Podcast

The Boardroom Forecast: Fixing Inventory Distortion Episode 2

Deep Dive Podcast Series on Retail’s Most Critical Challenge

The $1.73 Trillion Inventory Crisis: Episode 2

Breaking Down the Numbers: Where $1.73 Trillion Actually Disappears

Global retail is hemorrhaging $1.73 trillion annually through inventory distortion, the gap between what customers want and what’s actually available. That’s equivalent to South Korea’s entire GDP, disappearing every year.

Despite massive digital transformation investments, retailers still can’t solve basic supply-demand matching. This podcast series unpacks the IHL Group research to reveal why the problem persists and what’s actually working for the companies that are winning.
New episodes weekly. Read the full report >

Episode Two – Insights

1. The remaining 6.5% isn’t just waste. It’s competitive advantage waiting to be claimed – Progress is being made (down from 10.4% in 2021), but the current burden still costs retailers $4.7 billion every single day. Early adopters of integrated solutions are capturing market share while competitors struggle with basic execution.

2. Inflation and tariffs broke traditional forecasting – The external shocks of recent years have exposed how fragile legacy planning systems really are. Retailers need adaptive, signal-driven approaches that respond to real-time market conditions rather than historical patterns that no longer apply.

3. Technology isn’t failing. Implementation is – Retailers have invested heavily in AI, machine learning, and sophisticated analytics. Yet a 17-point gap exists between what systems report (92% in-stock) and what customers actually experience (75% purchase success). The issue isn’t the tools but the disconnected decision-making, data silos, and failure to integrate technology into operational workflows.

4. Signal-driven forecasting separates leaders from laggards – The two-thirds of losses coming from out-of-stocks ($1.157 trillion) prove that demand sensing is the primary battleground. Winners are moving beyond reactive replenishment to predictive, signal-based planning that anticipates customer needs before stockouts occur.

This series examines IHL Group’s comprehensive global research on inventory distortion, including regional performance disparities, segment-specific vulnerabilities, and proven solutions from retailers achieving 95%+ inventory accuracy. Read the full report >