Despite making significant investments in the technology of information systems planning, retailers are struggling with two problems of execution - inventory inaccuracy and misplaced records of stock items (SKU) - to the detriment of their performance and ability to meet customer needs. At one leading retailer, 65% of inventory records were inaccurate (for example, recorded inventory levels do not reflect the actual level of reserves). Misplaced items in another leading retailer to prevent one of the six clients who asked for help from a sales associate to find products that were available in the store. This task can be reduced profit by more than 10%. In addition, the performance of these two dimensions of execution varies significantly among stores within the same chain, who use the same IT. After studying the systematic differences that exist between the shops, this article identifies the drivers of inventory record inaccuracy and misplaced items, and encourages retailers are steps you can take to improve operational performance in their chains. "Hide
by Ananth KR, Nicole DeHoratius, Zeynep Ton Source: California Management Review 18 pages. Publication Date: April 1, 2001. Prod. #: CMR204-PDF-ENG
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