The Importance of Inventory Accuracy After COVID-19
Once the COVID-19 pandemic subsides and doors reopen, apparel and footwear retailers say their main concern is inventory accuracy—even over improving online order fulfillment and managing returns, according to a survey by SML RFID, an enterprise software solutions provider.
Retailers have more inventory than ever throughout their supply chains, and with staff being furloughed and stores shut down, they have little confidence in their inventory levels for each SKU, says SML RFID. On top of that, consumers have put off buying apparel and footwear amid this cloud of uncertainty. As a result, retailers may have an additional 1 billion items of excess inventory until consumer spending stabilizes.
When stores, warehouses, and distribution centers reopen, retailers will need to mark down millions of items and move entire missed seasons of units into storage to make way for new products within their stores, and then push them to their e-commerce channels, says SML RFID. To do so requires a baseline inventory position.