Improving inventory record accuracy innovation summit

Professor Aris Syntetos is a specialist in logistics and manufacturing. He has been credited with uniting the disciplines of forecasting and inventory optimisation making him a natural academic partner of Efficient Consumer Response (ECR).

ECR is a trade association that supports the retail industry. They have various working groups, with the biggest one monitoring inventory inaccuracies and loss. This is one of the most important issues facing modern retail business.

This highly engaged working group consists of senior managers and directors responsible for inventory record counting, accuracy, and on-shelf availability from large grocery and fashion retailers. The purpose of their in-person meetings is to reflect on the latest research from academia, and share their latest interventions targeted to keep records accurate and items in stock. This year the event, hosted in Marks & Spencer’s Head Office in Paddington, brought together fifty senior staff from across the industry.

Explaining why effective inventory records are crucial to retail business, Professor Syntetos said:

A typical retail store contains about 20,000–65,000 products and to manage such inventories, companies rely upon digital software. There is a fundamental assumption that the inventory records are correct, and this is inaccurate in 65% of cases. The root causes of Inventory Record Inaccuracies (IRIs) vary considerably, from theft to misplacement, but their collective implications are always the same.

ECR selectively sponsors research projects, and Professor Syntetos has collaborated with the organisation since 2017. His work, recently also agreed for funding with an IAA EPSRC grant, has delivered significant impact within the retail sector, and he is currently partnering with ECR to demonstrate the commercial value of their joint research. Additionally, visits to many retailers to establish the utility and commercial value of the research collaboration are also being organised through the grant. This collaboration, supported by existing evidence, is being prepared as a REF 2029 impact case study.

Professor Syntetos gave an update on his ECR-funded research work at the in-person meeting in collaboration with colleagues Yacine Rekik from ESCP Business School in Paris, and Christoph Glock from TU Darmstadt in Germany.

Speaking about the workshop and his ongoing achievements alongside ECR:

“Our work with ECR has led to the development of some very impactful business models and algorithms. The workshop provided the opportunity to share our knowledge and relevant research directly with managers and directors of the retail industry. This is in turns of immense value towards bridging the gap between the theory and practice of retail operations management."