The Retail Inventory Dilemma: 7 Reasons Why Real-Time Visibility Is a Necessity 

In a recent Wall Street Journal article, the trend of “wealthy” individuals opting for full-body scans caught my attention. These scans, although expensive and often not covered by insurance, have divided the medical community. Some argue they are essential for early disease detection, while others feel they potentially lead to unnecessary costs and complications. This debate on early detection versus potential risks drew my mind to the retail industry and the ongoing discussion around in-store inventory visibility.

The retail inventory debate

In the world of retail, the what’s-necessary-vs.-too-much debate comprises whether retailers should stick with traditional mobile RFID handhelds for inventory management or invest in a more robust, fixed system in the ceiling. Currently, many retailers rely on periodic (monthly/weekly/daily) cycle counts for what we call “moment-in-time” visibility. While mobile RFID solutions claim to provide approximately 95% inventory accuracy at a reasonable cost, the need for real-time visibility (and >99% accuracy) is becoming more evident with each passing day. Store inventory accuracy is the key to a better experience, whether through a customer’s ability to walk in and immediately pick up a desired item or access faster ecommerce deliveries and pickups.

Here’s why real-time inventory visibility is crucial for retailers:

1. Effective inventory management: Live inventory tracking is the only way that store associates can help walk-in customers find articles within minutes (or even seconds).
    
2. On-shelf availability: Empty shelves = lost sales. In fact “out of shelf” items cost U.S. retailers approximately $1.4 billion every week. Real-time data helps identify items that need immediate replenishment from the backroom, ensuring products are always available to customers.
   
   
3. POG excellence: A real-time store solution validates that your store planograms are in compliance, helping maintain a consistent shopping experience for customers.
   
   
4. Omnichannel: With real-time visibility, you can confidently promise available inventory for ship-from-store and Buy Online, Pickup In-Store (BOPIS) orders, improving customer satisfaction. Plus, when store associates don’t need to search for articles, there are fewer order rejections and split shipments, ultimately reducing fulfillment costs.
   
   
5. Shrink visibility: Retail theft is on the rise. Real-time systems can alert replenishment teams immediately when items are being stolen, minimizing losses.
   
   
6. Labor savings: Precise item location identification within a few feet allows store staff to focus more on customer needs, enhancing the overall shopping experience.
   
   
7. Connected fitting rooms: Real-time data facilitates interaction between customers and associates, potentially increasing conversion rates.
   

RELATED READ: The Customer Comes Second: Building a Foundation of Intelligent Inventory Management

Eliminating the risk of moment-in-time inventory visibility

As retailers increasingly rely on their physical stores to fulfill ecommerce orders, issues such as order cancellations, split shipments and pick declines have become more common. Just as the medical community is beginning to accept full-body scans for high-risk patients, retailers should address the risks related to moment-in-time visibility and seriously consider the transition to real-time inventory visibility. 

In a world where customers expect immediate access to products and seamless shopping experiences, retailers cannot afford to rely solely on periodic inventory counts. Real-time inventory visibility isn’t just a luxury; it’s a necessity to meet customer expectations, reduce costs and stay competitive in the ever-evolving retail landscape.