The future of retail - Inventory on demand?

  • Thread starter Ivan Seeking
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In summary: You are correct that Sears did this as well, but Sears catalog sales were always for items that were not stocked in the stores.
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Ivan Seeking
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While I have been purchasing goods online for a decade and have watched the evolution of the online industry from the beginning, there is a twist to the retail-online war for business that was news to me, at least. According to a person who should know [don't want to get anyone in trouble here] "Walmart Online" is not the same company as your local Walmart store. Many advertised products are only sold online now, with delivery at your nearest store for pickup, free of shipping charges. The online company simply uses the delivery system for the stores. I would imagine that the store then takes a nominal markup on each item sold. When the product is available for pickup, I get an email notificaiton.

This came to my attention when I tried to purchase a certain product after doing my typical online search. In the past, while a company like Walmart might not always have stock on a certain item, if it was advertised online, it normally was stocked at most major outlets.

Note that if I want the item deliverd to my home, I pay for shipping

This seems to me to be an entirely new concept in retail marketing - a hybrid of online sales with classic storefront delivery. The only thing that I can think of that was similar to this systems is the old Sears catalog-sales stores. But those stores were often delivery points only that carried no inventory at all.
 
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Amazon.com does this as well oddly enough. It sells items from OTHER companies on their site as well. Of course, they don't have a local amazon.com store down the street and they actually say the company you're purchasing from.
 
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Pengwuino said:
Amazon.com does this as well oddly enough. It sells items from OTHER companies on their site as well. Of course, they don't have a local amazon.com store down the street and they actually say the company you're purchasing from.

That isn't quite the same though. Amazon is online only. Walmart is effectivly stocking the local stores on a per-order basis.
 

1. What is inventory on demand?

Inventory on demand is a retail strategy where products are only ordered and stocked when a customer places an order. This allows retailers to minimize their inventory costs and maximize their profits.

2. How does inventory on demand work?

When a customer places an order, the retailer will then order the product from their supplier or manufacturer. This means that the product is not kept in stock, but is only ordered and shipped when there is a demand for it. This can be done through online platforms, where customers can place orders directly, or through in-store kiosks or digital displays.

3. What are the benefits of inventory on demand?

Inventory on demand has several benefits for both retailers and customers. It allows retailers to reduce their inventory costs, as they only purchase products when there is a demand for them. This also helps to prevent overstocking and reduces the risk of products becoming obsolete. For customers, this means that they have access to a wider range of products, as retailers can offer more options without worrying about managing excess inventory.

4. Are there any challenges with implementing inventory on demand?

While inventory on demand can bring many benefits, there are also some challenges that retailers may face. One of the main challenges is ensuring that the supply chain and fulfillment processes are efficient and can keep up with the demand. It also requires strong communication and coordination between retailers and their suppliers to ensure that products are delivered in a timely manner.

5. How will inventory on demand impact the future of retail?

Inventory on demand is expected to play a significant role in the future of retail. As customers continue to demand more options and faster delivery times, inventory on demand allows retailers to stay competitive and meet these expectations. It also allows for more sustainable practices, as retailers can reduce waste and overproduction. Additionally, inventory on demand can help retailers adapt to changing market trends and customer preferences more quickly.

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