Inventory Accuracy in Retail

by | Nov 16, 2021 | 0 comments

Application Track:

Ready Made

Code:

REACH-2021-READYMADE-MIGROS_2

Domain:

Retail

Proposed by:

MIGROS

Entity Logo:

Summary of the entity:

Migros is one of the largest FMCG retailers in Turkey. With more than 2000 stores and 30.000 employees, Migros is also the pioneer of organized retailing in Turkey. Migros today offers spacious stores in a wide range of formats and locations whose vast selection of cosmetics, stationery, glass and kitchenware, electronic appliances, book, textiles, and other items along with groceries and other necessities give it the ability to satisfy the shopping needs of its customers.
The company aims to be always the first choice of customers by providing a unique convenience and trustworthy shopping experience through its ultimate service approach, pioneer applications, broad product portfolio and family budget friendly pricing strategy.

Summary of the challenge:

This challenge is about analyzing two main components of inventory in retail: inventory accuracy through physical audits and inventory shrinkage. Inventory accuracy is about the difference between physical and recorded inventories of items. This difference can happen due to several reasons: human errors in shipment of the items, human errors in the cash registers, miscounting, damage, destroying/returning items past their expiry dates, and theft.

Description of the global challenge:

In this challenge we are going to focus on two components of inventory in retail: inventory accuracy and shrinkage (inventory differences occurring due to damage, theft). Currently, inventory accuracy is being monitored by regular audits focusing on all inventory of a store, some product categories, some items. We will share inventory movements (including audits) and sales data for the startups to come up with an audit plan. In the second part of the challenge, we will use the same data set for the startups to estimate shrinkage in the inventory of the stores.

Sub-challenges composing this experiment:

This challenge is composed of 2 sub-challenges:

  • Estimating Inventory Inaccuracies (REACH-2021-READYMADE-MIGROS_2.1)
  • Estimating inventory shrinkages (REACH-2021-READYMADE-MIGROS_2.2)

    Expected global results:

    Data driven approaches to inventory with a specific focus on shrinkage and inventory accuracy.

    Estimating inventory inaccuricies

    Code:

    REACH-2021-READYMADE-MIGROS_2.1

    Summary of the sub-challenge:

    In this challenge startups need to estimate the products that should be audited by the stores given the sales and inventory movements.

    Description of the challenge:

    In this part we will share data related to sales and inventory movements of items (SKU, stock keeping units). Startups have to estimate the inventory inaccuracies of the items and come up with audit plans for the stores where product inventories are counted and checked regularly. This helps reduce the inventory inaccuracies and help deliver a better service to the customers by reducing the shipment errors and stock out risks.

    Data to be used:

    Expected outcomes:

    An individual audit plan for each store.

    Estimating inventory shrinkages

    Code:

    REACH-2021-READYMADE-MIGROS_2.2

    Summary of the sub-challenge:

    In this challenge startups need to estimate the shrinkage of the items in the stores, that may be due to damage, theft, products past their expiry dates and so on.

    Description of the challenge:

    In this part we will share data related to sales and inventory movements of items (SKU, stock keeping units). Startups have to estimate the inventory inaccuracies of the items due to shrinkage and come up with patterns in the shrinkage. This helps reduce the inventory inaccuracies and help deliver a better service to the customers by reducing the shipment errors and stock out risks. In addition to that it can result in new effort for loss prevention in specific items or product categories.

    Data to be used:

    Expected outcomes:

    Shrinkage estimation and patterns related to the shrinkage.

    How do we apply?

    Read the Guidelines for Applicants

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    have a look at our FAQ section or drop us an email at opencall@reach-incubator.eu.

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