EM Cloud™ is the GaP Solutions cloud back-office system for Australian independent retailers. Its inventory management covers automated ordering with visible forecasting logic, purchase history, dump stock, expiry alerts, single-and-carton product handling, forward buying on supplier deals, live stocktakes and automatic supplier credit notes.
Too much stock ties up capital. Too little loses sales. Both problems have the same root cause — the number in the system not matching the number on the shelf.
That is not a small problem. An ECR Retail Loss study across seven European grocery and general merchandise retailers found 63% of audited grocery SKUs did not match system records, and that correcting those inaccuracies lifted sales by between 3.8% and 8.4%. For the products with the largest discrepancies, the sales lift exceeded 14%.
WHY INVENTORY ACCURACY IS THE WHOLE GAME
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63%
Of grocery SKUs did not match system records (ECR, 2020)
|
4–8%
Sales lift from correcting those inventory records
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43%
Of stockouts end in no sale for that store at all
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2.1%
IGA price gap to the major supermarkets (Metcash, FY26)
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Research cited here is third-party, not GaP’s own, and is dated and located in the Sources section. The stockout figures are from a global 2002 study, still the primary reference in the field. Verified August 2026.
The competitive context matters too. Australia’s independents run the largest store network in the country — around 1,335 IGA stores compared with roughly 1,115 Woolworths and 850 Coles — but hold about 7% of national grocery sales against Woolworths’ 38% and Coles’ 29%, according to the ACCC’s February 2025 Supermarkets Inquiry. Metcash reported an IGA price gap to the majors of 2.1% for FY26, with food sales excluding tobacco up 5.4%.
Independents are competing on a 2.1% price gap. That is won or lost on buying accuracy and waste, not on wishful thinking.
The upside is real and measurable. Jones Retail Group, running Auto-Order and Investment Buy across its stores, has saved several hundred thousand dollars over the past year — figures confirmed by Michael Tucker of Jones Retail Group, and detailed further down.
EM Cloud™ inventory features at a glance
| Feature | Problem it solves | Who it matters most to |
|---|---|---|
| Auto-Order | Orders written from habit rather than from sales data | Any store where ordering depends on who is rostered |
| Purchase History | No clear view of ordered versus received quantities | Stores with high supplier counts and frequent short deliveries |
| Dump Stock | Write-offs happening off-system, so losses are invisible | Fresh departments, and anyone managing recalls |
| Expiry monitoring | Date-sensitive stock found at write-off rather than markdown | Deli, bakery, butchery, seafood, dairy, chilled |
| Parent–child products | Selling singles but restocking by the carton | Liquor, convenience, general grocery |
| Investment Buy | Supplier deals missed, or taken at the wrong volume | Stores with storage capacity and steady demand lines |
| Live stocktakes | Counting requires closing the store or working overnight | Any store that trades long hours |
| On-the-spot credit notes | Delivery shortfalls never chased because raising a claim is slow | High-volume receiving operations |
1. Auto-Order, with the reasoning shown
Rather than static reorder points, Auto-Order analyses your sales data to work out how much stock a line actually needs. The distinguishing feature is not the forecast — it is that the forecast is visible.
- Transparent predictions. The system recommends a quantity and shows you why. When someone questions an order, the forecasting logic is there to look at rather than something to argue about.
- Adjustments you can make with your eyes open. Many stores find the first Auto-Order suggestion is lower than they are used to. That usually means the previous approach was over-ordering — capital sitting in a back room.
Transparency matters more than it sounds, because manual overrides are not free. A study of ordering behaviour across retail stores found managers advancing orders by a median of 0.59 days of excess inventory per SKU, amounting to roughly a 9.6% increase in inventory over what the automated system would have ordered. Overriding the system is sometimes right. Overriding it invisibly, every week, out of habit, is expensive.
Showing the logic is what makes the override a decision rather than a reflex.
2. Purchase History
A dedicated Purchase History tab, so what you ordered and what actually arrived sit next to each other rather than in different places.
- Discrepancies are visible instead of being discovered at stocktake
- Historical patterns across past orders inform better forecasting, and show which suppliers consistently short-deliver
3. Dump Stock
Every store removes unsellable stock — damage, recalls, discontinued lines. The question is whether it is recorded.
- Single-click removal straight from the product page, so recording it is faster than not recording it
- Dump Stock Report to track losses and surface recurring patterns — the same line appearing every week is a ranging or ordering problem wearing a write-off costume
This is where the inventory accuracy point bites hardest. Stock written off without being recorded is exactly how a system number and a shelf number come apart.
4. Expiry monitoring
Fresh and perishable lines need oversight that does not depend on someone remembering to walk the chiller.
- Automated alerts for stock approaching its date, early enough to mark down, rotate or donate rather than dump
- Fewer write-offs, and a fresh offer customers can rely on
Worth knowing that “use by” and “best before” carry different legal consequences — food past a use-by date cannot lawfully be sold, while best-before stock can be, provided it is still fit for consumption. Any markdown rule needs to treat them as two different things.
5. Parent–child product management
Selling a product in multiple formats — single bottles and twelve-packs — without maintaining two sets of numbers.
- Flexible selling units. Child items (singles) and parent items (cartons or packs) tracked together
- Accurate ordering. Sell singles, restock by the carton, and EM Cloud™ orders the correct quantity without anyone doing the arithmetic
6. Investment Buy
Investment Buy extends Auto-Order to supplier promotions. It weighs cost, current stock, auto-order cycles, sales history and upcoming deals, then places orders on user-defined logic set per store, department or sub-department.
- Timing. If the last day to order a special is 12 February, the purchase is scheduled for 12 February — not early, which costs you holding time, and not late, which costs you the deal.
- Sized to the site. Configurable across multiple locations, accounting for each store’s size and storage capacity.
- Reporting. Total savings, days since the last deal, best deal achieved, and current investment buy status — so the benefit is measured rather than assumed.
An honest note on forward buying. Buying ahead on a deal is not automatically profitable. Published research in the Journal of Marketing Research shows forward buying benefits the retailer only when holding costs sit below a threshold — and that competing retailers can both end up worse off than if neither had done it. The margin is real but bounded by holding cost, shelf life and the risk of distorting your own demand signal for the next cycle. That is precisely why the module needs to sit alongside visible forecasting logic and expiry alerts, rather than operating as a standalone deal-chaser.
What this looks like in a multi-store group
Jones Retail Group runs Auto-Order and Investment Buy across its stores — covering the Metcash warehouse, fresh, and direct suppliers alike. Michael Tucker of Jones Retail Group confirmed the following results to GaP Solutions in August 2026:
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Several hundred
thousand dollars Saved over the past year
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~1,000
pallets Of additional stock secured through Investment Buy
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Thousands
per week In ongoing value, with no added workload for the team
|
The detail worth noticing is the last one. The savings did not come from someone working harder at buying — the process runs in the background, which is the difference between a tool that finds you savings and a tool that gives you another job.
It also illustrates the point about buying discipline across a group. In a multi-store operation, ordering quality otherwise depends on who wrote the order at each site that day. Standardising it means head office sees one consistent picture rather than reconciling several.
Live stocktakes and automatic credit notes
Live stocktakes. EM Cloud™ supports stocktaking while the store is trading — no after-hours shutdown, no manual data entry marathon afterwards. Given how far system and shelf figures drift, being able to count more often without closing is the practical route to keeping records accurate rather than correcting them once a year.
On-the-spot credit notes. When receiving stock, a discrepancy between what was ordered and what arrived generates a supplier credit note automatically. Small shortfalls usually go unclaimed because raising the paperwork costs more attention than the claim is worth. Removing that friction is how the money actually gets recovered.
Working with your existing supplier files
EM Cloud™ integrates with host file and warehouse ordering for a range of Australian groups, including Metcash, ALM, SPAR, Foodland, Tasmanian Independent Retailers, New Sunrise and Foodworks, alongside IGA Online and IGA Rewards. Inventory management only works if it is connected to where you actually order from.
The number in the system
should be the number on the shelf.
Frequently Asked Questions
What is EM Cloud™ inventory management?
EM Cloud™ is the GaP Solutions cloud back-office system for Australian independent retailers. Its inventory management covers Auto-Order with visible forecasting logic, Purchase History for ordered-versus-received tracking, single-click Dump Stock with reporting, automated expiry alerts, parent–child handling for singles and cartons, an Investment Buy module for supplier deals, live stocktakes while trading, and automatic supplier credit notes on delivery discrepancies.
How does Auto-Order decide how much to order?
It analyses your sales data rather than relying on static reorder points, then recommends a quantity and shows the forecasting logic behind it. That transparency is deliberate — research on retail ordering behaviour found managers overriding automated suggestions carried roughly 9.6% more inventory than the system would have ordered. Seeing the reasoning turns an override into a decision rather than a habit.
Why is the first Auto-Order suggestion lower than what we normally order?
Usually because the previous approach was over-ordering. It is the most common reaction stores have on switching, and it generally reflects stock levels built up from habit rather than from demand. Over-ordering ties up capital, consumes storage and increases waste in date-sensitive lines — so a lower suggestion is often the system working rather than the system being wrong. The forecasting logic is visible so you can check it yourself.
Can you do a stocktake without closing the store?
Yes. EM Cloud™ supports live stocktakes while the store is fully operational, so there is no after-hours shutdown and no manual data entry afterwards. This matters because inventory records drift continuously — an ECR Retail Loss study found 63% of audited grocery SKUs did not match system records — and counting more often is more effective than counting once a year.
How does EM Cloud™ handle products sold as singles and cartons?
Through parent–child product management. Child items are the individual units you sell, parent items are the cartons or packs you restock by, and the two are tracked together. If you sell single bottles but order by the case, EM Cloud™ converts to the correct order quantity automatically so stock stays consistent.
What is Investment Buy and is forward buying always worth it?
Investment Buy extends Auto-Order to supplier promotions, weighing cost, stock on hand, auto-order cycles, sales history and upcoming deals to place orders on logic you define per store or department. It schedules the purchase for the optimal day rather than early or late. And no, forward buying is not always worth it — published research in the Journal of Marketing Research shows the benefit depends on holding costs sitting below a threshold, and that competing retailers can both end up worse off. The module reports total savings and deal status so the benefit is measured rather than assumed.
What results have retailers seen from Auto-Order and Investment Buy?
Michael Tucker of Jones Retail Group, which runs both across its stores covering the Metcash warehouse, fresh and direct suppliers, confirmed to GaP Solutions in August 2026 that the group had saved several hundred thousand dollars over the past year, secured around 1,000 pallets of additional stock through Investment Buy, and generates thousands of dollars a week in ongoing value — with no added workload for the team, because the process runs automatically in the background.
Does EM Cloud™ work with Metcash and other supplier host files?
Yes. EM Cloud™ integrates with host file and warehouse ordering for Metcash, ALM, SPAR, Foodland, Tasmanian Independent Retailers, New Sunrise and Foodworks, among others, along with IGA Online and IGA Rewards.
What happens when a delivery arrives short?
EM Cloud™ generates a supplier credit note automatically when there is a discrepancy between what was ordered and what was received. The point is removing friction — small shortfalls typically go unclaimed because the paperwork costs more attention than the claim is worth.
Sources
- ECR Retail Loss — Measuring the Sales Impact of Improving Inventory Records (2020; 7 European retailers, ~100 stores)
- ACCC — Supermarkets Inquiry Final Report (February 2025)
- Convenience & Impulse Retailing — Metcash FY26 result (June 2026)
- van Donselaar et al. — Ordering Behavior in Retail Stores and Implications for Automated Replenishment
- Desai, Koenigsberg & Purohit — Forward Buying by Retailers, Journal of Marketing Research (2010)
- Gruen, Corsten & Bharadwaj — Retail Out-of-Stocks: A Worldwide Examination of Causes, Rates and Consumer Responses, Grocery Manufacturers of America (2002). Global study; consumer-response figures cited above
- GaP Solutions — EM Integration
- Jones Retail Group results: confirmed by Michael Tucker, Jones Retail Group, in interview with GaP Solutions, August 2026
Find out what your stock levels should be
Book a demo and we’ll walk through Auto-Order on your own categories — including what the forecasting logic says your holdings should be, and where it differs from what you are ordering now.
BOOK A DEMOOr call 1300 722 289 · marketing@gapsolutions.com.au
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Sep 12, 2026, 8:55:39 PM