In today’s fast paced retail environment, real-time inventory management is commonly reported as one of the biggest headaches for retailers. There is a myriad of reasons why a stockout may occur. For example, retailers may underestimate customer demand for a particular item, their employees may lack sufficient training on the subject, or it may simply be the case that a supplier has let them down.
So what can be done to prevent stockouts? Fortunately, there are many solutions to stockout troubles. One effective way to combat OOS is to put inventory controls in place; a good rule of thumb is to always eliminate stock issues for the 20 percent of items that account for 80 percent of total sales. Another good idea is to dedicate a good amount of time to demand planning and sales forecasting or to implement an inventory management system.
Check out our infographic below to learn more about how you can prevent the out of stock problem to boost profits and satisfy customers.