Inventory Record Accuracy Research - Four Years On....
Aris Syntetos, Cardiff Business SchoolClick to register
Date and Time
December 8th - 3pm UK time
8 Dec 3:00 PM
Inventory records are wrong! We know this because we can see it every day in stores, and when we look at often the #1 reason why a shelf is empty. We can also read about inventory record accuracy in the ECR research study (click here) that quantified the problem of inaccuracy, in this research, 60% were found to be wrong. However, what this research did for the first time, was to prove the impact of correcting those records on sales, with their unique test Vs control store design, proving that a 4-8% sales lift was possible when inventory records went from “wrong” to “right”! As was expected, the items where the inventory records were negative (less physically available than the records suggested) showed the greatest sales lift, with on average a 10% lift. However, and intriguingly, those items with positive variances also showed an uplift of 8%, suggesting an opportunity in how the backroom is organised in a way that makes it easier and faster to find the products.
In this working group session, we will explore as a group how retailers in the group have used this report to change internal mindsets, or perhaps they have repeated the experiment to get their own data, or used the report to support the business case for more counting and/or defend the counting budget from cuts.
This working group is for retailers, CPG’s and academics only. Click here to register.
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