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In spite of making substantial investments in information technology planning systems, retailers are struggling with two execution problems - inventory record inaccuracy and misplaced stock keeping units (SKU''s) - that are hurting their performance and ability to satisfy customers. At one leading retailer, 65% of inventory records were inaccurate (ie: recorded inventory levels did not reflect actual inventory levels). Misplaced SKU''s at another leading retailer prevented one in six customers who requested help from a sales associate from finding the products that were available in a store. These execution problems reduce profits by more than 10%. Moreover, performance along these two dimensions of execution varies substantially among stores within the same chain that use identical information technology. By examining the systematic differences that exist among stores, this article identifies the drivers of inventory record inaccuracy and misplaced SKU''s and recommends steps retailers can take to improve operational execution in their chains.