A new challenge is hitting retailers after stockouts and bottlenecks occurred last year. To stay ahead of stockouts, many retailers source to prevent shortages by gathering more products, yet in doing so, storefronts now face a new problem: overstocking. Retailers who understandably grabbed as much inventory as possible are now stuck with a mountain of items they can’t shift, augmenting storage costs. Studies show that stores are overstocked by more than 30% and there’s no place to put everything. The cause of this could be people shifting from a stay-at-home lifestyle to a more public one. Since there is no place to put an overstocked inventory, ROI and cash flow productivity is slowed. Six out of ten retailers have increased prices to cover losses, while nearly a third choose to take the cost hit to keep expenses stable. These increased prices can hurt the revenue and long-term viability of store operations.

Empower smarter stock management with experienced solutions.

With increased prices and the threat of long-term operational damages, retailers are trying to find solutions that smartly manage stock. The ability to manage an overstocked inventory can help bring more revenue and enhanced efficiency to stores. Enhance inventory management and dependable store operations by…

  1. Maximizing visibility – To manage and gain control of your inventory when it’s overstocked, you need to know what’s going on. Inventory visibility empowers retailers with knowledgeable insights they can use to make informed decisions on items. More informed workers with the right insights help manage overstocks because they know when and where items should be stored. Inventory visibility is possible with Zebra’s RFID tracking solutions that empower associates with faster and more dependable data capture.
  2. Communicating with associates – Dependable connections across your store can ensure that workers effectively respond to overstocks and each other easier. Quick adaptation to challenges like overstocking can help prevent uncontrolled inventory levels and drained expenses. Empower retail associates with access to free-flowing information for critical management when items are stored. A unified storefront stays fluid during overstocks and low demands, which is critical for maintaining consistent efficiency.
  3. Gaining inventory control – Maximized visibility and streamlined communication helps associates gain control over their store and inventory. High visibility and communication help your workers know exactly where items are and when they need them. Consequently, it’s no surprise that automated data capture and sharing systems have risen to popularity within retailers as businesses seek to deliver real-time stock counts in every corner of the store.

Overstocking leads to damaged costs and uncontrolled store operations. Contact us today to see how you can start creating a more scalable store.