Retail as we know it is broken. The traditional retail model is struggling to keep up with evolving consumer expectations, supply chain disruptions, and increasing demands for sustainability.

And many retailers are finding it challenging to provide a seamless omnichannel experience, manage inventory effectively, and adapt to new technological advancements. These issues have resulted in dissatisfied customers, significant financial losses, and a considerable environmental impact.

Traditional models are no longer sufficient to meet the demands of today’s consumers and the challenges posed by modern economic, social, and technological landscapes.

Roland Dzogan, CEO of YDISTRI, an innovative AI-optimized SaaS solution for retail inventory management, said consumers today have so much choice.

“This is the problem that the choice is too big,” he said, adding that this becomes a major issue for retailers in planning their inventory. Customers also expect a seamless integration of online and offline shopping experiences, which many traditional retailers struggle to provide, leading to dissatisfaction and lost sales.

“Consumers increasingly demand personalized shopping experiences. Retailers that fail to leverage data analytics and AI for customized recommendations are at a competitive disadvantage,” said Dzogan.

“The rise of e-commerce giants offering rapid delivery has set high expectations for speed and convenience, which traditional retailers must match to retain customers.

“YDISTRI leverages AI to provide retailers with insights that enable seamless omnichannel experiences and personalized shopping. This helps retailers meet the expectations of modern consumers who demand instant gratification and tailored recommendations, ultimately enhancing customer loyalty and satisfaction.”

YDISTRI, an innovative AI-optimized SaaS solution for retail inventory management, is redefining how retail chains address inventory challenges. It goes beyond forecasting to dramatically rebalance inventory across locations. By intelligently redistributing unsold inventory to real-time demand, YDISTRI empowers retailers to maximize revenue and minimize waste, going far beyond traditional forecasting methods.

Retailers worldwide are losing billions in unsold inventory but YDISTRI’s AI solution is turning this ‘deadstock’ into revenue by redistributing it based on real-time demand.

Unsold inventory, or “deadstock,” poses a massive financial drain on retailers, tying up capital in merchandise that may never sell. YDISTRI is the leader in solving this $637 billion global crisis, using cutting-edge AI to identify stagnant stock and automatically redistribute it to higher-demand locations before it goes to waste.

With YDISTRI, retailers can sell up to 90 per cent of what is deemed unsellable inventory within two months, realizing significant financial and operational benefits. YDISTRI provides innovative solutions that enable retailers to create sustainable, efficient, and customer-centric operations, ensuring they thrive in this new era: Retail 3.0.

Dzogan said inadequate inventory management leads to frequent out-of- stock situations, frustrating customers and driving them to competitors.

“Conversely, overstocking results in excess inventory that often goes unsold, leading to significant financial losses and increased waste. Retailers face a global crisis with $637 billion tied up in unsold inventory,” he said.

“Global supply chain challenges, exacerbated by recent events like the COVID-19 pandemic or the 2021 Suez Canal blockage incident, highlight the fragility of current retail systems. Retailers must adapt to more resilient and flexible supply chain models.”

He said YDISTRI’s real-time demand forecasting and inventory redistribution ensure that products are always available where they are most needed, reducing out-of-stock situations.

“By dynamically rebalancing inventory, YDISTRI helps retailers minimize overstock and reduce waste, converting what is typically unsellable inventory into profitable stock. Remarkably, up to 90 per cent of
redistributed deadstock is sold at full price, significantly boosting profitability,” added Dzogan.

“The retail industry is a significant contributor to environmental issues due to overproduction, excessive packaging, and unsold goods ending up in landfills. The Ellen MacArthur Foundation reports that the fashion industry alone is responsible for 92 million tons of waste annually.

“Increasingly, consumers prioritize sustainability and expect retailers to adopt eco-friendly practices. A survey by IBM found that nearly 70 per cent of consumers consider sustainability when making purchasing decisions.

There is also a growing need for retailers to embrace circular economy principles—recycling, reusing, and reducing waste—to mitigate their environmental footprint.”

He said many retailers, and some big ones, are going into bankruptcy because they haven’t solved this issue. The ones that are in financial trouble need to optimize their digital networks.

“YDISTRI represents the future of retail inventory management – an AI-optimized paradigm shift that finally aligns overstock with real demand to maximize revenue,” added Dzogan. “We are excited to bring this game-changing solution to retailers across North America and enable them to sell what others deem as unsellable inventory — at full price.”

YDISTRI has revolutionized inventory for clients in the US, Canada, Mexico, UK, EU, and Central Europe since 2019. By predicting trends and intelligently redistributing inventory, YDISTRI empowers retailers to increase sales, lower waste, and navigate today’s landscape.

Here are some of the key benefits for retailers of using YDISTRI ’s AI solution:

• Go Beyond Forecasting: Exceeds traditional forecasting methods to dynamically rebalance inventory based on real-time demand;
• Sell ‘Unsellable’ Inventory: Eliminate deadstock and slow-moving items by selling them at full price rather than resorting to write-offs or discounting;
• Boost On-Shelf Availability: Ensure consistent availability for hot products network-wide, even during promotions, without additional inventory investment by better utilizing current inventory;
• Expand Retail Footprint: Open new stores at dramatically lower costs without additional inventory investment by reallocating existing inventory;
• Minimize Working Capital: Improve inventory turnover and cash flow with optimized redistribution across retail networks; and
• Reduce Logistics Costs: Intelligently reassign stock to high-demand locations, significantly reducing logistics and transportation expenses.

YDISTRI is making a significant financial impact for retailers. On average:

• 90 per cent of products redistributed are sold within two months;
• 10 per cent (or higher) increase in net profit margin;
• 10X increase in inventory turnover of low-velocity inventory;
• 30 per cent improvement in working capital company-wide;
• Two to five per cent logistics costs – firmly in control versus 40-50 per cent markdowns;
• Up to 90 per cent of redistributed deadstock sold at full price; and
• increasing net profits up to 20 per cent.

YDISTRI uses data analysis to identify “phantom” merchandise that should be in stock but has truly gone missing. By continuously syncing the digital and physical worlds, YDISTRI eliminates inventory blind spots to reduce multi-billion-dollar shrinkage costs that many retailers simply accept as unavoidable losses.

(*Partner content. To work with Retail Insider, contact Craig Patterson at craig@retail-insider.com)