Part 7/11:

The core metric is the reduction of lost sales due to stockouts, which is inherently tied to forecast accuracy. Achieving approximately 80% precision in alerts translates to significant sales recovery and enhanced customer satisfaction.

The metrics also monitor revenue impact, with the system being able to identify high-value, high-risk items for prioritized restocking.

Tackling Phantom Inventory

Phantom inventory presents unique challenges because it involves unseen discrepancies:

• Theft or misplacement

• Inventory not recorded accurately

• System vs. actual stock mismatch

Kinu's approach involves:

• Utilizing broker feedback on stock discrepancies

• Analyzing patterns where no sales occur despite apparent stock presence