A retail manager checks the system and sees 50 units in stock. A customer places an order. The warehouse team searches for the product, only to discover the items aren't where the system says they are. Sound familiar? According to recent research, 24 percent of retail managers encounter this exact scenario at least once a day, while 63 percent run into it at least once a week.
This disconnect between systems and reality isn't a technology problem. It's a workflow problem. The approval chains are too slow. The handoffs between teams are broken. The visibility between stores and warehouses is fragmented. And the people who need to make decisions are operating on outdated information.
The financial stakes are enormous. Globally, inventory distortion, which includes shrinkage, stockouts, and overstock, costs businesses an estimated $1.6 trillion annually. For enterprise retailers managing complex multi-location operations, even small improvements in retail inventory and warehouse workflow management can translate into millions in recovered revenue.
Enterprise Resource Planning systems and Warehouse Management Systems are powerful tools. They track inventory levels, manage orders, and coordinate logistics. But they weren't designed to handle the human side of inventory management: the approvals, the exceptions, the cross-departmental handoffs, and the real-time decisions that keep products flowing from suppliers to customers.
This is where enterprise retail inventory management falls apart at scale.
Here's a sobering statistic: only 9 percent of businesses achieve full visibility into their inventory operations. Meanwhile, 63 percent still struggle with limited visibility, leading to inefficiencies and inaccuracies that compound across the supply chain.
The problem isn't that ERP systems lack data. They're swimming in it. The problem is that the data lives in silos, approvals happen in email, exceptions get handled through phone calls, and by the time decisions make their way through the organizational hierarchy, the situation on the ground has already changed.
Consider what happens when a warehouse receives a shipment that doesn't match the purchase order. The ERP system flags the discrepancy. But resolving it requires coordination between receiving teams, procurement, the supplier, and possibly finance. Without a structured workflow to route the issue, assign accountability, and track resolution, that shipment sits in limbo while store shelves go empty.
Despite decades of investment in enterprise software, 67.4 percent of inventory managers still use Microsoft Excel for inventory management. Among late majority adopters, that number climbs to 75 percent.
Why do spreadsheets persist? Because they're flexible. When the ERP system can't handle a specific approval workflow, when the WMS doesn't support a particular exception process, when teams need to coordinate across systems that don't talk to each other, spreadsheets become the default solution.
But spreadsheets create their own problems. They lack real-time updates. They're prone to human error. They don't enforce accountability or track handoffs. And when something goes wrong, there's no audit trail to understand what happened or why.
The result is a shadow operation running alongside official systems, where critical inventory decisions happen in email threads and shared documents that no one can fully track or trust.
The challenges intensify during peak periods. Recent research shows that 76 percent of store managers have seen an increase in stockouts or empty shelves, and nearly six in ten (59 percent) say it's become harder to keep stock replenished.
These aren't technology failures. They're workflow failures. The WMS knows what inventory should be where. But the processes for moving inventory, resolving discrepancies, handling exceptions, and coordinating between stores and distribution centers aren't keeping pace with the speed of modern retail.
When 51 percent of store managers have reduced their workforce in the last six months, and 36 percent have skipped or delayed daily store tasks because they lack the workers to complete them, the need for streamlined workflows becomes critical. Every manual handoff, every approval delay, every process that requires hunting down information becomes a bottleneck that slows the entire operation.
When inventory and warehouse operations don't flow smoothly, the costs ripple across the entire business. These costs are often invisible in traditional reporting but devastating to the bottom line.
Here's a number that should concern every retail executive: 69 percent of online shoppers will abandon their purchase and shop with a competitor if their desired item is out of stock. Globally, stockouts are responsible for nearly $1 trillion in missed sales each year across the retail sector.
Stockouts don't happen because retailers don't have inventory systems. They happen because the workflows connecting those systems to reality are broken. The replenishment request didn't get approved in time. The transfer between locations got stuck in someone's inbox. The exception that flagged a potential stockout wasn't routed to anyone who could act on it.
The average U.S. retail business has an inventory accuracy of only 63-66 percent. This means that for roughly one-third of their inventory, what the system says and what actually exists don't match.
This inaccuracy cascades through every decision the business makes. Demand forecasting relies on data that's wrong. Replenishment orders are based on phantom inventory. Store associates waste time looking for products that aren't there, and customers leave frustrated when items shown as "in stock" can't be found.
Companies that achieve inventory accuracy levels of 98 percent or higher see a 15 percent reduction in carrying costs. But getting there requires more than better technology. It requires workflows that catch and correct discrepancies before they compound.
In the age of same-day delivery expectations, fulfillment speed is a competitive weapon. Companies with optimized inventory management systems see a 30 percent improvement in order fulfillment rates. Well-managed inventory systems reduce fulfillment times by 23 percent, leading to faster delivery and better customer satisfaction.
But these improvements don't come from better ERP modules. They come from eliminating the delays between knowing something needs to happen and making it happen. Every approval that requires chasing down a manager, every exception that needs manual resolution, every handoff that gets dropped is time added to the fulfillment cycle.
If the problem is so clear, why hasn't it been solved? Because the traditional approaches to improving inventory and warehouse operations attack the wrong target.
When inventory operations struggle, the instinct is often to upgrade or replace the ERP system. But ERP implementations are notoriously difficult. Research shows that 73 percent of ERP implementations experience significant challenges, with inadequate integration with existing warehouse management systems cited as a common failure point.
Even successful ERP implementations take months or years to complete. During that time, the operational problems persisted. And when the new system finally goes live, it often recreates the same workflow gaps that existed before, just with different technology underneath.
The fundamental issue is that ERP systems are designed for transactions and records, not for coordinating the human decisions and handoffs that happen between transactions.
Warehouse Management Systems face similar limitations. While they excel at optimizing picking routes and tracking inventory locations, they struggle to coordinate with the broader business processes that surround warehouse operations.
Legacy systems often lack the APIs or data standards necessary for seamless integration, requiring custom development work that increases costs and implementation timelines. And even when integration succeeds technically, it rarely addresses the workflow gaps that exist between systems.
According to research, 72 percent of retailers intend to transform their supply chain operations using real-time visibility through automation, sensors, and analytics. But visibility alone doesn't solve the problem. You also need workflows that can act on what you see.
Supply chain and inventory management face a persistent talent shortage. 90 percent of supply chain leaders feel their companies lack the necessary talent and skills to achieve digitization goals. Warehouse operations specifically are seeing a shortage of 430,000 positions across the United States in 2024.
In this environment, asking teams to manage complex, manual processes while also driving transformation initiatives is unrealistic. The solution needs to reduce the burden on existing teams, not add to it.
The organizations successfully addressing retail inventory workflows have discovered something important: you don't need to replace your ERP or WMS systems. You need to fill the gaps between them with flexible, people-driven workflows.
This is where low-code and no-code workflow platforms come in. They sit on top of existing systems, connecting the human processes that ERP and WMS can't handle while preserving the investments you've already made.
Consider a common scenario: a store needs an emergency inventory transfer from another location or the distribution center. In many organizations, this requires finding the right person to approve the request, waiting for them to review it, and then coordinating the transfer itself.
Automated workflows transform this process. The request routes automatically to the appropriate approver based on predefined rules. If the primary approver is unavailable, it escalates to a backup. The approver receives the request with all relevant context, including current inventory levels, sales velocity, and transfer costs, enabling a fast, informed decision. Once approved, the transfer is triggered automatically in the WMS.
The result? What used to take hours or days now takes minutes. And every step is documented for visibility and accountability.
Exceptions are where inventory operations typically break down. A shipment arrives damaged. A count reveals a discrepancy. A product recall requires immediate action. These situations can't be handled by systems alone because they require judgment, coordination, and accountability.
Workflow automation provides the structure to handle exceptions consistently. When an exception occurs, it's automatically routed to the right person with the information they need. Response deadlines are enforced. Escalations happen automatically when needed. And management has visibility into exception resolution across the entire operation.
Companies that automate their workflows experience a 20-30 percent reduction in operational costs. For retail inventory operations specifically, automated inventory management reduces stockouts by 80 percent by ensuring that the processes surrounding inventory decisions execute consistently and quickly.
One of the biggest challenges in retail inventory management is coordinating between stores and distribution centers. They operate on different systems, different schedules, and often different priorities.
Workflow platforms create a common process layer that spans locations. A store's request for inventory flows to the warehouse through the same structured process regardless of which store originates it. The warehouse's response flows back through the same channel. Everyone operates from the same playbook, with the same visibility and the same accountability.
This consistency is essential for enterprise retail inventory management. Without it, each location develops its own processes, creating variations that make enterprise-wide optimization impossible.
Transforming warehouse process automation retail operations requires a systematic approach that builds on existing investments rather than replacing them.
Not every process needs to be automated immediately. Start with the workflows that have the biggest impact on operations: inventory transfers, exception handling, replenishment approvals, and cross-departmental handoffs.
These high-impact workflows share common characteristics. They involve multiple people or departments. They require approvals or decisions. They happen frequently enough that manual handling creates a significant burden. And when they break down, the business feels the impact.
By starting here, organizations can demonstrate value quickly while building the foundation for broader transformation.
The goal isn't to replace ERP or WMS systems. It's to connect them through workflows that handle what they can't. This approach preserves existing investments while addressing the gaps that cause operational problems.
Modern workflow platforms integrate with existing systems through APIs and standard connectors. They can read inventory data from ERP systems, trigger actions in WMS platforms, and coordinate with other business systems like procurement and finance. This integration happens at the workflow level, meaning the underlying systems continue to operate as they always have.
The result is faster time to value and lower risk than traditional system replacements.
The organizations that succeed with workflow automation empower the people closest to operations to participate in process design. Store managers understand the challenges of inventory replenishment. Warehouse supervisors know where handoffs break down. Frontline employees see the exceptions that cause daily friction.
Low-code platforms make this participation possible by removing the need for traditional software development. Business users can build and modify workflows without waiting for IT resources, enabling rapid iteration based on operational reality.
Gartner predicts that 70 percent of new applications developed by organizations will use low-code or no-code technologies by 2025. For retail inventory workflows specifically, this means the people who understand the problems can participate directly in building solutions.
For CIOs, CTOs, and operations executives looking to transform retail inventory and warehouse workflow management, a clear roadmap helps ensure success.
Before automating anything, document how workflows actually happen today, not how they're supposed to happen. Follow an inventory transfer from request to completion. Track an exception from occurrence to resolution. Identify where approvals stall, where handoffs drop, and where visibility breaks down.
This mapping often reveals that the biggest problems aren't in the ERP or WMS systems. They're in the email threads, spreadsheets, and informal processes that surround them.
Select two or three workflows that, if improved, would have immediate operational impact. Common starting points include inventory transfer requests between locations, exception and discrepancy resolution, replenishment approval workflows, and vendor coordination for receiving.
Focus on workflows where current processes are clearly manual, slow, or unreliable. These provide the clearest before-and-after comparison and build organizational confidence for broader transformation.
Using a low-code workflow platform, build automated versions of priority workflows. Start simple. The goal is to get processes running in a structured way, not to achieve perfection immediately.
Once workflows are live, gather feedback from users. What's working? What needs adjustment? Where are the remaining friction points? This feedback drives iteration that makes workflows increasingly effective.
With initial workflows proven, expand to additional processes. Each new workflow builds on lessons learned and existing integrations, accelerating implementation.
As workflows accumulate, look for optimization opportunities. Where can processes be further streamlined? What data patterns suggest systemic issues? How can workflows be adjusted to prevent problems rather than just responding to them?
Kissflow's low-code platform enables enterprise retailers to transform their inventory and warehouse operations without rebuilding their ERP or WMS systems.
With Kissflow, operations teams can build custom workflows that handle the approvals, exceptions, and handoffs that fall between existing systems. Inventory transfer requests route automatically to appropriate approvers with full context. Discrepancy resolution follows consistent processes with built-in accountability. Cross-departmental coordination happens through structured workflows rather than scattered email threads.
Kissflow integrates with existing ERP and WMS platforms, reading data and triggering actions without disrupting current operations. Store managers and warehouse supervisors can participate in workflow design through the low-code interface, ensuring that processes reflect operational reality. Real-time dashboards give executives visibility into workflow performance across all locations.
The platform's flexibility means workflows can evolve as the business changes. When a new exception type emerges, the workflow can be updated in hours rather than months. When organizational structures shift, approval chains can be adjusted without IT projects. This agility is essential for retailers operating in a constantly changing environment.
Kissflow’s no-code platform capabilities allow retail teams to automate inventory processes without technical dependency. Business users can adapt workflows as demand changes.
Spreadsheet-based inventory management quietly erodes margins at scale. A low-code retail inventory management platform replaces Excel with real-time, governed workflows.
Related Topics:
Why Retail Store Operations Break At Scale And How Enterprise Retailers Fix It Without Rebuilding It
The Enterprise Retail Compliance Crisis: Why Multi-Location Retailers Can't Keep Up With Audits
Why Enterprise Retail Back-Office Operations Collapse Under Multi-Location Complexity