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In-depth insights from managing supply chains for over 25+ years

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June 8, 2026
8 min read

What Is the Retail Inventory Method? Formula & Examples

The retail inventory method helps retailers estimate inventory value without conducting a full physical stock count. This guide explains how the method works, how to calculate ending inventory using the cost-to-retail ratio, and where it fits within modern retail operations. You'll also learn the advantages and limitations of the approach, how it compares to FIFO and other valuation methods, and why many retailers are moving beyond estimation with forecasting, replenishment, and inventory planning software. Whether you're in finance, inventory management, or retail operations, understanding the retail inventory method provides valuable context for making smarter inventory decisions.
By Randi W. Stebbins Randi W. Stebbins
What Is the Retail Inventory Method? Formula & Examples
Woman using computer in a warehouse
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June 3, 2026
11 min read

SKU Rationalisation: Process, Formulas & Decision Framework

Most businesses accumulate SKUs over time, but more products do not always lead to better results. SKU rationalisation helps companies identify underperforming, redundant, and low-value products so they can reduce complexity, free up working capital, and improve inventory performance. This guide explains the SKU rationalisation process, key formulas, and practical frameworks used to build a healthier, more profitable product portfolio. Learn how to make data-driven decisions that improve inventory turnover, forecasting accuracy, and operational efficiency.
By Randi W. Stebbins Randi W. Stebbins
Wholesale Inventory Planning: How Leading Distributors Are Widening the Gap
June 2, 2026
11 min read

Wholesale Inventory Planning: How Leading Distributors Are Widening the Gap

Wholesale distribution remains a powerful business model, but the rules for success have changed. Demand volatility, margin pressure, and rising customer expectations are forcing wholesalers to move beyond reactive planning and manual processes. This article explores the growing gap between reactive and predictive operations, highlights the strategies used by top-performing wholesalers, and explains how better forecasting, inventory optimisation, and replenishment planning drive stronger service levels and profitability. Learn what it takes to stay competitive in an increasingly complex wholesale environment.
By Randi W. Stebbins Randi W. Stebbins
Machine Learning in Retail: Use Cases, Benefits, and Inventory Examples
May 28, 2026
10 min read

Machine Learning in Retail: Use Cases, Benefits, and Inventory Examples

Machine learning is transforming how retailers forecast demand, manage inventory, and respond to changing customer behaviour. This guide explores the most important retail use cases, from automated replenishment and assortment optimisation to pricing and supply chain planning. Learn how machine learning improves forecast accuracy, reduces stockouts, and helps retailers make faster, data-driven inventory decisions at scale. Discover the practical benefits, common challenges, and real-world examples shaping modern retail operations.
By Randi W. Stebbins Randi W. Stebbins
Stock to Sales Ratio: Definition, Formula and How to Optimise It
April 28, 2026
7 min read

Stock to Sales Ratio: Definition, Formula and How to Optimise It

The stock to sales ratio helps businesses understand whether inventory levels are aligned with demand. It highlights when stock is tying up too much capital or when there is a risk of stockouts. By improving forecasting, replenishment, and inventory visibility, companies can achieve a better balance between availability and efficiency. This guide explains how the ratio works, how to calculate it, and how to use it to optimise inventory performance.
By Randi W. Stebbins Randi W. Stebbins
Inventory Management Problems: Common Challenges and How to Solve Them
April 21, 2026
7 min read

Inventory Management Problems: Common Challenges and How to Solve Them

Inventory management problems can quietly drain profitability through excess stock, stockouts, and poor decision-making. These challenges often stem from the same root causes: inaccurate forecasting, limited visibility, and inefficient processes. By addressing these issues with data-driven strategies, businesses can improve stock control, reduce waste, and increase service levels. This guide explores the most common inventory problems and outlines practical ways to solve them.
By Randi W. Stebbins Randi W. Stebbins
Gross Margin Return on Inventory Investment (GMROI)
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April 15, 2026
9 min read

GMROI Explained: Formula, Meaning and How to Improve Inventory Profitability

GMROI reveals how effectively your inventory is generating profit by connecting margin performance with stock investment. It helps businesses understand which products drive returns and which tie up capital without delivering value. By improving forecasting, optimising inventory levels, and focusing on high-performing SKUs, companies can strengthen profitability and cash flow. This guide explains how GMROI works and how to use it to make smarter inventory decisions.
By Randi W. Stebbins Randi W. Stebbins

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