Why retail and D2C brands are still firefighting inventory — and what to do about it
The conversation that keeps repeating
Over the past year, this exchange has come up again and again in conversations with retail and D2C leaders:
“How’s your inventory health?”
“Pretty good. We’ve got it under control.”
“What’s your stockout rate? Forecast accuracy? Dead stock %?”
“…we’re working on tracking that.”
There’s no judgment here. Inventory is complex. Data lives across systems. And most teams are busy reacting to day‑to‑day issues instead of stepping back to assess the big picture.
But this pattern reveals something important.
Most brands are far more reactive in inventory planning than they realize.
The hidden cost of poor inventory management
Inventory problems don’t just show up as inconvenience — they show up on the P&L.
According to IHL Group, inventory distortion (the combined impact of overstock and out‑of‑stock situations) costs retailers $1.77 trillion globally every year.
That includes:
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Lost sales due to stockouts
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Excess inventory and markdowns
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Expedited shipping and operational inefficiencies
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Capital tied up in slow‑moving or dead stock
And while technology gaps play a role, the root cause is often simpler:
You can’t fix what you can’t clearly measure.
Why inventory planning breaks down
Many retail and D2C teams rely on a mix of ERP systems, spreadsheets, BI tools, and tribal knowledge to plan inventory. Even well‑resourced brands struggle because:
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Inventory data is fragmented across channels and systems
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Forecasts aren’t consistently measured or trusted
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Planning processes don’t scale with growth
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Execution doesn’t always reflect planning decisions
Without a clear framework, teams can’t tell whether they’re improving — or just getting lucky.
What actually defines healthy inventory
When we strip away buzzwords and dashboards, inventory health comes down to four fundamentals:
1. Inventory Visibility
Do you have a reliable, real‑time view of inventory across channels and locations?
2. Forecasting Accuracy
Are forecasts measured, trusted, and improving over time?
3. Planning Discipline
Are planning decisions repeatable, structured, and aligned to reality?
4. Operational Control
Do plans translate into execution without constant manual intervention?
If any one of these breaks down, inventory quickly turns into a firefighting exercise.
Where AI fits — and where it doesn’t
AI is often positioned as a silver bullet for inventory challenges. In reality, AI only delivers value when it’s applied with context.
The real opportunity isn’t flashy dashboards or black‑box predictions — it’s adaptive planning intelligence:
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Systems that adjust as demand changes
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Signals that highlight risk before it becomes costly
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Decision support that helps teams act with confidence
But none of this works without clarity on where you stand today.
Moving from reaction to control
Inventory complexity isn’t going away. More channels, faster fulfillment, and volatile demand are the new normal.
Brands that succeed don’t just add more tools — they:
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Establish a clear baseline for inventory health
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Focus on the highest‑impact gaps first
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Use AI where it drives real operational outcomes
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Track progress consistently over time
The shift isn’t about perfection. It’s about moving from reactive decisions to controlled, measurable improvement.
Ready to take control of inventory planning?
If inventory planning feels reactive, manual, or harder to scale than it should be, it’s time for a different approach.
Book a demo of OnePint.ai to see how our AI‑powered inventory planning and forecasting platform helps retail and D2C brands improve visibility, forecast accuracy, and operational control — without adding complexity.