Target continues to struggle with inventory
What’s one of the worst things that a customer experiences when shopping? It’s going to the store and finding the item they want out of stock. Even Amazon understands that customers want instantaneous shipping, because they offer same-day delivery in 14 metro areas across the country. If your small business struggles with inventory management, you aren’t alone. Both Target and Wal-Mart have the same problems, and they seem to be handling them differently.
Target CEO Brian Cornell recognizes that the stores are having a problem keeping inventory in their retail stores, and he attributes this to the online shopping experience. Earlier this year, Target had to close 133 stores in Canada, partly due to empty shelves. Although Target does not have an answer yet, they are focusing on inventory management, and have reorganized their C-level positions by moving the CFO John Mulligan to a new role, that of Chief Operating Officer. When he takes on his new position on September 1, his number one priority is to revamp the supply chain.
Walmart has been working on their own challenge
Walmart reported that inventory management was one of their bright spots at the end of the second quarter in 2015. They have been keeping more inventory at the distribution centers instead of in the backroom of their stores, which offers more flexibility in meeting demands. It also helps keep their associates on the sales floor and lets them be more efficient. Walmart has upgraded technology to help their managers manage deliveries and inventory in their brick-and-mortar stores, but they keep less of it on the shelves. Although customers can be disappointed when products aren’t in stock, they can get it more quickly because they keep stock at distribution centers.
Both Walmart and Target report that they will continue to focus on inventory management. If you sell a product, it shows that you can’t let your guard down when it comes to managing goods. Your customers do not want to wait. It’s important to work on your logistics, to keep your shoppers happy.