{"id":29069,"date":"2022-05-02T12:53:38","date_gmt":"2022-05-02T19:53:38","guid":{"rendered":"https:\/\/paladinpointofsale.com\/retailscience\/home\/?p=29069"},"modified":"2025-09-22T15:09:20","modified_gmt":"2025-09-22T22:09:20","slug":"reduce-supply-chain-challenges-with-technology-planning","status":"publish","type":"post","link":"https:\/\/paladinpointofsale.com\/retailscience\/home\/reduce-supply-chain-challenges-with-technology-planning\/","title":{"rendered":"Reduce Supply Chain Challenges with Technology Planning"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”rgba(0,0,0,0.29)” global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.16″ title_font=”|700||on|||||” title_text_color=”#ffffff” title_font_size=”30px” background_color=”rgba(0,0,0,0.23)” background_enable_image=”off” background_blend=”color” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ text_orientation=”center” custom_padding=”15%||15%” hover_enabled=”0″ z_index_tablet=”0″ title_text_shadow_horizontal_length_tablet=”0px” title_text_shadow_vertical_length_tablet=”0px” title_text_shadow_blur_strength_tablet=”1px” meta_text_shadow_horizontal_length_tablet=”0px” meta_text_shadow_vertical_length_tablet=”0px” meta_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” text_shadow_style=”preset2″ parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px|0px|18.95px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.17.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

Everyone in retail is aware of how the supply chain disruption has affected their stores. Not only have many store shelves been empty, online shoppers which have drop-ship options have been out of luck, too.\u00a0 Between November 1 and November 29, the height of the 2021 shopping season, out-of-stock messages in online stores rose by 258% according to the Adobe Digital Economy Index.<\/span>\u00a0<\/span><\/p>\n

A survey from the National Federation of Independent Businesses, a small-business lobbying group, reported 39% of retail businesses said supply chain shortages severely impacted them. And a new survey of consumers says 45% of consumers don\u2019t see shopping returning to normal because of supply chain shortages.\u00a0<\/span>\u00a0<\/span><\/p>\n

Although little can be done about the supply chain issues, there are some simple ways to reduce your number of \u201couts\u201d by tightening your inventory management.<\/span>\u00a0<\/span><\/p>\n

Tech Tools to Tighten Your Inventory\u00a0<\/span><\/h2>\n

Intelligent inventory management tools are essential today. Retail systems that link point of sale to inventory management to back-office operations are a requirement for businesses to stay on top of supply chain challenges.<\/span>\u00a0<\/span><\/p>\n

Market Driven Inventory Management<\/span>™<\/span> is the heart of Paladin Data Corporation<\/a>‘s retail solution and it automatically tailors seasonal stocking levels to meet customer demand. That means you no longer have to manually calculate or use your best guesstimate to adjust order quantities to meet seasonal demands. Paladin handles that chore using advanced analytics.<\/span>\u00a0<\/span><\/p>\n

Two components of the system \u2013 Suggested Order<\/span>™<\/span> and Order Analyst<\/span>™<\/span> \u2013 save stores time and money when placing orders. Suggested Order<\/span>™<\/span> provides reports from your sales history per supplier and suggests reorder quantities to maintain proper stocking levels. Order Analyst<\/span>™<\/span> helps stores find the lowest costs for products from their EDI suppliers.<\/span>\u00a0<\/span><\/p>\n

Ross Martin, owner of Caledonia Village Ace Hardware<\/a>, uses Suggested Order<\/span>™<\/span>. He says it has allowed his store to keep an in-stock percentage of 97% to 98%, which Ross says helped him earn Ace Pinnacle status as a top performing store two years in a row.<\/p>\n

\u201cOur store uses Suggested Ordering 100%. Ace considers 95% really good and we\u2019re always above that,\u201d he says.<\/p>\n

The system also has a tool called Remote Stock Check that allows stores from selected suppliers to see what items are in stock in their regional warehouses or distribution centers. This tool helps prevent out-of-stock<\/span> events<\/span> and saves a lot of time in placing EDI orders.\u00a0<\/span>\u00a0<\/span><\/p>\n

Paladin has a client in Ohio who says Order Analyst<\/span>™<\/span> and Remote Stock Check saves him eight hours on every order because he can see what his regional distribution center has in stock.<\/span>\u00a0<\/span><\/p>\n

Systems that offer multiple EDI connections make it easier to order from many different suppliers, which is a must considering today\u2019s supply chain challenges.\u00a0<\/span>\u00a0<\/span><\/p>\n

Another tool, the PaladinNsight<\/span>™<\/span> dashboard, monitors inventory and instantly shows stock outages and other problems that can lead to lost sales.<\/span>\u00a0<\/span><\/p>\n

All these tools help stores make ordering and inventory control much more efficient.\u00a0<\/span>\u00a0<\/span><\/p>\n

Formula to Maximize Your Inventory Investment<\/h2>\n

While there are many ideas about what makes a store profitable, a single measurement just doesn\u2019t provide enough information. However, evaluating inventory investments by gross margin return-on-investment (GMROI) considers all factors.<\/span>\u00a0<\/span><\/p>\n

An item could move quickly off your shelves but be a poor investment, while another item could have a poor margin or anemic sales but still be a great investment. GMROI accounts for these factors to provide a true picture of an inventory item\u2019s investment performance.<\/span>\u00a0<\/span><\/p>\n

\u201c<\/span>One of the most devastating factors against GMROI is overstock. <\/span>Overstock kills a store\u2019s gross margin return on investment,\u201d says Dan Nesmith, president of Paladin Data Corporation. \u201cGMROI on overstock is zero. Stock depth should be enough to meet expected demand for two to four order cycles and nothing more.\u201d<\/span>\u00a0<\/span><\/p>\n

Purchase cost contributes directly to margin, but it\u2019s not the most important factor in GMROI. Order cycle and minimum order quantity are critical to a healthy GMROI. The more frequently products can be ordered, the lower their warehousing costs. Higher investments due to high order minimums lower GMROI and steal dollars from other inventory investments.<\/span>\u00a0<\/span><\/p>\n

\u201cCareful evaluation of high minimum order products and consideration of alternate sources may be your ticket to increasing your GMROI and, ultimately, your bottom line,\u201d Nesmith explains.<\/span>\u00a0<\/span><\/p>\n

The concept of measuring an inventory item\u2019s performance using GMROI and increasing a store\u2019s bottom line through tight inventory control should be fundamental to its point-of-sale software package. At an absolute minimum it should:<\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][et_pb_blurb title=”Identify underperforming items that might benefit from looking at suppliers with lower order minimums. ” use_icon=”on” font_icon=”U||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Identify underperforming” _builder_version=”4.17.3″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Identify inventory items that are frequently overstocked due to high order minimums. ” use_icon=”on” font_icon=”U||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Identify inventory items t” _builder_version=”4.17.3″ _module_preset=”default” animation_style=”slide” animation_direction=”top” animation_delay=”750ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”Placement” _builder_version=”4.17.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]Technology tools such as these along with this purchasing approach will help stores make the most of their investment dollars and increase profits.<\/span>\u00a0<\/span>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

brian bullock\u00a0<\/span><\/h3>\n

Author<\/span> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Using retail technology and a planned purchasing approach helps stores reduce supply chain challenges and number of out-of-stock items.<\/p>\n","protected":false},"author":13,"featured_media":29079,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,16,4],"tags":[165,93,97,94,102,100,164],"class_list":["post-29069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-how-tos","category-industry-news","tag-caledonia-village-ace-hardware","tag-paladin-data-corporation","tag-paladin-point-of-sale","tag-point-of-sale","tag-pos","tag-retail-technology","tag-supply-chain","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nReduce Supply Chain Challenges with Technology Planning - Retail Science<\/title>\n<meta name=\"description\" content=\"Using retail technology and a planned purchasing approach helps stores reduce supply chain challenges and number of out-of-stock items.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/paladinpointofsale.com\/retailscience\/home\/reduce-supply-chain-challenges-with-technology-planning\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reduce Supply Chain Challenges with Technology Planning - 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