In an Amazon Prime world, omni-channel retailers are challenged to manage multiple sources of demand when customers expect everything in stock all the time, whether they are in the store at 1 p.m. or online at 1 a.m. To beat the real-time “last mile” supply chain challenge, retailers must be able to compete with Amazon by leveraging their stores and distribution centers as one unified distribution center to achieve massive margin gains.
In the latest issue of Inside Outdoor Magazine, John Andrews, CEO of Celect, shared how retailers have a huge opportunity to derive more revenue from their inventory decisions and beat Amazon at its own supply chain game.
Today’s consumer has more ways to buy, receive and return goods than ever before – which has placed enormous strains on inventories and demand forecasting. Retailers continue to lose billions of dollars annually due to inventory management decisions. In North America alone, the opportunities missed are outrageous:
- $123 billion loss in annual revenue from overstocks
- $129 billion loss in annual revenue from out-of-stocks
- $238 billion sales lost due to product unavailability
As such, the industry must seek out new ways to transform the way inventory decisions are made because it’s clear that something needs to change.
In the article, John shares how Celect is helping retailers overcome the core inventory challenges businesses face today through its patented, artificial intelligence and machine learning (AI/ML) optimization and demand prediction platform:
“When you can predict demand and optimize your inventory – not just on one particular order but on all potential orders – you can reduce split shipments, stockouts, markdowns and shipping costs all at the same time. It can have a fairly significant impact on revenue and margin.” – John Andrews, CEO of Celect
Read the full article from Inside Outdoor Magazine to learn more how retailers use Celect to gain an accurate view of demand across stores and exceed customer expectations.