In this modern era, you can easily manage the inventory with the help of AI, however, the question arises as to what type of companies are using AI technology to manage their inventory.
In the past, most people managed their inventory of the store by themselves, however, as time passes now most businesses use AI technology to manage their inventory and can even able to predict the supply and demand of their products. By using AI in inventory management businesses decreased the cost which they have to spend on the management of their inventory and can even improve the sale of their products.
What is AI? And what are the benefits of using AI technology to manage inventory.
First of all, I will describe to you that what does AI exactly means.
AI is a technology that builds human-like intelligence with computers, and AI can make it possible to learn and analyze the data in large amounts.
AI has a technique called, “deep learning” which enables AI to experience and understand different patterns just as humans.
Even if a human does not enter data, AI will continue to learn itself, so high-quality AI can also be born.
AI technology allows businesses to used automation techniques in order to perform any task as it allows you to learn the work process.
How does it can be used?
Here are some examples of how can we use artificial intelligence to manage inventory.
Businesses should use AI technology to reduce the costs of inventory management.
That is why most of the businesses are nowadays adopting AI-based inventory optimization solutions to manage their inventory. A good AI-based Inventory optimization solution will manage the inventory of your business in a more systematic way.
Three cases of inventory management with artificial intelligence:
1. Seven and I Holdings
Seven & Eye Holdings Co., Ltd., which operates convenience stores and supermarkets, is undergoing an effort to improve the accuracy of inventory management by using AI technology.
Convenience store demand is influenced by various factors such as location, the weather of the day, and events held nearby. In addition, the customer needs to change flexibly.
The purpose of the company behind using artificial intelligence is to respond smoothly to the changes consisting of several factors.
Home improvement shop GooDay is promoting the use of artificial intelligence in order to solve the problem of over-purchases and associated price cuts.
When the expiration date is approaching overtime or the quality of the product started deteriorating, then the shop has no option but to sell it at a bargain price as it is better to sell a product rather than to dispose of it.
At GooDay, employees manage inventory on the basis of historical data. However, human intuition has its limitations.
Therefore, GooDay now has used AI technology in order to analyze a large amount of data to forecast POS and weather sales. The accuracy is quite high, and the difference between the estimated number and the real number is only 1 or 2.
As a result, unsold bargain sales have plummeted and profit margins have improved significantly.
Finally, I would like to introduce the site “eBay.” EBay acquired the Israeli company “Sales Predict”, which provides AI-based customer analysis tools.
Then by using AI technology, the company can analyze customer demand. They aim to increase the sales volume of their products.