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Inventory management practices at a big-box retailer: a case study

Haya Esrar (Ted Rogers School of Management, Toronto Metropolitan University, Toronto, Canada)
Hossein Zolfaghariania (Ted Rogers School of Management, Toronto Metropolitan University, Toronto, Canada)
Hong Yu (Ted Rogers School of Management, Toronto Metropolitan University, Toronto, Canada)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 14 June 2022

Issue publication date: 24 August 2023

1387

Abstract

Purpose

Managing inventory continues to be a growing area of concern for many retailers due to the multitude of issues that arise from either an excess or shortage of inventory. This study aims to understand how a large-scale retail chain can improve its handling of excess seasonal inventory using three common strategies: information sharing, visibility, and collaboration.

Design/methodology/approach

This study has been designed utilizing a case study method focusing on one retail chain at three key levels: strategic (head office), warehouses, and retail stores. The data have been collected by conducting semi-structured interviews with senior-level employees at each of the three levels and employing a thematic analysis to examine the major themes.

Findings

The results show how three common strategies are being practiced by this retailer and how utilizing these strategies aids the retailer in improving its performance in regard to seasonal inventory. Among our research findings, some challenges were discovered in implementing the strategies, most notably: human errors, advanced forecasting deficiencies, and the handling of return merchandise authorizations.

Originality/value

This research takes a case study approach and focuses on one big-box retailer. The authors chose to study three levels (head office, warehouses, and retail stores) to gain a deeper understanding of the functions and processes of each level, and to understand the working relationships between them. Through the collection of primary data in a Canadian context, this study contributes to the literature by investigating supply chain strategies for managing inventory. The Canadian context is especially interesting due to the multi-cultural demographics of the country.

Keywords

Citation

Esrar, H., Zolfaghariania, H. and Yu, H. (2023), "Inventory management practices at a big-box retailer: a case study", Benchmarking: An International Journal, Vol. 30 No. 7, pp. 2458-2485. https://doi.org/10.1108/BIJ-11-2021-0716

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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