Guest contributor |
Inventory management remains a critical challenge in today’s fast-paced retail environment, significantly impacting store associates and customer satisfaction. According to Zebra’s Global Shopper Study, 80 per cent of store associates report that maintaining real-time visibility of out-of-stock items is a significant hurdle.
Several factors contribute to the inventory management issues retailers experience. These include viral trends where products gain sudden popularity online and can quickly become out of stock; localised events like sports or weather changes can create spikes in demand for specific products; and seasonal and educational calendars that drive demand for particular items at certain times of the year, which require precise forecasting.
Effective inventory management is the backbone of successful retail operations. Traditionally, inventory management relies on core transactional systems such as enterprise resource planning, replenishment and allocation systems. However, these can often fall short in adapting to dynamic market conditions and external factors like the examples outlined above. Relying on transaction data limits the amount of information available to these systems for forecasting and optimisation. The phrase ‘garbage in, garbage out’ aptly describes the limitations of these systems. Inaccurate or incomplete data can lead to poor inventory management.
If internal and external demand drivers are not integrated into inventory management systems, retailers may find themselves unable to meet changing consumer behaviour and needs, leading to empty shelves and dissatisfied customers.
Strategies for stock control and efficiency
To tackle these challenges, retailers are increasingly turning to advanced technologies. At Zebra, our Workcloud portfolio offers a suite of solutions designed to enhance inventory visibility and management. Key components include inventory visibility with real-time data on stock levels, advanced tools for inventory planning, and artificial intelligence for predicting demand and translating it into precise inventory requirements.
By augmenting existing planning systems with these advanced tools, retailers can avoid the need for complete system overhauls. This approach allows for quick implementation and improved return on investment from existing technologies.
One example of Zebra Technologies’ solution in action is Walgreens, a US-based pharmacy and retail chain, that implemented the solution to combat the challenge of maintaining accurate, real-time inventory data. This helped to prevent stockouts, overstock situations, labour productivity issues and reduced efficiency in daily operations.
Workcloud Actionable Intelligence – which integrates advanced technologies such as AI and machine learning to provide real-time insights and actionable data – has helped Walgreens to achieve accurate stock levels, allocate tasks more efficiently with real-time adjustments and make data-driven decisions.
Another technology we are seeing retailers utilise is radio frequency identification technology (RFID). This technology is a game-changer for inventory management and maintaining accurate inventory records, helping with tracking inventory movement, preventing loss or damage, and providing real-time data.
Advanced analytics further enhance these capabilities, enabling retailers to forecast inventory needs down to the stock level for each store, making supply chains more agile and resilient.
Working with partners for a broader impact
Zebra collaborates with a vast network of over 10,000 partners worldwide, including system integrators, independent software vendors and industry consultants. The partnerships ensure that solutions are not only deployed effectively but also enable retailers to transform their businesses both within and outside of their stores. Zebra and Microsoft have joined forces to enhance customer experiences by making Zebra’s innovative software solutions readily available on the Azure Marketplace, providing seamless access to enterprise tools.
Effective inventory management is essential for retail success, impacting both store associates and customer satisfaction. By leveraging advanced technologies such as AI, machine learning and RFID, and working closely with a network of partners, Zebra provides comprehensive solutions that address the complexities of modern retail inventory management. These innovations enable retailers to maintain real-time visibility, improve forecasting and optimise inventory placement, ensuring that the right products are available at the right time for consumers.
Find Zebra’s suite of Workcloud solutions on the Azure marketplace
Parth Thakker is senior director of corporate strategy for software at Zebra Technologies
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