The last 12 months of retail sales have been the most volatile of the modern era. Sales during the Great Recession look like a peaceful ocean-view compared to the spikes of COVID-19. It's no wonder that shortages remain while businesses struggle to anticipate consumer demand. Even today, 74% of companies report supply issues.
With online sales increasing, traditional allocation and forecasting methods are costing retailers millions. Inventory is not in the ideal location resulting in higher shipping costs, more markdowns, and fewer sales. Omnichannel allocation has already been shown to improve ship completes by 2x and inventory turns by greater than 250%. But how is omnichannel allocation different than traditional methods? We've highlighted 6 points of differentiation below: Customer Demand, Returns, Continuously Forecasting, Markdowns, Platform, and Experience.
Depleted revenue, compressed margins, short on capital, a slimmed-down workforce, plus an infrastructure not designed for an omnichannel volume consisting of 40-60% of total sales. Not an ideal predicament. Will business return to normal? No.
It’s a Vicious Cycle
Growing up, whenever my best friend was down, he'd warmingly joke, "It's a vicious cycle." Matt, my best friend, realized that one problem could quickly spiral out of control.
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