Artificial Intelligence (AI) is highly demanded practically in every industry. The greatest example of the successful usage of top-notch technology is the retailers and other e-commerce companies, especially, their inventory management system. AI provides powerful insights for organizations like trends identified from large volumes of data analyzed so that business owners and their warehouse teams can better manage the daily tasks of inventory management.
Improved decision-making, reduced costs, eliminated risks, optimized warehouse work, increased productivity are just a few benefits of the implementation of AI technology. According to the statistics, in 2020 about 45.1% of companies have already invested in automation of the warehouse and 40.1% in AI solutions.
5 Ways To Use Artificial Intelligence For Inventory Management
It’s estimated that AI can add $1.3 trillion to the global economy in the next twenty years if the technology is used in supply chain and logistics management. It’s because AI can make supply chain management more efficient at all stages.
Nvidia, IBM, Amazon, Facebook, Microsoft, Salesforce, Alteryx, Twilio, Tencent, Alphabet are a few big names among the companies that have already leveraged the benefits of AI. The following are 5 ways that AI is revolutionizing inventory management.
1. Data Mining and Turning It Into Solutions
AI is extremely helpful in data mining. AI solutions have the ability not only to gather but analyze the data to transform it into timely actions. Thus, AI implemented into the inventory management system helps the business to evolve more rapidly and find more effective solutions to a particular situation. By monitoring, gathering, recording, and processing the data and interests of every customer, businesses can understand their customers’ demands to build more effective strategies and pre-plan the needs of the customers and stock products.
2. Dealing with Forecasting, Planning, and Control Issues In The Inventory Management Process
Inventory management is not only about storing and delivering items but it’s about forecasting, planning, and control. By implementing AI solutions, you minimize the risks of overstocking and understocking thanks to the ability of the technology to:
- Accurately analyze and correlate demand insights;
- Detect and respond to the change in demand for a specific product;
- Consider location-specific demand.
AI-based solutions have the flexibility and ability to analyze all…
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