Inventory Management Solution for a Retail Firm
Today, retail companies are under the pressure to effectively manage their stock, maintain an adequate level of inventory for the right products at each retail location, and minimize conditions of overstocks and stock-outs. However, retailers can overcome these challenges by leveraging retail inventory management solutions. Retail inventory management solution can help businesses to maintain an optimal level of inventory while dealing with fluctuating market demands.
The client is a retail firm based out of Central Europe. With the ongoing market changes, the company faced challenges in keeping the right amount of stock in- hand and planning for seasonal changes. In an attempt to meet the seasonal demand, the client purchased products in bulk. However, this resulted in product overstock, thereby increasing inventory holding cost for the company. Consequently, the company witnessed a huge dip in their profit margins.
The client, therefore, approached the experts at Infiniti Research to leverage their expertise in offering retail inventory management solution.
With Infiniti’s retail inventory management solution, the client also wanted to:
Enhance the accuracy of inventory orders – With Infiniti’s retail inventory management solution, the client wanted to accurately evaluate the amount of inventory on-hand to be kept. By doing so, they wanted to prevent product shortages and reduce storage cost.
Enhance retail warehouse management – By identifying the top-selling products, the client wanted to optimize their warehouse setup by placing those products together and in easily accessible places. With this, they wanted to speed up the packing and shipping processes.
Enhance inventory tracking – As the client had to deal with multiple locations, they wanted to develop a retail inventory management framework to coordinate supplies at each location.
To cater to the requirements of the client, the experts at Infiniti Research conducted a market intelligence study. This phase of the retail inventory management solution helped the client to gain detailed insights into the market landscape and forecast demand-supply shifts.
The experts also conducted a demand management study to help the client deal with issues relating to analyzing and estimating customers’ demands.
The inventory forecasting engagement conducted as a part of the retail inventory management solution helped the client to accurately forecast the product demand by taking into consideration the historical sales data of the company.
The last phase of the retail inventory planning involved conducting a competitive intelligence study. This phase of the retail inventory management solution helped the client to analyze their competitors’ supply chain management processes. Also, the client was able to understand the initiatives undertaken by their competitors to manage supply chain challenges. Furthermore, by analyzing the past sales data of the client’s key competitors, the experts helped the client to identify best-selling products in the European retail market.
The insights obtained from Infiniti’s retail inventory management solution helped the client to accurately plan their inventory activities and develop a retail inventory management framework to enhance inventory tracking. Furthermore, warehouse optimization helped the client to speed-up the packing and shipping process, thereby enhancing the customer experience. Also, the client was able to plan for seasonal and unexpected market changes. As a result, the client was able to enhance their sales rate by 33% and CX by 2X.
Inventory Management Challenges