.
Note: Item substitutions are available for Enterprise accounts only. Because this feature relies on real-time availability, accurate inventory and substitution data is essential. To enable item substitutions, contact your Pepper representative.
Managing Item Substitutions
How item substitutions are managed depends on whether a distributor uses an ERP integration:
ERP-managed: Substitution mappings and inventory data are fed from the ERP. Configuration is handled through the ERP integration, and the Item Substitutions tab in PMC is view-only.
Configured in PMC: Admins can set up and manage substitutions directly in the Item Connections tool in PMC. See Item Connections for instructions.
ERP setup requirements
For item substitutions to work, the system requires two synchronized data streams from the ERP:
Primary-to-substitute item mappings
Current "Available to Sell" and "Expected" inventory levels
If the ERP flags specific customers or chains as ineligible for substitutions, Pepper reads these rules directly. If a "No Substitute" flag is found, the substitution workflow is bypassed for that customer regardless of inventory levels.
The In-App Experience
Regardless of how substitutions are configured, the in-app experience works the same way. The flow a user sees depends on the substitution settings enabled for the distributor.
Step 1: Substitution is triggered at checkout
The substitution prompt activates when a buyer's requested quantity exceeds available inventory in their cart. A warning message appears: "1 item in your order has low inventory. Please review below."
Step 2: Buyer chooses how to proceed
The buyer is presented with options for how to handle the out-of-stock item:
Option 1 — Choose a substitute: The buyer is taken to a list of available options provided by the distributor.
If a buyer needs 40 units but only 20 are in stock, the system allows them to keep the original 20 and choose a substitute for the remaining 20.
Option 2 — Don't substitute: The buyer can still order the item, even if it is out of stock, though it might not be fulfilled. They will be alerted again when they place the order.
If the buyer fails to follow the substitution prompt upon clicking Place Order, they are given the option to choose a substitution before the order can be placed.
When to Use Item Substitutions
Substitutions work well in many scenarios but are not universally applicable. The table below outlines when they are the right fit and when it may be worth holding off.
Best Used When… | Consider Holding Off If… |
Data is accurate: Inventory is accurate, up-to-date, and maintains clear "Item A = Item B" mappings. | Data is inconsistent: Inventory counts are often incorrect or sync slowly. This leads to poor suggestions. |
Buyer choice is a priority: The buyer should be able to pick their own replacement during the checkout process. | "Forced Subs" are used: The warehouse automatically swaps items without asking the customer first. |
Out-of-stock items are visible: Buyers can see and add out-of-stock items to their cart to trigger the suggestion. | Out-of-stock items are hidden: Buyers are blocked from adding out-of-stock items entirely. (The prompt won't trigger.) |
Saving the sale is a goal: The objective is to protect revenue on staples like proteins, dairy, and produce when stock is low. | Strict contracts apply: Service includes schools or hospitals that have rigid "No Substitute" brand requirements. |
Reducing DSR workload is a goal: A self-service way to handle shorts is needed so sales teams can focus on selling, not fixing orders. | Manual control is required: DSRs are preferred to contact buyers every time an item is unavailable. |