Better inventory analysis could help retailers to save on the costs associated with holding too much or too little stock, say researchers at Cardiff Business School.
Academics from the school are working with their counterparts from the Technical University of Darmstadt and the Brussels-based trade association Efficient Consumer Response to identify the impact of more precise stock-taking on retail sales.
The six-month project has a budget of €60,000 and is led by Professor Aris Syntetos, chair in operational research and operations management at Cardiff Business School’s Logistics and Operations Management section.
He said: “Wrong inventory records can lead to the shelf not being replenished on time or far too much inventory being sent to the store. The first aspect would lead to a loss in sales, while the second one would be associated with unnecessarily high inventory carrying cost.”
The research involves studying a number of large retailers, with more precise stock checks carried out at half of those to see if an overall increase in sales can be achieved.
Optimal inventory analysis
3T Logistics can offer optimal inventory analysis through detailed centre of gravity modelling – which identifies where demand is localised in your supply chain and selects the most appropriate warehouse locations accordingly.
This can help you to deliver goods on time when stock levels run low, meaning that even in ‘just in time’ retail models, you have the best chance to make a sale without the item being out of stock.
To find out more about centre of gravity modelling for supply chains and how 3T Logistics can optimise your inventory and stock checking processes, contact us today on 0116 2824 111.