Out-of-stock lowers customer loyalty. Your customers can switch brands or find other channels to buy from. Repeated out-of-stock cases also damage your reputation, decreasing traffic to your store and website.
Stockouts lead to higher operational costs. To deal with stockouts, retailers have to either reorder items or transfer inventory from another warehouse. Due to the urgency, you might have to pay more for procurement, extradited shipping, and storage.
Your staff needs to spend more time on inventory activities. Stockouts mean your employees need to spend more time looking for stock across your system, processing inventory transfer from another warehouse, or handling unplanned restocking. They will have less time to consult the customers in your stores.
To prevent out-of-stock scenarios, retailers need to optimize their inventory planning, ordering, and replenishing. A centralized inventory solution can help you keep your stock accurate at all times, forecast future demands, and collaborate with your suppliers closely.