Drugstore giant CVS Corp. will install the Global Visibility and Inventory Control systems developed by Descartes Systems Group.
Descartes said that, over the past year, retail companies have faced increasingly competitive conditions with slowed consumer spending and overbuilding of retail stores. These conditions have forced retailers to search for ways to increase profitability by focusing on reducing major costs within their supply chains, including the cost of managing inventory, the firm said.
Descartes said CVS hopes to reduce inventory costs within its domestic supply chain by using Descartes' technology. In general, Descartes said its logistics systems could help reduce inventory costs by 5% to 15%, tracking and expediting costs by 20% to 80%, and costs from obsolete inventory by 40% to 60%.