Donald Frieson

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…

Customers blame retailers less when the delay notification comes from someone else   When something goes wrong, most companies reach for the same playbook: communicate early, communicate often, and keep customers informed. It is difficult to argue with that logic. Customers hate surprises, and transparency has become a cornerstone of good service. Whether the issue is a delayed shipment, a production disruption, or a missed commitment, managers generally assume that more communication demonstrates accountability and builds trust. New research published in the Journal of Business Logistics suggests the real lesson is narrower and more useful than “communicate more.” The study shows that communication does more than transfer information. It also shapes how customers assign responsibility. The volume of communication was not what mattered. The identity of the messenger was. Researchers presented consumers with identical delivery delays following an online purchase. In the study, the same standard emails were sent to every participant: an order confirmation, a shipment notice, and a delivery confirmation. What varied was only how customers learned about the delay itself. Some received a delay notification from the retailer, some from the carrier, and others discovered the delay on their own through package tracking. The delivery outcome was…