Grocers Eye Outsourced Automation to Tackle Inventory Accuracy Challenges
A new report reveals notable challenges for grocery retailers in maintaining accurate inventory and on-shelf availability, leading many to consider outsourced automation solutions. Research indicates that less than 25% of retailers achieve 80% accuracy in key areas like on-shelf availability, planogram compliance, and promotional execution. This inaccuracy is impacting business, with half of respondents reporting lost sales and a similar proportion citing customer dissatisfaction due to poor inventory management.
The lack of a “consistent view of on-shelf conditions” is a core issue, according to Greg Buzek, president of IHL Group. “That visibility gap undermines confidence across the value chain, including the trust consumer brands place in retail partners,” he stated.
Facing these difficulties, retailers are increasingly looking to technology for solutions, with robotics emerging as the most favored option.The research shows a strong interest in automation, surpassing tools like handheld RFID scanners, fixed cameras, and traditional barcode systems.
Notably, approximately 72% of surveyed retailers expressed readiness to deploy in-store robots, with 60% planning implementation by 2027.A significant trend identified in the report is a preference for managed automation – retailers largely (two-thirds) prefer not to directly own or operate the technology, instead opting for data services provided through outsourced models.
David Pinn, CEO of Brain corp, confirmed this industry shift. “Retailers are eager to improve inventory accuracy and shelf execution but prefer models that do not require them to maintain the technology,” he saeid.
The findings suggest a potential reshaping of how grocers monitor store conditions and ensure inventory accuracy, with managed automation poised to play a key role in the coming years.
