Taking Stock A LOOK AT THE INVENTORY MANAGEMENT PRACTICES AND TOOLS RETAILERS ARE EMPLOYING TO WIN IN THE NEW NORMAL.
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etail has always been about delivering the right goods to the right place at the right time. But the challenge of doing so is exponentially more difficult—a fact illustrated by the number of overstocks and out-of-stocks weighing down margins each quarter. It’s a dilemma the industry has faced for years, and it all came to a head with the Covid-19 outbreak. Suddenly stores were closed, consumer demand evaporated and a season’s worth of goods sat untouched. Now as shoppers return and a new normal rises on the horizon, merchants need to apply the lessons learned to the latest tech platforms to establish healthier inventory strategies—for the P&L and the planet. Whether it’s children’s wear, footwear, accessories or apparel, the inventory conundrum persists as retail executives re-assess their practices. In “SKU SOS,” experts share how they’re enhancing visibility into their suppli-
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ers, integrating systems to create one view of stock and employing a data-led approach to design and merchandising. These insights paired with the tips from the retail consultants in “5 Steps to Optimal Merchandise Management” provide the building blocks for sound inventory management. In addition to these measures, fashion executives are starting to realize the solution may require remapping the supply chain for part, if not all, of their product offerings. The long-lead nature of overseas production stands in direct opposition with the buy-now, wear-now immediacy of the e-commerce age. Rather than taking bets on what will be trending 18 to 24 months in advance, retailers are turning to nearshoring as an option to help them create goods closer to need. In “Moving Local-for-Local to the Top of the Agenda,” experts share how retailers can reduce the number of obsolete goods at the end of the season.
The pandemic pushed many retailers to adopt alternative fulfillment methods like buy online, pick up in store, which proved to be a lifeline when consumers were wary of in-store shopping. Now an established practice, stores are learning how to refine their processes to ensure goods will be there when customers show up. It’s a new piece of the inventory puzzle that demands even greater accuracy and agility. “Refining BOPIS and Curbside for the Long Haul” outlines the particular challenges these options present and how retailers can address them. “Preparing for the Next Disruption” takes a look at the lessons retail has learned over the last year and the tools it will need as we all move forward, keeping in mind that the pandemic may have been a black swan, but the potential for disruption is ever present. Caletha Crawford Publisher Sourcing Journal
