When Global retail industry profitability falls under 3% in average
, inventory management efficiency becomes the difference between profit and huge loss. Recent research has it that an average retailer is losing 1.75% of its profitability due to inventory shrinkage (shoplifters, employee’s theft & other administrative inefficiencies), additional 3.2% profitability points are lost due to overstock issues, and finally Out-of-Stock on store shelves creates additional 4.10% loss of revenues. IHL call it “Retail’s $1.1 Trillion Inventory Distortion Problem”, and retail industry is entirely focused in decreasing these losses to stay profitable.
While there are several inventory management solutions, there is only one reliable and cost-effective technology that can provide you with an accurate information about on-shelf inventory status in real time: Product Aware Technology. Product Aware Shelf and Product Aware Bay are the irreplaceable add-ons for any loss cutting inventory management platform, providing the missing puzzle part of on-shelf inventory status at any given moment.