Innovative Retail Inventory Management Solutions Helping Retailers Reduce Costs And Increase Efficiency

YRC shares four retail stock management strategies to cut costs and boost efficiency.

In this communiqué, retail and eCommerce consulting firm YRC highlights four retail stock management best practices and strategies aimed at helping retailers reduce costs and increase the efficiency of their inventory management.

Use of AI for Demand Forecasting
The use of AI in retail inventory management is increasingly gaining prominence. AI-powered demand forecasting tools allow the processing of massive volumes of data and derive insights that humanly or with the capabilities of existing applications are nearly impossible to think of. Furthermore, the ability of AI to learn makes it even more useful to improvise with business dynamics. With AI embedded in retail inventory management software applications, businesses have access to better insights and analytics which are essential for improved decision-making that has positive ramifications on costs and efficiency.

Inventory Optimization for Retailers
An essential aspect of efficient 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝗿𝗲𝘁𝗮𝗶𝗹 is stock optimisation. In inventory management, optimisation is carried out to maintain stock at levels which results in keeping costs minimised. Costs in inventory management like purchase, holding, and carrying costs can easily go beyond what otherwise could be kept lower. Without optimisation measures, situations of excess stocking or understocking may arise.

Use of RFID Technology
Among retail stock control solutions, the use of RFID is considered one of the best in today’s technological landscape. Although RFID has been in existence for a long its usage has increased in recent times. One reason for this is improvement in other technologies with which RFID could be used. The key utility of RFID in inventory management is tracking. 𝗥𝗲𝘁𝗮𝗶𝗹 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝘁𝗿𝗮𝗰𝗸𝗶𝗻𝗴 𝘁𝗼𝗼𝗹𝘀 integrated with RFID help in real-time monitoring and operations like counting, measuring, checking out, etc.

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Vendor-Managed Inventory
In a vendor-managed inventory arrangement, retailers hand over the activities related to inventory management to their vendors. It is like outsourcing the inventory management function. Retailers share sales and other relevant data using which vendors make decisions on inventory procurement and replenishment. It reduces the burden on retailers and also lends more efficiency to inventory management. Since VMI models rely on timely and accurate information-sharing, ICT plays a big role in their success. VMI is a powerful strategy for preventing stockouts in retail or for that matter, also preventing excess stocking.