Wouldn’t it be great to have the ability to reduce lost sales and avoid stockouts by mitigating constant fluctuations of supply and demand?
In 2021 U.S retailers faced $82 Billion in lost sales due to empty shelves and “out-of-stock” items.
On top of that, empty shelves erode consumer loyalty. In many cases, customers are forced to switch to the more reliable competitor, leading to an overall loss in market share, but it doesn’t stop there.
Retailers can be caught off guard by changes in demand forcing them to scramble for last-minute inventory replenishment which can have a negative effect on supplier relations.
Thankfully, there is a solution – safety stock.
So what is safety stock and how can it be implemented and optimized to increase sales and maximize GMROI?
Continue reading to find out.