Retail Insight, the leading provider of store operations execution software, today announced the launch of its latest solution, InventoryInsight, a machine learning-driven software that automatically identifies and corrects inaccurate retailer inventory records to reduce phantom inventory and drive store performance.
One of the main drivers of inefficiencies, lost sales and falling margins, phantom inventory is the discrepancy between stock listed on retailers’ systems and what inventory is actually available. Facing already razor-thin margins, phantom inventory presents a significant and costly challenge to grocers and, if left unchecked, becomes an invasive profit-draining issue across every part of their store operations, from labor and on shelf availability (OSA) to shrink.
With average inventory records currently only 60% accurate, phantom inventory blocks replenishment and timely re-orders, causing gaps on shelf that lead to lost sales while impacting customer loyalty. It also drives up operational inefficiencies and labor costs due to time spent on trying to correct it through manual, undirected stock counts and audits. And yet, original research in Retail Insight’s Shelf Actualization Index of 75 senior U.S. grocers shows that despite the issues caused by phantom inventory, over a third (37%) of U.S. retailers have no capabilities in place to ensure accurate stock records across their store estates.
InventoryInsight puts retailers back control by reducing inaccuracies in stock records that cause phantom inventory using cognitive technology – a best-of-breed blend of machine learning (ML) and advanced human-led analytics. Cognitive technology removes the gap between data and execution, combining ML automation with instinct-led human expertise to deliver pragmatic and impactful decision-making and actions that drive up ROI and improve performance.
By creating and training a data model for each store, InventoryInsight uses ML to understand where the issues are. It then either automatically detects, alerts, and corrects instances of phantom inventory in real-time autonomously, or prompts store staff to take action to address and amend inventory records. This not only boosts labor productivity, but also helps retailers recover sales that would otherwise have been lost.
Paul Boyle, CEO of Retail Insight, commented: “With recent analysis suggesting that phantom inventory can cause as much as 80% of out-of-stocks – a major driver of lost sales – retailers can ill-afford to leave stock inaccuracies unchecked. By leveraging ‘live’ data, retailers can address and correct inventory accuracy faster and more efficiently, ensuring better product availability and, ultimately, sales and margin.”
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