Omni Talk Retail
Episode: Confessions of Supply Chain Executives | The Brutal Truth About Retail Out-of-Stocks
Release Date: November 24, 2025

Episode Overview

In this deep-dive episode, host Chris Walton sits down with supply chain veterans Richard Stewart (EVP, Product & Industry Strategy, Infios) and Eugene Amagood (Chief Innovation Officer, Infios) for a forensic exploration of retail out-of-stock (OOS) issues. Together, they unravel the multifaceted, persistent nature of OOS problems, assess the interplay of technology, systems, and human factors, and offer a candid framework for diagnosing and tackling inventory shortfalls. The conversation is brutally honest, filled with real-world anecdotes, and dispels the myth of a silver-bullet technology fix.

Key Discussion Points & Insights

1. The Evolving Nature of Out-of-Stocks

• Out-of-Stocks Aren't "Solved"—They've Changed Shape
  • OOS rates (8–10%) remain stubbornly high despite billions in tech investment.
  • Then vs. Now: 20 years ago, the problem was mostly supply constraints and replenishment faults; today it's about data and systemic connectivity failures.
  • "It’s different. Consumers have changed, markets have changed, technology has changed… We're starting to see the weak points now exist at the seams." – Richard Stewart [02:29]
• It’s Not a Single Culprit
  • Executives often seek “the cause,” but usually, OOS is death by a thousand cuts, rarely the fault of one party or system. Patterns must be identified and systems trained to self-correct.
  • "Most leaders...are going to hope that it's one culprit, but it never is." – Richard Stewart [04:11]

2. Diagnosing OOS Across the Shopper Journey

a. Demand Forecasting & Planning

• Forecasts Must Be Living, Not Static
  • Leading retailers use real-time inputs—orders, web analytics, social trends—to refine forecasts.
  • "If you don’t have that, you’re not really forecasting demand. You’re kind of forecasting yesterday’s news." – Richard Stewart [07:19]
• AI & Machine Learning: Adoption & Barriers
  • ML has aided demand forecasting for over a decade, but adoption is uneven. Large retailers deploy ML tools; mid-tier retailers are still entrenched in spreadsheets.
  • "I think very high percentage is still doing it using spreadsheets...That’s where the massive opportunity is." – Eugene Amagood [10:49]

b. Supplier Coordination & Inbound Logistics

• Inbound Logistics Is Frequently Overlooked
  • Most issues are not supplier "failures" but breakdowns in real-time coordination—manual processes (emails, spreadsheets) breed delays.
  • "If you’re managing it that way, you’re kind of setting yourself up for failure because you’re already going to be a couple of days behind reality." – Richard Stewart [12:41]
• Phantom Inventory & the Yard Problem
  • Inventory “in the system” but physically unprocessed creates inconsistencies; this is common, especially in mid-tier retailers.
  • Example: Inventory shows as received while still on the truck or in the yard. [14:07]

c. Warehouse Execution & Channel Prioritization

• System Lags = Invisible Inventory
  • Warehouses may delay posting receipts to “game” SLAs or due to system configuration, creating digital invisibility.
  • "The inventory...it is physically there. It's just kind of digitally invisible." – Richard Stewart [16:38]
• Prioritization Across Channels
  • The complexity of omnichannel (B2B, DTC, TikTok surges) makes priority allocation and system visibility critical.

d. Store-Level Challenges & Phantom Inventory

• Store Inventory is the Wild West
  • Accuracy issues stem from customers’ unpredictable actions, poor POS connectivity, and shopping behaviors (e.g., grabbing items from pick carts).
  • "In the warehouse, accuracy is somewhat decent. In the store...that’s a different nightmare altogether." – Eugene Amagood [18:28]
• Technology Has Improved Accuracy
  • Store inventory accuracy has improved, but phantom inventory (system believes it’s there, but not physically so) remains challenging.

e. System Integration & the "Brain"

• Stack Complexity: OMS, WMS, TMS
  • Integration failures (not any single system) frequently cause or exacerbate OOS.
  • "What creates the out of stock is when [systems] are not talking to each other." – Richard Stewart [29:19]
• Modern vs. Legacy Is the Wrong Debate
  • Siloed systems—regardless of modernity—are the root issue. Vendors have made systems too complex to configure and understand.
  • "A legacy system only becomes a legacy system because of the way that you’re using it." – Richard Stewart [30:25]

3. Dealing with External Disruptions

• Disruptions (Ports, Disasters, Demand Surges) Are The New Normal
  • Can’t be prevented—must be predicted and rapidly adapted to.
  • "Modern day supply chain person has to start thinking that disruptions are simply the new norm and quit worrying about when they're going to happen." – Richard Stewart [34:52]
• Demand Surges & System Scalability
  • Viral moments (e.g., TikTok) create unforeseen strain; true scalability and auto-scaling are often hampered by fragile system bottlenecks.

4. Ownership, Accountability, and Culture

• No One Owns OOS—That’s the Problem
  • OOS crosses functions; isolated ownership fails. Success requires cross-functional, top-down mandates and aligned incentives.
  • "If you assign a single person to own out of stocks, they’re only going to get worse." – Richard Stewart [39:28]

5. Technology as Enabler, Not Panacea

• Tech Isn’t Enough
  • Coordination, process alignment, and people are as important. Tech is the tool—not the solution.
  • "Technology is probably the easiest part...People and processes is where the heavy lifting is." – Eugene Amagood [40:43]
• The Case for a Centralized “Brain”
  • The guests advocate for a single AI-driven engine coordinating OMS, WMS, and TMS—serving as the centralized “brain” to standardize and optimize inventory actions.
  • "You centralize it as a one brain, one engine." – Eugene Amagood [43:30]

Notable Quotes & Memorable Moments

• "[OOS] It’s different. Consumers have changed, markets have changed, technology has changed…The weak points now exist at the seams." – Richard Stewart [02:29]
• "Most leaders... hope that it's one culprit, but it never is." – Richard Stewart [04:11]
• "You’re not really forecasting demand. You’re kind of forecasting yesterday’s news." – Richard Stewart [07:19]
• "You may come up with this cool algorithm... but again, if you don’t have these other steps, you don’t get all the benefits out of it." – Eugene Amagood [09:21]
• "In the warehouse, accuracy is somewhat decent. In the store... that’s a different nightmare altogether." – Eugene Amagood [18:28]
• "What creates the out of stock is when they’re not talking to each other." – Richard Stewart [29:19]
• "A legacy system only becomes a legacy system because of the way that you’re using it." – Richard Stewart [30:25]
• "Perfection isn’t the goal. What you’re trying to do is just make yourself resilient." – Richard Stewart [47:22]
• "Start with one problem...You get the small win and then you move on to the next, to the next, to the next." – Eugene Amagood [48:58]

Important Segment Timestamps

• [00:00–03:23] — Introduction: Setting the stage for OOS challenges
• [03:23–06:10] — Complexity and evolving causes of OOS
• [07:14–11:47] — Forecasting failures & data/analytics adoption
• [12:21–16:17] — Supplier issues, inbound logistics, and warehouse “invisibility”
• [16:38–25:06] — Warehouse & channel priorities, phantom inventory
• [25:37–33:26] — System integration, legacy vs. modern debate
• [34:32–37:50] — External shocks, scalability, adapting to demand spikes
• [37:50–41:00] — Who owns OOS? The need for cross-functionality
• [41:05–45:28] — The role and limits of AI, configuring a central “brain”
• [45:28–46:47] — Organizational readiness & human factors
• [47:22–51:12] — Final "confessions": uncomfortable truths and expert takeaways

Actionable Takeaways

• OOS issues are multifaceted and not solved by a single system or team; success comes from holistic system connectivity and human alignment.
• Prioritize establishing a centralized “inventory brain” – an AI-enabled layer for orchestration across all systems.
• Don’t chase perfection—aim for resilience, adaptability, and incremental wins.
• Embrace purposeful innovation: tie tech initiatives to clear business value and use cases, not trends.
• Start small: Solve the most painful OOS issues first and scale up, rather than attempting sweeping system overhauls.

Final Confessions

• Richard Stewart: "Out of stocks are never going to go away… Perfection isn’t the goal—resilience and adaptability are." [47:22]
• Eugene Amagood: "Start small. Don’t attempt to solve everything at once. Secure small wins and expand systematically." [48:58]

For Listeners Who Want More

• Contact Eugene: eugenefields.com, LinkedIn, or any channel—"This is the one topic that I can stay up all night and just talk about..." [51:52]
• Contact Richard: richard@infios.com or via LinkedIn [52:18]

Summary Tone: Insightful, candid, technical, and data-driven – all delivered with a sense of humility, practicality, and deep industry experience.
Who Should Listen: Retail executives, supply chain professionals, IT leaders, and anyone seeking to understand or address retail out-of-stock challenges.