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Inventory Data-Readiness Assessment

Technical Note · Data & Analytics · 19 February 2026

Initiative: Inventory Optimisation Author: P. Sharma

To: Emma Rodriguez (Managing Director), David Chen (CFO), Marcus Kim (CIO)
From: Dr. Priya Sharma, Head of Data & Analytics

Now that funding is approved, this note gives my honest read on data readiness. I am confident the value is real, but the scoping numbers underestimate the data-quality and legacy-integration effort. I want that on the record before we commit to a timeline.

Where the data lives

SourceSystemState
Online sales & stockShopify PlusClean, API-accessible, near real-time
In-store salesLegacy POS (~12 yrs)Nightly batch export, inconsistent SKUs
Stock-on-hand by storeLegacy inventory system (~14 yrs)Manual adjustments, ~7% variance vs counts
Supplier lead timesSpreadsheets / emailUnstructured, not systematised

The core problem: siloed and inconsistent

Online and store data do not share a single product master. The same item can carry different SKUs across Shopify, the POS, and the inventory system. We estimate ~22% of SKUs need mapping or cleansing before they are usable for forecasting. A forecast is only as good as the stock-on-hand figure it starts from, and store-level accuracy currently sits around 93% against physical counts.

Risk: The funded plan treats integration as a connector exercise. In reality it is a data-quality program (product-master reconciliation, SKU mapping, and trustworthy stock-on-hand) that must largely precede modelling. This is the most underestimated part of the budget.

My recommendation: start with one category

Rather than forecasting every store and channel at once, I propose a single-category pilot. Homewares is a strong candidate (fewer style variants than fashion, more stable demand). We prove the data pipeline and the forecast quality on a contained footprint, then scale.

Note: Realistic timeline to company-wide value is 9–12 months, not the 6 quoted in early planning. The pilot itself is ~3 months. I would rather set this expectation now than miss a date later.

Happy to walk through the SKU-mapping numbers with Marcus's team whenever suits.

Dr. Priya Sharma, Head of Data & Analytics

Fictional company. RetailFlow is a teaching scenario for Curtin University executive education, not a real business.