The movement of goods is the ultimate goal for any retailer. But what happens when a retailer is unable to move goods into the consumers’ hands because of out-of-stock issues?
According to Jacqueline Renfrow at fierceretail.com, over 75% of adults found a wanted product to be out-of-stock during store visits over the last 12 months. In the same period of time, 63% of online shoppers experienced the same out-of-stock error messages. Retailers lost 58% of these sales and 65% of the online sales.
New research from IHL Group attributed a $634.1 billion loss due to out-of-stocks. Greg Buzek, IHL Group President said, “Retailers can realize huge gains by addressing opportunities that are in hand and slipping through their enterprise fingers.”
Many factors can lead to embarrassing and costly out-of-stock scenarios for retailers, such as:
- Underestimating the demand for a product
- Miscalculating the time needed for the supplier to deliver the product
- Late delivery by a supplier
- Product quality issues
- Shortage of working capital
Those who have been in business long enough know that some situations cannot be controlled. But what can be controlled, should be controlled. Inventory visibility is something retailers can control with confidence.
“The ability to sense and respond to demand through greater inventory visibility and intelligence is critical for retailers,” explains Bryan Nella, director of corporate communication at GT Nexus.
It is time to take control with ControlSpan, CONTROLTEK’s inventory visibility system (IVS). ControlSpan is true inventory visibility made easy. ControlSpan is a modular solution built to allow freedom of choice at the beginning of an RFID deployment, to grow with the demands of the organization, and provide options at all levels instead of being locked into a single, siloed offering.
The Proctor & Gamble Company sponsored a study, A Comprehensive Guide to Retail Out-of-Stock Reduction in the Fast-Moving Consumer Goods Industry, which discovered RFID showed great promise to solving the out-of-stock epidemic. The report states that “new retail support technologies, such as RFID, have changed our thinking about OOS as a single problem, to separating OOS examination to ‘not in the store’ and ‘not on the shelf’, which is key to truly understanding the out-of-stock epidemic.
Eric Green, CEO and Co-Founder at Askuity, attributes out-of-stocks due to poor data-syncing, accuracy failure of Perpetual Inventory (PI) systems, and distorted demand forecasting…flaws ControlSpan can resolve.
Bill Hardgrave, Dean of Auburn University’s Harbert School of Business and an expert on RFID adoption in retail, said the technology’s reliability and economic benefit have been well-established. Hardgrave adds, “RFID enables retailers to know what they have, and where they have it.”
Request a demo today and see how CONTROLTEK’s ControlSpan suite offers end-to-end inventory and process management solutions that allows not only improved visibility but also enhanced profitability and customized integration. CONTROLTEK’s solutions help make existing systems more efficient and accurate.
As any retailer would agree, inventory visibility is the cornerstone to meeting product demands and protecting the trust consumers place in the company brand.