Creating Inventory Profitability With Advanced Technology Strategies

Outdated, legacy approaches to inventory management and inadequate computing power have resulted in weak and unprofitable supply chains. Today, retailers can drive greater profits using machine learning to support predictive and prescriptive analytics. Reduced computing costs and artificial intelligence (AI) have put game-changing tools in retailers’ toolboxes.

Without a modern, prescriptive approach to inventory management, retailers will continue to face increasing losses year-over-year.

Out-of-stocks and overstocks cost retailers more than $1 trillion annually, including more than $252 billion in North America alone.

Viewing inventory as an investment is changing the game for retailers.

Retailers adopting a best practice approach in applying these advanced technologies to inventory management report significant net profit improvement, between 10% and 40%.

By implementing a Profit Optimized Inventory (POI) approach with technology adapted from financial technology (fintech), retailers can now leverage data to make profit-driven decisions about inventory as well as other aspects of the business.

4R’s profit optimized store inventory service has improved our ability to maintain inventory levels that satisfy customer needs better and more profitably.”

Chad Clayton,
Vice President Inventory
Management, Family Dollar

POI supports cross-channel inventory demand for The Vitamin Shoppe, helping to drive in-stocks from 90% to 96% while increasing inventory turns by 30%.

4R Systems helped us quantify the retun-on-investment…it was compelling. The system paid for itself many times over the first year out. No question, it beat the financial metrics and ROI targets.”

Eric Kang,
Vice President of
Supply Chain, Sur La Table

With machine learning and advanced analytics as the foundation of POI, retailers can see a net profit improvement of 10% to 40%; and an average improvement of 300 basis points.

To learn more about how to improve bottom-line revenue with a POI approach, download the report.

4R Systems is a leading provider of advanced inventory and supply chain services, which help retailers gain significantly increased profits by optimizing their omnichannel inventory and related supply chain decisions. Founded by supply chain experts from The Wharton School and Harvard Business School, 4R provides capabilities that profit optimize the matching of supply and demand. From initial launch through replenishment to end-of-life for products—ranging from shortlived fashion items to long term staples—4R provides retailers with services that fit their business.

info@4rsystems.com
610.644.1234

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