Paola Nunez

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…

In their inaugrual awards, and in association with IBM, Supply Chain Digital has recognized the exceptional women around the globe driving innovation and working on the leading edge of supply chain. Our very own CMO, Amanda Luton was featured in their Top 100 Women of Supply Chain, and in esteemed company with executives from Johnson & Johnson, Dollar General, Unilever, Amazon, and so many more. View the entire Top 100 List here.