Excess inventory languishing in warehouses, tying up millions of dollars in working capital are the problem pervading inventory management. It is a losing battle if organizations can't meet thresholds in service on time and in full. Enterprises spent millions on software to manage inventory and other links in the supply chain including ERP, CRM to planning and logistics tools. With these organizations are confronting with multiplying data that affect inventory management. But large organizations including in retail could apply the power of artificial intelligence to solve the riddles of inventory management.
AI assisted technology running on big data can optimize inventory at all levels in the demand chain. It cab even predict future buying behavior, and detect supply chain anomalies in a timely manner. Retailers will reach new levels of efficiency with the implementation of smart warehouses. AI assisted business processes should be a priority and strategic investment rather than an optional helping hand for retailers. Without heavily relying on advanced analytics it is nearly impossible to meet consumer demand and identify short term trends in a timely fashion. The new advancements allow retailers to predict consumer demand more accurately and allocate inventory to various locations with high placement accuracy. Being able to optimize inventory management can provide efficiency in inventory flow, by reducing overall costs from excessive inventory in unproductive locations and obsolete items. Lack of adaptability to AI automation is among the common factors that lead to the fall of major retailers.
Customers are heading into a retail store when they expect to find what they want immediately. Lack of the right stock in-store will ruin the customer experience. A smart system driven by analytics can ensure that shelves are properly stocked with the right products. Automated inventory management also allows inventory to be personalized. Retailers can use data to decide on the most relevant inventory for each store.
With trends constantly fluctuating and certain products evolving into a niche, managing inventory manually can be tricky. AI can help in this area with pinpointing demands, trends and many more. AI is allowing retailers to automate almost all the inventory process reducing time taken. This intelligence can ensure retailers with best business decisions and sustained success.