The Challenge
Large retailer had aged inventory scattered across stores, distribution centers and return centers in quantities that were too small to send to stores.
- One of the world’s top retailers with over one million SKU’s had millions of dollars in idle inventory, taking up valuable space at store level and throughout its supply chain
- The store level write-down process was slow and failed to get adequate sales velocity even after in-store 75% markdowns.
- Approximately 10% of all store inventory required some repricing, leading to a huge administrative effort.
- Much of the inventory in the distribution centers and return centers was awaiting some sort of write down process or had already been written down and did not appear on managements inventory radar. Most of this inventory was sold through B2B channels at extremely low recoveries or continued to age.
