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There's a few comments asking why this can't be done by subtracting sales from ordered inventory. All large retailers do this, I've worked on this problem, but

There's a few comments asking why this can't be done by subtracting sales from ordered inventory. All large retailers do this, I've worked on this problem, but there are lots of things that reduce the accuracy of the data-driven approach: • Theft • Spoiled/broken products • Customers taking a product then browsing for another hour before checking out • Customers buying multiple flavours of a product with the same price but different UPCs, which the cashier rings up by scanning the first product then hitting "times 10" • There is stock on the shelf, but it's hidden behind something else or out of reach • There is stock in the store, but not on the shelf (many retailers don't track backroom → shelf stocking) • Product is stocked in multiple locations in the store, one of which is empty • Plus all the usual data issues caused by wrong barcode scanned, data entry error, out-of-date information about units per box, etc Those issues are all small, but still significant: • For slow-moving products, being a few units off can mean the difference between out of stock and 1 month stock remaining. • Even for fast-moving products these errors add up over time, you never really get a ground-truth event to reset the error drift. Stocktake and out-of-stock help but are infrequent and not a perfect reflection of reality. There's a big unsexy industry working on this problem with data and human checks. The economics of robots, drones, smart shelves, and smart carts don't seem competitive right now. When you have 10k stores in the US, the expense is massive.

ictebres 6y ago
> Customers buying multiple flavours of a product with the same price but different UPCs, which the cashier rings up by scanning the first product then hitting "times 10" I worked at retail (Uniqlo to be specific) and it was definetely a rule to not do this. They wanted us to scan everything one by one even if they were the same color and size. This allowed for a pretty accurate information on stock, e.g. we could see how many of a given sweater in given size and color is still in storage etc. Probably this is too tedius for some retail (groceries with very small unit price) but very smart rule in general.
- rurp 6y ago
  The rule is probably on the books at most retail stores, getting everyone to follow it all the time though is another matter. Cashiers and their direct supervisors could easily not understand or care about the rule and ignore it to save a few seconds on big orders.
  - deleted 6y ago
    [deleted]
parliament32 6y ago
90% of these problems are fixable with RFID tags, which are relatively cheap to roll out and maintain. Lululemon has been doing it for years[1], any insights about why it's not more popular? https://www.globenewswire.com/news-release/2017/05/16/1257127/0/en/lululemon-honored-with-Best-Retail-RFID-Implementation-industry-award.html https://www.globenewswire.com/news-release/2017/05/16/125712...
- fma 6y ago
  This is a great question...When I was in college in the 2000s RFID was going to be a game changer. The ability to track everything...the ability to just push your cart out and pay without scanning your items. Technology is there, but my only guess is somehow it's cheaper to have stolen items and less accurate counts.
  - theptip 6y ago
    I believe Walmart uses RFID extensively in their logistics/distribution pipeline, and they have a lot of control over their suppliers, so I'd assume they would use it in the store if it was viable. https://www.atlasrfidstore.com/rfid-insider/walmart-and-rfid-the-relationship-that-put-rfid-on-the-map https://www.atlasrfidstore.com/rfid-insider/walmart-and-rfid... I'd be interested to know the precise reasons for not using RFID on items though, I suspect it might be something like "tagging $1 items is cost-prohibitive, and the system isn't useful if you don't tag every item".
    - parliament32 6y ago
      I'd be more inclined to suspect that the sheer square footage of their stores makes it cost-prohibitive to outfit the space with the sensor infrastructure (comparing to Lululemon, who has much smaller stores). The tags themselves are fractions of a penny (I'm seeing $0.002 on alibaba) and are just applied as stickers, so I don't think that's too much of an issue -- not to mention Walmart probably has the buying power to insist their suppliers pre-tag all items.
      - 6y ago
fma 6y ago
Self-checkouts I'm sure now screw with the accuracy too..
- lhurtig 6y ago
  At least with self-check out, every single items needs to be scanned, as there is no "times 10" button, and they get picky about sensing weight after each item. This can be quibbled of course (skip bagging, theft, etc).
  - zbrozek 6y ago
    The weight checking drives me up a wall. I use this primarily at hardware stores and I frequently can't fit large/heavy items on the output scale. Or the opposite problem, I'm buying a shim or a screw and it simply doesn't register.
    - deleted 6y ago
      [deleted]
- TenebrisNoctis 6y ago
  For sure, after having discussed with someone working there I can tell you results are awful.

ictebres 6y ago

> Customers buying multiple flavours of a product with the same price but different UPCs, which the cashier rings up by scanning the first product then hitting "times 10" I worked at retail (Uniqlo to be specific) and it was definetely a rule to not do this. They wanted us to scan everything one by one even if they were the same color and size. This allowed for a pretty accurate information on stock, e.g. we could see how many of a given sweater in given size and color is still in storage etc. Probably this is too tedius for some retail (groceries with very small unit price) but very smart rule in general.

rurp 6y ago
The rule is probably on the books at most retail stores, getting everyone to follow it all the time though is another matter. Cashiers and their direct supervisors could easily not understand or care about the rule and ignore it to save a few seconds on big orders.
- deleted 6y ago
  [deleted]

parliament32 6y ago

90% of these problems are fixable with RFID tags, which are relatively cheap to roll out and maintain. Lululemon has been doing it for years[1], any insights about why it's not more popular? https://www.globenewswire.com/news-release/2017/05/16/1257127/0/en/lululemon-honored-with-Best-Retail-RFID-Implementation-industry-award.html https://www.globenewswire.com/news-release/2017/05/16/125712...

fma 6y ago
This is a great question...When I was in college in the 2000s RFID was going to be a game changer. The ability to track everything...the ability to just push your cart out and pay without scanning your items. Technology is there, but my only guess is somehow it's cheaper to have stolen items and less accurate counts.
- theptip 6y ago
  I believe Walmart uses RFID extensively in their logistics/distribution pipeline, and they have a lot of control over their suppliers, so I'd assume they would use it in the store if it was viable. https://www.atlasrfidstore.com/rfid-insider/walmart-and-rfid-the-relationship-that-put-rfid-on-the-map https://www.atlasrfidstore.com/rfid-insider/walmart-and-rfid... I'd be interested to know the precise reasons for not using RFID on items though, I suspect it might be something like "tagging $1 items is cost-prohibitive, and the system isn't useful if you don't tag every item".
  - parliament32 6y ago
    I'd be more inclined to suspect that the sheer square footage of their stores makes it cost-prohibitive to outfit the space with the sensor infrastructure (comparing to Lululemon, who has much smaller stores). The tags themselves are fractions of a penny (I'm seeing $0.002 on alibaba) and are just applied as stickers, so I don't think that's too much of an issue -- not to mention Walmart probably has the buying power to insist their suppliers pre-tag all items.
    - 6y ago

fma 6y ago

Self-checkouts I'm sure now screw with the accuracy too..

lhurtig 6y ago
At least with self-check out, every single items needs to be scanned, as there is no "times 10" button, and they get picky about sensing weight after each item. This can be quibbled of course (skip bagging, theft, etc).
- zbrozek 6y ago
  The weight checking drives me up a wall. I use this primarily at hardware stores and I frequently can't fit large/heavy items on the output scale. Or the opposite problem, I'm buying a shim or a screw and it simply doesn't register.
  - deleted 6y ago
    [deleted]
TenebrisNoctis 6y ago
For sure, after having discussed with someone working there I can tell you results are awful.