The invisible cost of retail: how technology can curb losses in inventory

Have you ever stopped to think how much money your company may be losing because of poor inventory management? In times of high demand, disorganization can be expensive. According to the Abrappe Survey of Losses in Brazilian Retail 2024, the average rate of losses in retail storage grew 6% compared to the previous year an estimated loss in R$ 34.9 billion for the sector, equivalent to up to 10% of revenue.

“These losses are not only financial. They impact the operation as a whole: delays in replacement, lost sales due to lack of products and excess of stopped items compromise the health of the business.And there are still those who try to solve everything on paper or in spreadsheets, which only increases the risk of error and waste of time”, comments Zoltan Schwab, executive director of vhsys, a technology company specializing in online business management solutions.

And the impact is not limited to companies, the consumer also feels the reflections of poor inventory management. The unavailability of products, delays in deliveries and even the lack of variety on the shelves directly affect the shopping experience. When the customer does not find what he is looking for or faces slow service, frustration can lead him to look for alternatives in the competition and often not return anymore. 

The good news is that this scenario can be transformed with the adoption of the right technology. An efficient management system, designed for the reality of SMEs, allows you to automate inventory control, centralize information and facilitate access to real-time data.In addition, integrated tools, such as management software, help prevent disruptions, predict replacement needs and optimize product turnover, especially in periods of high demand.

For the expert, the adoption of technology in inventory management is not only a trend, but an urgent need. “The sooner companies migrate to digital systems, the greater the chances of achieving consistent results with less effort.In a scenario where time is one of the most scarce and valuable resources, wasting it with processes that could be automated is no longer a viable option”, concludes Zoltan.