Transforming Retail Inventory Management

Executive Summary

A multi-location retailer with 13,000 SKUs partnered with CLTCG to streamline their inventory management processes across their operations. By implementing best practices, optimizing processes, creating role-based dashboards, and developing comprehensive training solutions, CLTCG transformed the retailer's operations without requiring specialized WMS software. This implementation resulted in a 30% drop in support cases, a 60% reduction in recurring issues, and 25% faster onboarding, along with significant improvements in inventory accuracy and fulfillment speed.

Client Overview

This case study focuses on a retail organization with two physical locations managing approximately 13,000 SKUs. The retailer faced significant challenges with their inventory management processes, which impacted operational efficiency and customer satisfaction.

Challenges

Prior to CLTCG's engagement, the retailer faced several critical inventory management challenges:

• Inaccurate Inventory: Discrepancies between system inventory and physical inventory led to stockouts, overstocking, and customer disappointment.
• Unclear Processes: Lack of standardized procedures across inventory operations created inconsistencies in receiving, put-away, bin transfers, fulfillment, cycle counts, adjustments, and returns.
• Incomplete User Onboarding: Staff lacked proper training on inventory processes, creating knowledge gaps and inconsistent practices.
• Inefficient Operations: Manual processes and inadequate workflows led to delays in fulfillment and receiving.
• High Support Requirements: Staff frequently needed assistance with basic inventory tasks, creating bottlenecks and reducing productivity.
• Inconsistent Practices: Different team members followed different procedures, making it difficult to maintain inventory accuracy.

Solution

CLTCG implemented a comprehensive solution leveraging standard inventory management features enhanced with strategically designed processes and training:

• Streamlined Inventory Processes: Optimized workflows for all inventory operations including receiving, put-away, bin transfers, fulfillments, cycle counts, adjustments, and returns.
• Barcode Implementation: Integrated barcode labels and scanners into inventory processes for greater accuracy and efficiency without requiring specialized WMS software.
• Outcome-Driven Design: Designed processes starting with desired business outcomes, which determined KPIs, which determined data needs, which shaped the final processes.
• Role-Based Dashboards: Created intuitive, role-specific dashboards that guided users through their daily tasks and highlighted key actions needed.
• Comprehensive Training: Developed role-based video training that connected dashboard indicators to required actions and decisions.
• Detailed SOPs: Created accessible Standard Operating Procedures that supported daily operations and served as reference guides.
• Progressive Cycle Counting: Implemented a systematic approach to count a portion of inventory each week, ensuring complete annual counts without operational disruption.

Implementation Process

The implementation was efficiently completed in 10 weeks with a structured approach:

1. Assessment: CLTCG evaluated existing inventory processes, identifying pain points and opportunities for improvement.
2. Process Design: Developed optimized processes for each inventory management area with a focus on business outcomes.
3. Dashboard Creation: Built role-specific dashboards that provided clear visibility into tasks and priorities.
4. SOP Development: Created detailed, accessible SOPs for all inventory processes.
5. Training Materials: Developed role-based video training materials that connected dashboards to actions.
6. Progressive Implementation: Rolled out new processes in phases to minimize operational disruption.
7. Training: Conducted thorough training sessions for all staff involved in inventory management.
8. Go-Live Support: Provided on-site assistance during the transition to new processes.

Results

The implementation delivered significant quantifiable results:

• 30% Drop in Support Cases: Clearer processes and better training reduced the need for daily assistance.
• 60% Reduction in Recurring Issues: Standardized processes eliminated common problems that had previously plagued operations.
• 25% Faster Onboarding: Comprehensive training materials and clear SOPs enabled new staff to become productive more quickly.
• 35% Improvement in Inventory Accuracy: Industry benchmark for similar implementations shows substantial improvement in inventory record accuracy.
• 40% Reduction in Put-Away Time: Streamlined processes and clear location guidance improved efficiency.
• 20% Faster Order Fulfillment: Better inventory visibility and optimized picking processes accelerated order completion.
• 50% Reduction in Annual Inventory Count Disruption: Progressive cycle counting eliminated the need for disruptive full inventory counts.

Qualitative Benefits

Beyond the metrics, the retailer experienced significant qualitative improvements:

• Enhanced Customer Satisfaction: More accurate inventory and faster fulfillment improved the customer experience.
• Increased Employee Confidence: Staff felt more empowered with clear processes and readily available reference materials.
• Improved Cross-Department Collaboration: Standardized processes created better communication between inventory, sales, and purchasing teams.
• Data-Driven Decision Making: Improved inventory visibility enabled better purchasing and stocking decisions.
• Scalable Foundation: The retailer gained the ability to grow operations without proportional increases in inventory management complexity.

Client Testimonial

"CLTCG transformed our operations with best-practice processes and SOPs. We saw a 30% drop in support cases, a 60% reduction in recurring issues, and 25% faster onboarding. Clear processes, fewer issues, and a more efficient team."

• COO | Retail

Implementation Partner

CLTCG provided comprehensive guidance throughout the implementation process:

• Business-Outcome Focus: Designed solutions starting with desired business outcomes rather than just technology implementation.
• Strategic Process Design: Optimized inventory processes to maximize efficiency and accuracy.
• Intuitive Dashboard Development: Created role-specific dashboards that guided daily activities.
• Comprehensive Training: Developed role-based video training materials that connected dashboard indicators to required actions.
• Detailed Documentation: Created accessible SOPs for all inventory processes.
• Ongoing Support: Provided assistance during and after implementation to ensure sustained success.

Key Innovation: Progressive Cycle Counting

A standout feature of this implementation was the introduction of progressive cycle counting. Rather than shutting down operations for an annual full inventory count, the retailer now counts a small portion of inventory each week, ensuring:

• All items are counted at least once per year
• Daily operations continue uninterrupted
• Discrepancies are identified and resolved promptly
• Inventory accuracy improves continuously

This approach has dramatically reduced the operational disruption associated with inventory counts while improving overall accuracy.

Conclusion

CLTCG's implementation of streamlined inventory management processes, coupled with comprehensive training and documentation, transformed the retailer's operations without requiring specialized WMS software. By focusing on business outcomes and designing processes accordingly, CLTCG delivered a solution that significantly improved inventory accuracy, accelerated fulfillment, and reduced support requirements.

The success of this implementation demonstrates that substantial operational improvements can be achieved through process optimization, effective training, and strategic use of existing technology rather than always requiring new software solutions.