Retail inventory management: How to choose the best IMS?
- Arnaud
- 6 min read
In a rapidly changing retail sector, inventory management is no longer just a logistical function: it is the heartbeat of profitability and customer experience. Yet, the operational reality is often less glorious. According to IHL Group, “inventory distortion” (the combined cost of out-of-stocks and overstocks) represents a colossal loss of nearly $2 trillion globally.
For brands looking to implement efficient distributed commerce strategies, moving away from Excel spreadsheets and aging ERPs is no longer an option, but a survival necessity. This article explores why adopting a modern inventory management system (IMS) is essential and how to choose the solution that will turn your supply chain into a growth engine.
TABLE OF CONTENTS:
- The hidden impact of obsolete inventory management
- What is a modern IMS (inventory management system)?
- Key features of a high-performance IMS
- How to choose your retail inventory system?
- Implementation: keys to success
- Measurable benefits: the ROI of modernization
- Towards the marketplace model: the next step
- FAQ: frequently asked questions about retail inventory
1. The hidden impact of obsolete inventory management
Why change if “it works okay”? Because the hidden costs of manual or fragmented management are eating into your margins. Many retailers are still navigating blindly with siloed data, leading to:
- Lost sales: One in three customers will turn to a competitor if they cannot find the product on the shelf or online.
- Tied-up capital: Safety stock (to compensate for lack of visibility) freezes valuable cash flow.
- Degraded customer experience: Nothing is worse than cancelling an e-commerce order due to a lack of actual stock.
Key figure: According to a study by McKinsey, optimizing supply chain management through AI and digitization can reduce logistics costs by 15% and inventory levels by 35%.
2. What is a modern IMS (inventory management system)?
A modern inventory management system (IMS) does not just count products. It is a technological hub that centralizes and synchronizes data in real-time across all your sales channels (physical stores, warehouses, e-commerce sites, marketplaces).
Unlike traditional monolithic ERPs, a cloud-based IMS acts as a “single source of truth.” It enables the deployment of advanced strategies like unified inventory, making all stock available for sale regardless of its physical location.
5 signs your current system is obsolete
If you recognize any of these symptoms, it is time to evolve:
- Simultaneous out-of-stocks and overstocks: You are missing best-sellers while discounting unsold items.
- Time-consuming manual processes: Your teams spend more time reconciling Excel files than selling.
- “Tunnel” vision: Impossible to see another store’s stock in real-time from the POS.
- Difficult integrations: Connecting a new marketplace or carrier takes months.
- “Gut feeling” decisions: Replenishment is based on intuition rather than data.
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3. Key features of a high-performance IMS
To meet the challenges of omnichannel retail, your inventory management solution must rely on solid technological pillars.
1. Real-time inventory visibility
This is the foundation of any ship from store strategy. The IMS must update stock levels instantly after every sale (online or in-store) to prevent overselling.
2. API-first and headless architecture
Solutions like Origami Marketplace stand out with a headless architecture. This means the inventory management engine can easily connect via API to any front-end (website, mobile app, smart mirrors) and your existing ecosystem (ERP, POS, PIM), without requiring a complete IT overhaul.
3. Artificial intelligence and automation
AI is not just for predicting sales. It allows for automating replenishment rules based on seasonality, local trends, and supplier lead times, drastically reducing human error.
4. Order management system (OMS)
A robust IMS is often coupled with OMS capabilities to intelligently route orders to the most relevant stock point (closest to the customer, or the one with the most dormant stock).
4. How to choose your retail inventory system?
The market is full of software, but not all are created equal. Here are the decisive criteria for making the right choice:
| Critères | Pourquoi c'est important ? |
|---|---|
| Intégration & API | La solution doit dialoguer nativement avec votre ERP, votre plateforme e-commerce (Shopify, Magento, VTEX...) et vos marketplaces. |
| Scalabilité | Le système peut-il gérer un pic de charge (Black Friday) ou l'ouverture de 50 nouveaux magasins sans ralentir ? |
| Flexibilité des workflows | Pouvez-vous personnaliser les règles de stock (ex: stock de sécurité par canal) sans développement spécifique ? |
| Support et Roadmap | Le fournisseur propose-t-il un accompagnement réel et des mises à jour régulières (SaaS) ? |
| Coût Total de Possession (TCO) | Au-delà du prix de la licence, considérez les coûts d'intégration, de maintenance et de formation. |
5. Implementation: keys to success
Even the best inventory software will fail if implementation is rushed. To succeed in your project:
- Clean your data: Use the migration as an opportunity to normalize your product data (SKU, EAN).
- Deploy gradually: Start with a pilot in one region or product category before a general rollout.
- Manage change: Train your store teams. The tool must be seen as an aid (fewer administrative tasks), not a constraint.
6. Measurable benefits: the ROI of modernization
Investing in a modern IMS offers a quick and quantifiable return on investment. Sector feedback generally shows:
- Sales increase (+2 to +10%): Thanks to better product availability and opening store stock to the web.
- Inventory reduction (-10 to -30%): Better rotation and less dormant stock.
- Lower operational costs: Fewer picking errors and unnecessary transfers.
7. Towards the marketplace model: the next step
A robust IMS is the necessary foundation to go further. Once your inventory is unified and mastered, you can transform your network into a true platform.
This is where the vision of distributed commerce vs traditional e-commerce becomes clear. With a solution like Origami Marketplace, you no longer just manage your own stock. You can expand your assortment by integrating third-party supplier stock (dropshipping) or helping to digitize your franchise network without cannibalization. Your IMS then becomes the conductor of an infinite ecosystem.
Modernizing your inventory management is not just an IT update; it is a strategic imperative. A modern IMS is the catalyst for your profitability and the guarantor of your customer promise.
SaaS platforms like Origami Marketplace now allow you to cross this threshold with agility, bringing the intelligence and connectivity needed to transform your logistical constraints into competitive advantages.
Ready to optimize your inventory and unify your commerce?
Discover how Origami Marketplace can transform your stores into high-performance, sustainable mini-warehouses.
Sources & ressources
IHL Group – Inventory distortion report
- Source: “Nearly $2 trillion in global losses (out-of-stocks + overstocks)”
- 🔗 Read report: Fixing Inventory Distortion – Are We There Yet?
McKinsey & Company – Supply Chain 4.0
- Source: “30% reduction in operational costs and up to 75% fewer lost sales”
- 🔗 Read article: Supply Chain 4.0 – The next-generation digital supply chain
BCG (Boston Consulting Group) – AI in retail
- Source: Strategic impact of AI and retail modernization.
- 🔗 Read analysis: Rewriting the Rules: The AI-First Retailer
8. FAQ: frequently asked questions about retail inventory
An ERP (enterprise resource planning) is generalist software managing the entire company (finance, HR, production), often with structural rigidity. An IMS (inventory management system) is a specialized solution designed for fine-tuned logistics management, omnichannel capabilities, and real-time data. Unlike a classic ERP, a modern IMS like Origami easily connects to digital and physical sales channels to provide unified inventory.
Real-time is the only way to guarantee the customer promise in an omnichannel context. Without instant updates, you risk selling a product online that was just bought in-store (overselling), leading to order cancellations and customer frustration. It is also a prerequisite for implementing strategies like ship from store.
If you notice frequent discrepancies between theoretical and physical stock, if your teams spend too much time on Excel, if you cannot easily connect new sales channels (marketplaces), or if you suffer simultaneously from stockouts on best-sellers and overstocks on other items, your system is likely obsolete.
Artificial intelligence analyzes sales history, seasonality, and trends to refine demand forecasts. It allows for precise automated replenishment, reducing capital tied up in unnecessary stock while avoiding stockouts on key products, essential for efficient distributed commerce.
