Retail is not facing an inventory problem, but an information deficit

In recent years, retailers have repeatedly experienced empty shelves, delivery delays and dissatisfied customers. The cause? Not necessarily a shortage of products, but a lack of visibility and control over the supply chain. And particularly in the part of the chain that retailers have the least control over: the suppliers.

The gap between customer expectations and operational reality

Modern consumers expect instant availability, error-free deliveries and real-time updates. But while the front end of retail is becoming increasingly digital and customer-centric, the back end of the operation is often stuck in Excel lists, emails and outdated systems. Order management is rigid, inventory management is based on assumptions, and the customer experience ultimately suffers as a result of this blind spot.

The root of the problem: fragmented information

Many retailers have modern ERP or WMS systems, but these systems are often not or partially integrated with those of suppliers. This creates noise in the ordering process. Stock that is available “on paper” turns out in practice to be delayed, damaged or reserved elsewhere. Orders are incorrectly estimated or adjusted too late, and the customer has to deal with back orders or incorrect delivery times.

The solution is in digitization with suppliers

It is time that we organize supply chain digitization not only within our own walls, but rather extend it to our suppliers. Through EDI integrations or supply chain collaboration platforms, retailers can involve suppliers in the order process in real time. Consider:

• Real-time inventory updates from suppliers in your own system
• Automatic order confirmations and delivery forecasts
• Track & Trace of shipments from the moment of production
• Digital performance monitoring of suppliers

These forms of integration not only provide more control, but also a more proactive approach: deviations are spotted early so that quicker action can be taken.

The bottom line: better customer experience and more efficient operations

Through digitization on the supplier side, retailers not only increase delivery reliability, but also reduce failure costs, returns and excess inventory. Moreover, promises to customers can be based on actual data instead of estimates. And that makes all the difference in a market where customer experience has become the competitive advantage.

In conclusion

Retailers who want to operate in a truly customer-centric way must invest not only in the front end, but also in the back end of their operations – and especially where it is currently least visible: at the supplier. Supply chain digitization does not stop at the front door. Only when we digitally connect the entire chain can we speak of future-proof retail.

• About
• Latest Posts

Arjan Sloot

Country Manager Benelux, UK, Ireland, and Nordics at SPS Commerce

Arjan Sloot is a visionary leader in supply chain digitization and e-invoicing, bringing over three decades of experience in driving growth, innovation, and strategic partnerships throughout the Benelux region. With a career rooted in transforming complex supply chain challenges into streamlined, data-driven solutions, Arjan is passionate about helping businesses unlock efficiency and agility through technology. His work is guided by a strong belief that seamless data integration and digital collaboration are essential to building resilient, customer-focused retail ecosystems.

Latest posts by Arjan Sloot (see all)

• Retail is not facing an inventory problem, but an information deficit - June 12, 2025