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Shoppers expect to find stores plentifully stocked with everything they want to buy, but many of them like to check the availability of hand sanitizer or rice, for example, before they make the journey. Competent, disciplined inventory management can make the difference between a lost sale and a lifelong customer. Yet despite advances in technology such as embedding machine learning and AI in forecasting and replenishment, out-of-stock and overstock situations persistently frustrate shoppers and erode retail profitability. As recently as 2018, the Food Marketing Institute estimated that in the USA, grocery out-of-stock situations run at 8%, rising to more than 10% for promoted items. With online orders in grocery increasing due to COVID-19, out-of-stock items add friction to the shopping experience by increasing the possibility of poor substitutions and preventing the fulfillment speed that customers expect.
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Target audience level: beginner
Vendors mentioned: Microsoft, Oracle, SAP, and Zebra.
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