U.S. retailers embrace outsourced automation to fix inventory gaps
NEW YORK, UNITED STATES — Inventory inaccuracies are increasingly straining relationships between United States retailers and the brands they carry. Still, a growing number of grocers and department stores are turning to outsourced automation to regain control, according to a report from Supermarket News.
A new study suggests robotics and managed automation could be the solution retailers need to rebuild trust and improve shelf performance.
Inventory errors strain retailer-brand trust
The report, “The Shelf Intelligence Report: Rebuilding Retail Relationships Through Automation,” was conducted by IHL Group in partnership with Brain Corp and surveyed executives from over 200 large and fast-growing retailers.
It found that inventory errors—commonly referred to as “inventory distortion”—are fueling tension across the retail supply chain.
According to the study, 67% of retailers reported regular relationship challenges with consumer brands due to inaccurate inventory data, while 47% said these inaccuracies led to reduced engagement with their brand partners.
Larger retailers, those with annual revenues above $5 billion, were especially likely to cite damaged brand relationships as a result of inventory issues.
Fewer than one in four retailers achieve at least 80% accuracy in key measures such as on-shelf availability, planogram compliance, and promotional execution.
Half of the respondents reported lost sales, and nearly as many noted customer dissatisfaction stemming from poor inventory execution.
Greg Buzek, president of IHL Group, stated that the problem extends beyond day-to-day operations. “Many retailers still lack a consistent view of on-shelf conditions,” he said.
“That visibility gap undermines confidence across the value chain, including the trust consumer brands place in retail partners,” he added.
New opportunities for outsourcing providers
The study highlighted growing interest in robotics as a way to tackle these challenges. Approximately 72% of surveyed retailers stated that they are ready to deploy in-store robots, with 60% planning to do so by 2027.
Notably, two-thirds of retailers prefer managed automation models that provide data services without requiring them to own or operate the technology directly.
David Pinn, CEO of Brain Corp, explained the trend: “Retailers are eager to improve inventory accuracy and shelf execution but prefer models that do not require them to maintain the technology.”
Robotics ranked highest among technologies identified to improve inventory accuracy, surpassing handheld RFID scanners, fixed cameras, and barcode systems.
For the outsourcing industry, this shift signals new growth opportunities. Managed automation enables retailers to leverage advanced robotics while relying on specialized providers to maintain and operate the systems.
This model not only improves operational efficiency but also opens the door for outsourcing firms to play a central role in redefining how retail inventory and store conditions are monitored in the years ahead.
