In an environment where commodity volatility, lead times and competition are increasing the pressure on supply management and logistics, companies need to optimize their inventory management to guarantee profitability.
Good inventory management, combined with an effective pricing strategy, becomes an essential lever for maximizing service levels while keeping storage costs under control.
At Optimix Solutionswe help retailers to optimize inventory and procurement through inventory management software and predictive tools that enable them to track changes in quantities, reduce dormant stocks and anticipate stock-outs.
This article explores how synchronizing prices and inventories not only maximizes profitability but also improves customer satisfaction, by guaranteeing the availability of finished products and optimizing stocking quantities.
Understanding the interdependence between price and stock level
Pricing and inventory management: two levers often managed in silos
Historically, the functions of replenishment and pricing were managed independently, often with contradictory objectives. The pricing aims to optimize profitability by adjusting prices according to available available inventoryquantities quantities required and safety stocks. While stocks focuses on inventory reduction, control of dormant dormant stocks and compliance with order points to avoid stock-outs.
This separation creates operational dissonance. For example, a poorly adjusted order placement can lead to an excess of stocks and, conversely, an insufficient stock can hinder sales of high-potential products.
Pricing and Supply Chain: Towards an integrated, strategic approach
An integrated approach between price and inventories allows you to manage the inventory requirements depending on demand and specific management methods. The use of a inventory management software allows you to model item inventories and dynamically adjust
Artificial Intelligence and Data: At the Heart of Inventory and Price Management
AI at the heart of prediction
Artificial intelligence (AI)-based solutions enable us to predict supply needs, optimize inventory stock quantities and adjust stock levels stock levels based on consumer trends and unforeseen events. By analyzing sales histories and taking into account external factors (seasonality, market trends, etc.), AI can determine the most appropriate safety stocks and automatically adjust stock levels stock levels.
Thanks to artificial intelligence applied to the supply chain and pricingNow, companies can model demand at a very granular level (store, channel, reference, day). This makes it possible to:
- Anticipate sales peaks and troughs with greater precision.
- More agile adaptation of restocking levels.
- Simulate the impact of different price scenarios on inventory turnover stocks.
AI algorithms can also simulate replenishment scenarios and test the impact of price adjustments on inventory management. inventories.
Leverage multiple data sources for real-time inventory management
The integration of this data in real time also makes it possible to optimizesupply based on demand fluctuations and pricing adjusted. Our Optimix solutions are based on an open, interconnected architecture that combines :
- Sales histories and product life cycles.
- Inventory stock levels in real time, including dormant stocks.
- Promotional cannibalization effects.
- Competitive pricing data pricing.
This holistic approach feeds optimization algorithms capable of automatically recommending the best actions: price repositioning, activating a promotion, adjusting the restocking plan, and so on.
Impact of Promotion on Inventory Management and Profitability
Targeted promotions, designed to clear excess inventory excess inventorycan be a powerful lever for optimizing inventory management. inventory managementparticularly for perishable or seasonal products. Rather than resorting to mass promotions that risk devaluing the brand and disrupting the supply chain, it is more appropriate to adopt a targeted approach.
A well-targeted promotion enables surplus products to be disposed of without destroying price perception. It also helps maintain a minimum stock while optimizing safety stocks. This strategic approach reduces losses due to obsolescence while guaranteeing optimum profitability.
The risks of mass promotions:
- Destroying value.
- Used to waiting for discounts.
- Unbalance the supply chain by generating yo-yo effects.
With an intelligent approach, promotion becomes a surgical tool for profitability.
Use case: strategically absorb overstock
Let’s take the example of a retailer with an excess of surplus stock on a seasonal category. Thanks to our solution, the retailer can :
- Segment sales outlets according to local sales dynamics.
- Identify areas with potential for rapid drainage.
- Launch a geographically targeted promotion, only on stores with a favorable track record.
- Adapt the duration and intensity of the promotion to the actual rate of sales.
The result: finer management, greater respect for perceived value, and better-preserved margins.
How competitor price monitoring enables pure players to effectively manage their strategy
For pure players and retailers who are very active on marketplaces or comparators such as Google Shopping, monitoring competitors’ prices is an essential strategic lever. In an ultra-competitive environment, where price comparison is instantaneous and visible to all, rapid price adjustment becomes essential.
Continuous price monitoring not only enables you to adapt your strategy in real time to maintain an attractive price, but also to optimize your advertising investments. A product that’s too expensive compared to the competition risks losing precious clicks without converting, thus negatively impacting ROAS (Return on Ad Spend).
By leveraging advanced price monitoring tools, retailers can simultaneously adjust their selling prices and advertising auctions. This enables them to improve their visibility on marketplaces while controlling their acquisition costs, guaranteeing more effective management of their sales strategy.
Agility as a competitive advantage for real-time inventory and price management
React quickly with an inventory tracking system
In an increasingly dynamic business environment, agility is a key lever for controlling inventories. inventories and adjust prices in real time. To stay competitive, it’s no longer enough to rely on fixed annual plans. It is now crucial to be able to :
- Identify weak signals (sales slowdown, overstocking, rising costs).
- Implement automated corrective actions.
- Simulate scenarios and make decisions quickly.
Optimix solutions offer this agility by relying on a modular cloud infrastructure, perfectly integrated with business systems (ERP, WMS, CRM, etc.), enabling fluid, reactive management of inventories and prices.
Case study: pricing-stock arbitrage on a launch reference
When launching a new product, prediction is often uncertain. Suppose the product takes off more slowly than expected. With our tools, the retailer can :
- Analyze purchasing behavior over the first few days.
- Decide to slightly reduce the price on certain test areas.
Measure demand elasticity and readjust supply strategysupply strategy strategy accordingly.
Better Customer Experience, Sustainable Profitability
Product availability and price perception: two pillars of satisfaction
The right balance between stocks and pricing policy not only benefits margins, but also plays an essential role in building customer loyalty. Today, customers expect :
- Fair prices consistent with the brand’s image.
- Availability of productsboth online and in-store.
- Clear, relevant promotions.
By aligning sales strategy and logistics, retailers offer a more fluid, predictable and engaging shopping experience. Thanks to the availability of stocks and optimized price management, they reduce the risk of stock-outs and strengthen customer loyalty.
Optimix Solutions supports its customers in this process by integrating advanced inventory management tools inventory management and pricingfor agile, efficient management of their sales and logistics operations.
Synchronize pricing and inventory to drive performance
In this age of data and ultra-volatility, companies that manage to intelligently synchronize their pricing strategy and inventory management have a major competitive advantage.
This involves :
- A unified vision of data, breaking down silos.
- Automated, predictive decision-support tools.
- The ability to orchestrate targeted, rapid and measurable actions.
At Optimix Solutions, we’re convinced that the future of retail lies in this convergence. Our solutions enable pricing, supply chain and sales managers to work together, in real time, to deliver sustainable profitability and an enhanced customer experience.
