At market level, losses generated by inefficient inventory management can account for between 5% and 15% of a company's profit, while around 40% of small businesses either do not track inventory at all or still rely on manual systems.

Against a backdrop of changing consumer behaviour, product diversification, and competition, inventory management has become one of the key challenges for retailers and distributors. In recent years, companies have had to manage product portfolios while maintaining control over actual stock levels, delivery timelines and expiry dates, as well as product traceability.

"Retailers are under pressure. Customers expect immediate product availability, a wider variety of options, and fast delivery, while businesses must meet these expectations without building up inventory or losing sales due to stock shortages. For companies still relying on manual processes or incomplete data, these imbalances have a direct impact on profitability," said Călin Buciuta, Founder of Selectsoft.

According to Selectsoft, the most common challenges in the market include poor inventory visibility, stockouts, and overstocking. In an effort to respond quickly to demand, many businesses end up ordering higher volumes than actually needed, a challenge for industries such as fashion, pharmaceuticals and healthcare, technology, and grocery retail. Approximately 1 in 5 inventory records contains errors, indicating an inventory accuracy level of around 80%, while in physical stores this can drop to approximately 65%.

"Many of these issues can be prevented through automation and real-time access to inventory data. Companies using inventory management systems can reduce stockouts by as much as 50%, as inventory decisions are based on actual data rather than estimates," added Buciuta. To help reduce inventory errors, Selectsoft is developing an integrated ERP system that connects inventory management with sales, procurement, and supplier ordering processes.