Retailers: Lower inventory didn’t affect sales
Retailers polled on their supply chain activities during the 2009 peak season said low inventory levels last year did not negatively impact sales volume, according to a survey by Tompkins Supply Chain Consortium.
Those polled said strategies most commonly used during the last peak season were:
' Reduced inventory levels.
' Increased emphasis on forecasting.
' Improved planning processes and tools.
' Increased reporting and information.
'The survey also shows that reducing inventories did not negatively impact sales volume,' Tomkins said in a statement. 'Inventory levels remained high enough to decrease the chance of stock-outs. Nearly one-third of those surveyed did not see any lost sales due to reduced inventory, and two-thirds lost less than 5 percent of sales due to inventory reductions. Ten percent had improved sales numbers.'
Those companies surveyed said for the 2010 peak season, they plan to optimize inventory levels and placement and improve forecasting methods.