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Guidance and results for the data-rich, yet information-poor.

Predictive Analysis Helps Retailers Tackle Inventory Problems

OverstockedStocking store shelves was, in the past, a matter of guesswork. And guesswork is never that accurate–overstocking and under-stocking merchandise have always been problems for retailers.

Yan Krupnik, the Business Development Manager at Relaton, stated in a recent article in The Predictive Analytics Times that the solution is here, however. The solution uses predictive analytics to solve inventory problems through a process called Inter-Store Inventory Balancing, a system which makes proactive changes to a retailer’s inventory before problems can arise.

With the Inter-Store Balancing Solution, the system proactively analyzes all the influencing factors of a retail supply chain, and recommends the optimal inter-store transfer schedule to move slow-selling products to stores where there is a high demand for them.

…This means that the retailer avoids unnecessary markdowns, and has the capability to sell the inventory at full price.

It’s worth going over to visit the article for the very nice graphic representation that they’ve put together of this process, using just two stores. (Most retailers, of course, contend with hundreds if not thousands of stores, but the concepts remain the same).

The article went on to report on some very impressive results. Retailers who use this form of predictive analysis cut inventory costs by 25-40%, and increase sales by as much as 20%. That’s a bottom-line impact that the struggling retail industry could surely use.

If you’d like to see similar results in your own business you will need the training which helps you gather actionable intelligence from your company’s data set. TMA’s free webinar and predictive analytics training courses will give you and your team the skills you need to do just that.

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