Dealing with Retail Operations During Covid-19 Disruption

Adapt: We quickly dug in with our clients as coronavirus impacted their business to quickly identify, AT A ITEM – STORE level, what was selling more and what was selling less. We worked with clients to implement operational changes that modified inventory levels for every store-item combination that feeds the demand patterns we’re seeing for items that we’re strongly selling, reduce inbound inventory for items with reduced demand.

We worked with clients to switch financial goals as necessary for each retailer. For those who valued liquidity, we changed the objective of our financial function that drives inventory from profit to cash. For replenishment items, we focused on ensuring a fast cash-to-cash cycle. And for seasonal goods, we worked quickly to implement quick response markdown solutions that work within the context of current demand patterns to sell though inventory and free cash as best as possible.

Altogether, we quickly re-oriented underlying business analytics to align with what was happening in the business. Ensuring we fed inventory to satisfy customer demand while generating cash while simultaneously identifying inbound commitments that should be either scaled back or canceled (if possible). Rather than shutdown the business, our clients are able to support the business, as it is today, effectively.

Operate: After implementing the adaption to the current situation, our clients are now operating an operational platform aligned to the new environment. As stores align with changing local regulation, they are limiting hours and implementing curbside delivery. And to satisfy e-commerce demands, some have shifted e-com orders to stores either making up for DC limitations or liquidating unnecessary store safety stock while maintaining more flexible inventory in DCs. Throughout all these changes, Invent continues to adjust and align analytics in the platform to both the demand pattern and the environmental situation.

Emerge: Today’s fire makes it hard to even think about returning to “normal” operations. But, with long lead times and “perishable” seasonal inventory, even now, in the midst of coping with Covid-19, retailers need good analytics that connect differing re-start scenarios to key granular operational decisions that align inventory needs. And, by evaluating the different inventory investment portfolios for different re-start scenarios, retailers can start optimizing their existing inventory and buying strategies for the re-start.