Why inventory accuracy matters for peak season success – Insights from Michael Schertz

With the holiday season approaching, retailers are bracing for a surge in orders. One factor can make or break their success: inventory accuracy. Michael Schertz, a logistics expert who’s worked with brands like True Classic, Allbirds, and ThirdLove, knows how critical it is to keep stock levels accurate when every sale counts. Here’s what Schertz shared on why accurate inventory inventory matters - and how it helps retailers win over customers during peak season.

Why inventory accuracy matters during peak season

During peak season, even small inventory errors can lead to big issues. When stock information is reliable, customers get what they want, and retailers avoid costly mistakes. Here’s how accurate inventory makes a difference in 5 critical areas.

1. Reliable stock availability

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Problem: The “phantom stock” problem

Imagine a customer finds an item they love, hits “buy,” and then receives an email saying it’s actually out of stock. This “phantom stock” problem - when items show as available but aren’t - can quickly damage a brand’s reputation.

Solution: Real-time data for reliability

Using real-time inventory data helps retailers show customers exactly what’s available. This:

• Reduces the chance of disappointing shoppers with canceled orders (you can measure how many orders were not fulfilled and target to reduce it by 25% every month)
• Builds trust by providing accurate product availability
• Creates a seamless experience for the customer

2. Optimized inventory levels

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Problem: Excess inventory is costly

Excess inventory isn’t just a matter of space. Especially during peak season, overstocking means:

• Higher storage costs
• Potential markdowns on unsold items
• Tied-up funds that could be used elsewhere

Solution: Balance stock with demand

With accurate inventory data, retailers can stock the right amount of products. Schertz explains that data-driven inventory management:

• Reduces overstock without risking stockouts
• Ensures products are available without overwhelming storage
• Helps brands meet demand while keeping costs in check

3. Smooth multi-location fulfillment

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Problem: Managing multi-location inventory is difficult

When brands work with multiple warehouses or third-party logistics (3PL) providers, tracking inventory gets tricky. Without a unified view, issues can arise:

• Products may get lost or split between locations
• Split shipments occur when inventory is misaligned across DCs, leading to extra shipping costs and delivery delays.
• This causes inconvenience for both retailers and customers

Solution: Centralized data for fulfillment consistency

To avoid these challenges, Schertz suggests using a centralized inventory system that syncs data from all locations. Don’t wait for the month end to reconcile your ERP and update your shopify stores. And ask your 3PL to send inventory reports every week. This setup:

• Allows retailers to see stock across all sites in real-time
• Ensure inventory alignment across DCs to consolidate shipments and reduce costs
• Keeps shipments accurate and on time
• Boosts customer satisfaction by ensuring orders arrive as expected

4. Planning for high-demand products

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Problem: Meeting peak season demand

During peak season, popular products tend to sell fast. Without accurate data, retailers risk:

• Stockouts, which frustrate customers looking for popular items
• Overstocks, leading to excess inventory and lost profitability

Solution: Use data to predict demand

Real-time data enables retailers to track buying trends and adjust stock levels proactively. Schertz notes that with accurate data:

• Brands can take better decisions about which SKUs to buy and when to buy to meet the demand
• Brands can keep top-selling items available
• Customers are less likely to face disappointment with sold-out items

5. Enhancing customer experience

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Problem: Canceled orders impact loyalty

Canceled orders aren’t just inconvenient - they’re frustrating for customers. During peak season, canceled orders can:

• Lead customers to shop elsewhere
• Damage a brand’s reputation for reliability

Solution: Use accuracy to improve loyalty

By ensuring inventory accuracy, brands can fulfill orders consistently and on time. This approach:

• Reduces cancellations and boosts positive customer experiences
• Helps turn first-time buyers into loyal customers
• Keeps customer expectations high, especially during busy seasons

Conclusion: Inventory accuracy drives peak season success and customer loyalty

In the end, inventory accuracy isn’t just a back-end detail; it’s a powerful tool for building customer trust, meeting demand, and avoiding costly errors. With peak season upon us, accurate, real-time inventory data can help retailers deliver on promises, keep customers happy, and make the most of every sale. As Michael Schertz’s insights show, investing in inventory accuracy now is key to a smooth and successful holiday season.

Getting inventory right can seem challenging, but the payoff in terms of customer satisfaction and operational efficiency makes it well worth the effort. By using real-time, accurate data, retailers can overcome peak season challenges and set themselves up for long-term success.