Inaccurate store inventory is a common challenge for retailers, as it can lead to lost sales, customer dissatisfaction, and inefficient processes. For example, a retail chain may be unable to accurately track inventory at individual stores, leading to overstocking of some locations and understocking of others, resulting in lost sales opportunities or empty shelves. Omnichannel potentially accelerates these impacts as well, with ineffective shipping locations, poor fill rates, and/or unnecessary inter-company transfers.
Fortunately, there are solutions available to help retailers address this challenge. To maximize ROI and ensure the most positive impact on operations, retailers should consider these potential approaches:
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RFID tags can accurately track goods across the store level, providing real-time visibility into inventory and allowing retailers to better manage their stock. RFID has advanced technologically and reduced costs sufficiently to warrant serious attention in certain retail verticals and unlock significant ROI and value.
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Improved integration between the supplier, retailer, and retailer’s internal systems can ensure that inventory data is accurately communicated in real-time and repair any existing defects that may be causing delays.
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Create a microservice or operational data store to provide a federated inventory position across the entire supply chain. This ensures inventory is accurately tracked and helps retailers maximize their efficiency.
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AI stock position monitoring can be used to provide more accurate forecasts of inventory needs, helping to ensure the right amount of inventory – product in the right place at the right time.
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Store inventory management systems can help retailers optimize their stock levels and ensure customer satisfaction. However, facing an outdated solution that does not support the business requirements or operational needs, or a lack of solution altogether, will delay store initiatives and those impacting omnichannel.
By tackling the above solutions, in no particular order, retailers can ensure that they are making the most of their resources and addressing the pressing needs first. Once the appropriate solutions are implemented, retailers should then move on to more complex solutions, such as AI-driven forecasting, to further maximize their efficiency and customer satisfaction. By leveraging these solutions, retailers can continue to provide the best possible customer service and maximize their profits.
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