Many large retailers use complex information systems to track individual items of inventory across many locations and even countries. According to Procurement Leaders, Marks and Spencer (a large UK retail firm) started to roll out new technology in 2010 to manage inventory forecasting, order replenishment and planning for its food division. The new system called Q, from leading retail software provider Quantum Retail Technology Inc, will forecast and make inventory decisions in real-time. The software can forecast inventory requirements to the individual Stock Keeping Unit (SKU) level for every Marks and Spencer store. According to Quantum Retail’s website, the Q product can even learn as product behaviours change.

In addition to inventory tracking, Q assists inventory buying by considering factors such as current inventory levels, daily buying patterns, waste, seasonality and inventory availability. According to Chris Allan, Quantum Retail’s chief strategy officer and co-founder, Q will ‘provide M&S with capabilities that can provide real competitive advantage in the marketplace’.

Questions 

1 A system such as the Q software requires a lot of data inputs. Can you think of some examples of how data is captured in the software?

2 Do you think an inventory valuation is available for any store or distribution centre at any time from the software?