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Phantom Inventory May Be Retailers’ Biggest Holiday Season Headache

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

Misplaced products could make or break retailers’ holiday season performance.

“Phantom inventory,” also known as goods that show up in management systems as available but are hidden from view because they are essentially lost, continue to remain a major dilemma for retailers during the November to January period, The Wall Street Journal reported.

When retailers don’t know their on-shelf availability, the results can be costly.

Sales could plummet if shoppers are constantly unable to find products, and operating costs could increase if store employees have to focus their efforts on missing item queries. Supply chains are also negatively impacted with faulty demand forecasting and inaccurate stock reads.

Read more at Sourcing Journal.

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