With online shopping gaining momentum over the past few years, AI is also taking over the spotlight in the retail industry’s digital enterprises. There are several areas in which AI has become an inevitable significant part of the process for retailers.    

  

Retail shop owners strive hard to ensure their customers’ shopping experience is pleasant and fulfilling.  What we don’t always see is large amount of laborious tasks running in the backend: warehouse management, logistics, supply chain, product arrangement, product trackingand more. 

For most retailers, Artificial Intelligence has proven to be an advantage in enhancing supply chain operations and inventory management and increasing sales in this digital era.     

  

INVENTORY MANAGEMENT  

Retailers across the globe have seen detailed and organized inventory management when AI has been at the center of their management system.  AI works to improve upstream and downstream planning for raw materials providers, logistics companies, manufacturers, and other stakeholders involved in inventory management.  

  • Using machine learning to amalgamate complex data to better understand the ratio of product demand to quantity of stock helps balance inventory and enhance the sales strategies. 
  • The AI-aided steps of data extraction from huge inventory reports help companies track their commodities better and support retailers in making better strategic business decisions. 

  

EFFECTIVE SUPPLY CHAIN MANAGEMENT   

Using AI, every aspect of the retail supply chain, including inventory, staffing, distribution and delivery, can be managed in real time by implementing artificial intelligence.   

  • AI supply chain can be utilized to calculate demand for a particular product by considering a history of sales, location, weather, trends, promotions, and other parameters.  AI could be connected to other systems to improve the planning of potential demand with supply, and product capacity adjustment. 
  • Expense estimation of both internal and external levels of supply chain is also possible with Artificial Intelligence. 
  • Negligence in this area leads to losses for retailers around the world by about $1.1 trillion every year. 

  

LOGISTICS

Logistics can be monitored using real-time AI tracking methodologies for vehicles and time stamps when it comes to delivery. This addresses a significant challenge by eliminating stock-outs and reducing the lead times to get products to customers. 

  • Automating trucks, ships, delivery robots, etc. will boost efficiency, allowing autonomous operation at certain levels of the supply chain. 
  • GPS tracking could be made possible with AI to make conclusions on current routes and provide improvements. 
  • From a bird’s eye view, AI can be used to map all the routes for company logistics.  
  • This ensures supplier deliveries are faster, more accurate, and more secure.  

  

Many retailers believe AI has the potential to transform the entire supply chain process. According to Statista: 

  • 49% of respondents expect that Artificial Intelligence will cut costs in the supply chain. 
  • 44% expect that AI will boost productivity. 
  • 43% are sure that AI will be a major factor in boosting revenue. 
  • 40% recognize the use of AI in retail decision-making as the main benefit of the technology. 

 

We can clearly see an augmented sales picture when AI and retail come together. At Trinus, we are excited to track and help companies up-their-game with AI and streamline their process for greater customer satisfaction.  

 

 

 

https://www.forbes.com/sites/forbestechcouncil/2020/08/21/seven-ways-artificial-intelligence-is-disrupting-the-retail-industry/?sh=cae5fd56ae31  
https://spd.group/artificial-intelligence/ai-for-retail/#:~:text=Artificial%20Intelligence%20and%20Machine%20Learning,will%20result%20in%20increased%20revenue  
https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/consumer-industrial-products/ca-deloitte-ai-consumer-pov-aoda-en.pdf