Digital Transformation in Retail: How Real-Time Inventory Tracking is Improving Customer Experience
In today’s retail world, staying ahead of the competition isn’t just about having great products, it’s about knowing exactly what you have in stock and where it is at all times. Gone are the days of manually counting inventory and updating spreadsheets. Modern retailers are embracing digital solutions that give them instant visibility into their stock levels, helping them serve customers better and boost their bottom line.
The Reality of Modern Inventory Management
Picture this: A customer walks into your store looking for a specific product. In the past, your staff might have had to physically check the stockroom, call other locations, or worse, tell the customer to “check back later.” Now, with real-time inventory tracking, they can instantly see if the item is available, not just in their store, but across all locations and online channels.
For example, when a customer orders a product online for in-store pickup, real-time tracking ensures the item is actually available before the promise is made. This prevents the frustrating experience of customers arriving to collect their purchases only to find out the item is actually out of stock. Cin7’s dashboard makes this possible by providing a complete view of inventory across all locations, while its integrated point-of-sale system keeps everything synchronized as sales happen.
Smart Reordering: Never Miss a Sale
Think about a busy fashion retailer during the holiday season. Without automated reordering, they might run out of popular items just when demand peaks, losing valuable sales. With Cin7’s smart reordering system, the store can automatically track which items are selling quickly and place new orders before they run out. The system even considers factors like how long suppliers take to deliver and which seasons certain products sell best in.
Take global beauty giant Sephora for example who uses real-time inventory tracking to manage their extensive range of beauty products. Their AI-driven forecasting system tracks not only stock levels but also product testers and samples. When inventory runs low, the system automatically notifies staff to restock testers and triggers reorders for popular items.
Pricing That Responds to Reality
Smart pricing isn’t just for airlines and hotels anymore. Real-time inventory tracking helps retailers adjust prices based on what’s actually happening in their stores. For instance, if a product isn’t selling as well as expected, the system can automatically begin marking down prices to move inventory before it becomes outdated. Cin7’s automated pricing system makes this possible, helping retailers avoid the costly mistake of holding onto inventory too long.
Consider a sporting goods store during the changing seasons: As winter gear sales slow down in early spring, the system can automatically adjust prices to clear out remaining inventory, making room for summer products. This means less merchandise gathering dust in warehouses and more profit from timely sales.
Making Better Decisions with Real Data
When retailers can see exactly what’s happening with their inventory, they make better decisions. Cin7’s business intelligence tools show which products are flying off the shelves and which ones are sitting around. This helps store managers answer crucial questions like: Should we order more of this product? Should we move it to a different location in the store? Should we run a promotion?
Through embedded RFID chips in clothing tags, Zara tracks every garment from warehouse to store, collecting real-time data about which items enter dressing rooms, reach the point of sale, and how quickly they sell. Their central data hub operates 24/7 to process this information across 6,000+ stores, enabling them to quickly increase production of popular items while phasing out less successful ones. This data-driven approach has proven remarkably effective, allowing Zara to achieve 12 inventory turns annually (compared to their competitors’ 3-4 turns) and sell 85% of their items at full price while maintaining only 10% unsold inventory (versus the industry average of 17-20%).
The Future is Getting Smarter
The retail world is moving toward even smarter systems powered by artificial intelligence. Cin7’s Foresight AI is leading this charge, helping retailers predict what customers will want before they even ask for it. Imagine being able to stock up on items before they trend, or knowing exactly how much inventory you’ll need for next season.
Real Success Stories
The proof is in the results. Take Peta + Jain, a rapidly growing Australian fashion company specializing in handbags and accessories. As they expanded globally into North America, managing inventory across online sales, brick-and-mortar stores, and their warehouse became impossible with traditional methods. Since switching to Cin7 in 2020, they’ve saved over $130K per year and countless hours of manual work. As co-founder Jennifer puts it, “It definitely saves time. It’s all live, it’s real time.”
The Bottom Line
In today’s retail environment, having real-time inventory tracking isn’t just a nice-to-have, it’s essential for survival. When customers can buy through so many different channels, in store, online, through marketplaces, or via social media, keeping track of inventory manually just isn’t feasible anymore.
Ready to transform your retail business? Book a free consultation with our expert consultants to learn how Cin7 can revolutionize your operations. Because in today’s retail world, knowing what’s on your shelves in real-time isn’t just about organization, it’s about giving customers what they want, when they want it.
References
BoxHero (2023). Zero Inventory System Built On a Fast Fashion Strategy – Zara. [online] BoxHero Blog. Available at:
https://www.boxhero.io/en/blog/zaras-zero-inventory-system-built-on-a-fast-fashion-strategy.
Business Wire (2021). Sephora Implements AI-Based Solution from RELEX to Improve Availability Across Distribution Network. [online] http://www.businesswire.com. Available at: https://www.businesswire.com/news/home/20211021005267/en/Sephora-Implements-AI-Based-Solution-from-RELEX-to-Improve-Availability-Across-Distribution-Network.
Cin7 (n.d.). Peta + Jain | Cin7 Case Study | Fashion and Apparel. [online] http://www.cin7.com. Available at: https://www.cin7.com/our-customers/customer-success-stories/fashion-and-apparel/peta-plus-jain/.