This week, we have a special edition of our weekly roundup that goes beyond the usual retail and wholesale stories, last mile logistics and final mile delivery. This time, we focus on inventory management, from visibility to shrinkage. We kick off with a look at OneRail’s latest study and the debut of the OmniPoint® Inventory Visibility platform, which aims to solve all issues related to vanishing inventory. We will also provide some context and substance with stories about managing inventory, item-level inventory visibility, and insights on how shrinkage and lost inventory can negatively impact a business like 99 Cents Only. We then close things out with insights about a new inventory management system hitting the auto industry.
So, without further ado, let’s jump in. We’re covering all the angles this week to keep your operations tight and your inventory in check. OneRail’s Latest Study and Solution to Keep Products in Sight and Shrinkage in Check
Staying informed is your best defense when it comes to keeping your inventory intact through the shipping process. According to OneRail’s recent study, “Shrinking Shrinkage: Solutions for Improving Inventory Visibility,” an alarming 67% of companies face issues with items missing in transit — what the industry calls shrinkage, or shrink. That’s why OneRail has stepped up with a new solution, the OmniPoint Inventory Visibility platform.
Understanding the Issue: How Shrinkage Hits Hard
Shrinkage isn’t just about missing goods — it hits your bottom line and shakes customer trust. OneRail’s study, based on insights from 300 logistics leaders, highlights a crucial link: 88% of these experts see a direct tie-in between real-time tracking and fewer customer complaints about missing items. Still, nearly half report that the real struggle is the absence of instant data when they need it most.
Tackling the Challenge: A Tech-Driven Approach
Recognizing these pain points, OneRail developed the OmniPoint Inventory Visibility platform to trace every item beyond pallets, from departure to delivery. This level of detail provides the clarity needed to prevent loss and guarantee products reach their destinations as planned. By integrating this technology with existing systems, OneRail offers a seamless way to maintain oversight, whether goods are moving across the street or across the country.
Keep a Sharp Eye on Your Inventory: Why It Matters More Than You Think
Managing inventory is also a shield against risk. In his recent article for The Loadstar, Josh Finch details the often-overlooked importance of tight inventory control and its role in defending an operation from unseen threats.
The Chaos of Clutter: How Mismanagement Magnifies Risks
Efficient inventory management goes deeper than knowing what’s in stock; it’s your frontline defense against theft and loss. Without clear systems, your warehouse becomes a confusing space where things go missing, creating not just inventory shrinkage but also security vulnerabilities. Finch further points out that the confusion often seen in poorly managed spaces significantly ups the ante for theft risks.
Synchronizing for Safety: The Power of Integrated Systems
Finch also stresses the importance of seamless communication between various management systems like WMS, OMS and TMS. Small slips can lead to significant losses when these systems don’t communicate correctly. That’s why keeping these platforms well-synced can prevent potential errors, keep track of every item and maintain a tight ship while minimizing the risk of inventory shrinkage and strengthening supply chain security.
How Knowing Every Item in Your Inventory Can Boost Your Business
Keeping a close eye on every single item might seem like overkill. However, it’s exactly what can set your business apart. Based on some of the latest research, here’s why diving deep into item-level inventory makes a world of difference.
Smart Shelves, Smarter Decisions
Forget about the old way of stocking up based on hunches. Today’s top businesses are all about precision. With real-time, item-level visibility, you know what’s selling and what’s sitting. You can adjust on the fly, keep your stock lean and avoid overordering. Think of anticipating a spike in demand for a hot product in one region while scaling back in another where it’s not moving. That’s the agility you need to keep customers happy and storage costs down, especially with U.S. business logistics costs jumping by 19.6% to $2.3 trillion or 9.1% of the GDP.
The Data Revolution: Paving the Way for Progress and Prosperity
Every item in your inventory has a story that shapes your business’ narrative. Tracking these details does more than just count stock — it dives into consumer habits, anticipates trends and aligns your inventory accordingly. At the same time, this sharp focus helps trim waste, lower costs and even fine-tune product launches. By pivoting from guesswork to precision, your customers get what they need right when they need it, without the burden of overstock or delays.
Walking a Tightrope: Harsh Inventory Lessons From 99 Cents Only Stores
The story of 99 Cents Only Stores provides a real-life crash course on the importance of sharp inventory management. Inventory issues contributed to the company’s struggles, and we can learn many valuable lessons from their shortcomings.
Managing Shrinkage: A Balancing Act
For 99 Cents Only Stores, inventory shrinkage, primarily from theft, was a significant factor in their financial struggles. In 2022 and 2023, these losses escalated, demonstrating how vital rigorous inventory oversight is. The crisis went far beyond missing items and bled into operations and profitability, to the point where the company faced operating losses of $30.8 million in 2022 and nearly $60 million in the first three quarters of 2023.
Strategic Decisions That Backfired
As financial pressures mounted at 99 Cents Only Stores, the company had no choice but to raise prices — an act of desperation that backfired. After passing on the costs to customers, the store experienced a significant backlash, resulting in fewer visits and greater losses. This begs the question: How might more proactive inventory management and shrinkage control have changed the narrative for 99 Cents Only Stores?
Exploring Lotlinx’s Vincensus: A Closer Look at Auto Inventory Trends
Let’s take one final look at how important effective inventory tracking is by focusing on the auto industry. Lotlinx’s new Vincensus product aims to provide valuable insights into inventory and pricing trends that matter to OEMs and retailers.
Real-Time Insights for Informed Decisions
Vincensus offers valuable insights and a clear snapshot of current inventory in the auto industry. For instance, a recent report shows that the new vehicle inventory is at an 80-day supply, with 48% considered aged. On the other hand, used vehicle inventory averages a 40-day supply, with 46% aged. These statistics reflect stock levels, reveal how quickly vehicles are moving and can help dealerships adjust their strategies effectively.
Understanding Pricing and Markdown Trends
Pricing strategies can make or break inventory turnover. According to Vincensus, 19% of new and 35% of used items sold at markdown prices last quarter. These stats are gold for dealers aiming to price smart — not just to clear out old stock, but to keep shelves fresh and moving. By keeping an eye on these trends, dealers can fine-tune their pricing to match what buyers are actually willing to pay, dodge the dreaded inventory pile-up and spark more sales.
Wrapping It Up: Keeping Your Inventory Tight with OneRail
That’s a wrap on this week’s special edition! We’ve zoomed in on everything from OneRail’s eye-opening study and solution to tricks of the trade to nail inventory management. Whether it’s avoiding the mistakes that tripped up 99 Cents Only Stores or syncing systems like a pro, OneRail has you covered far beyond last mile delivery. Here’s how:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint® Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
