Logistics experts know missteps at any point along the supply chain can lead to inefficiencies and lost sales. A recent study by research firm IHL Group quantifies the toll overstocks, out-of-stocks, and returns exact on retailers around the world: $1.75 trillion annually, or about 12 percent of the $14.5 trillion global retail economy. OrderDynamics, a provider of prescriptive analytics software, commissioned the study. The researchers use the term "ghost economy" to describe "activities occurring within the enterprise you don't have a way to see and resolve, yet are eroding the P&L and reducing the enterprise's value," says Kevin Sterneckert, chief marketing officer of OrderDynamics.
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