Solving the Out-of-Stock Crisis in Retail
We supported a Fortune 100 retailer who faced a significant challenge with out-of-stock products negatively impacting sales and customer satisfaction. In partnership with other teams, we were tasked with uncovering the root cause and designing a solution. By analyzing real-time sales data for each product across comparable stores, deviations in sales patterns were identified and an alert system was implemented to notify stockers to take immediate action. Integrating with their inventory management and supply chain systems, we provided actionable guidance for associates to restock items efficiently. In its first year, this innovative approach generated $1.8 billion in incremental sales, repurposed 14% of stocking labor, and enabled them to reallocate resources to fulfill digital orders more effectively.
The success of this system led to its adoption by multiple retail brands within their portfolio, setting a new standard for inventory management and operational efficiency across the industry.