Diego Pantoja-Navajas

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…

Special Guest Blog Post written by Deborah Dull   Imagine it’s launch season in your supply chain, and a team of AI agents is hard at work: coordinating shipments with suppliers, allocating inventory, and handling a missed delivery. It’s hard to go a day without hearing about the latest AI headlines: new LLMs, new applications, new use cases. These discussions are part of my every day. Business leaders and IT teams are eager to explore – and they have a lot of questions… and apprehension. In these discussions, we have found one framework that lands consistently: consider AI agents like new hires, not new software.   Step 1: Hire Like You Mean It Just like hiring humans, this step is about defining what you need. The first decision is the purpose of the role: what problems are you trying to solve? Where are your people overwhelmed? Where is your business growing in coming months? From here, the next decision is to build the business case just like you would for a new headcount. For example, consider the ROI of having a digital employee who can process supplier performance data 24/7. Now, decide on the type of agent that will join…