Dr. Mahmoud Barraj

Inventory audits may be one of retail’s most overlooked revenue opportunities. Every large retailer has invested in software that predicts demand, triggers replenishment, and manages shelf space with precision. Almost none of that software questions whether the inventory number it’s reading is actually correct. A recent study in the Journal of Business Logistics suggests that blind spot is expensive, and that fixing it is one of the more overlooked levers a retailer has for growing sales. The researchers, working with a major UK grocery chain, examined roughly 24,000 products across 11 stores to understand why inventory records drift from what’s physically on the shelf, a problem known in the industry as inventory record inaccuracy. They then ran a field experiment to measure what happens to sales when a store corrects those records through a full audit. The results reframe a task most retailers treat as a nuisance into something closer to a growth strategy. Start with why the records go wrong in the first place. The study found that products carrying more inventory and products replenished more often were significantly more prone to inaccuracy. That makes intuitive sense: every case broken down, every unit moved from backroom to shelf, is…

The top supply chain trends in Africa right now include ecommerce, sustainability, technology and skills development. The e-commerce boom that was fuelled by Covid-19 is showing no signs of slowing. It is predicted that in 2025, e-commerce transactions in South Africa will grow 150% to R225 billion. While African consumers are clearly sold on the speed and convenience of online shopping, they are also increasingly recognising that there is an environmental price to be paid, and they are demanding greener e-commerce supply chains. African businesses also recognise that to compete on the global stage, and for Africa to rise as the supply chain powerhouse that many predict it can be, they must align with global environmental standards. Integrating sustainability into supply chain and logistics is therefore a growing imperative in Africa. African companies are investing in technologies like electric vehicles, renewable energy sources and advanced data analytics to measure, manage and minimise their environmental impact. They are optimising transportation routes to have fewer vehicles on the road and to cut CO2 emissions. They are adopting circular supply chain models, to get more use out of products and move beyond the traditional “take-make-waste” approach. Takealot, which is South Africa’s largest online…