How to Be an Inventory Planning ‘Leader’ Company
Leader companies, by contrast, don't have this problem because they're able to reduce the total amount of inventory in their warehouse while still fulfilling nearly 100 percent of their potential sales.
All isn't lost for followers, however. Per the example above, we see that many online retailers actually have an opportunity to grow their sales by that same 10 percent to 30 percent with no additional marketing expense. How? Through better inventory planning, which will greatly enhance both efficiency (in terms of the total inventory on hand) and accuracy (by having the right inventory available to support sales).
To use the Aberdeen Group's words, this explains why leader companies embrace supply chain technology for positive growth. Where does your company stand?
Joe is Vice President of Product Solutions at Software Paradigms International (SPI), an award-winning provider of technology solutions, including merchandise planning applications, mobile applications, eCommerce development and hosting and integration services, to retailers for more than 20 years.
Joe is a 34-year veteran of the retail industry with hands-on experience in marketing, merchandising, inventory management and business development at multichannel retail companies including Lands’ End, LifeSketch.com, Nordstrom.com and Duluth Trading Company. At SPI, Joe uses his experience to help customers and prospects understand how to improve sales and profits through applying industry best practices in merchandise planning and inventory management systems and processes.