Out-of-stocks & overstocks
All About Stock — Optimizing inventory levels, minimizing out-of-stocks and preventing overstocking are persistent challenges for retailers. The IHL Group’s 2011 Market Study on Inventory Distortion indicates inventory distortion costs retailers “$800 billion a year when we consider the lost sales and the value of the discounts taken.” Imprecise forecasting, inaccuracies in the supply chain, ineffective replenishment processes, and unidentified theft events all contribute to stock distortion. Ultimately, these misappropriations lead to missed sales and customer dissatisfaction. The best defense against these problems is implementing intelligence measures that help increase visibility and manage stock efficiently.