How AI is transforming inventory management

Artificial intelligence (AI) can be the next big thing in inventory management. In the recent years, we have witnessed an increasing use of artificial intelligence, and right from large technology bellwethers like Apple and Google to budding start-ups, businesses of varied sizes and scale are betting on AI.

Now whenever people talk about artificial intelligence, they always think about complex and an artificial robot with a human like structure. In reality the definition of artificial intelligence is very simple.

It is basically a technology which has the capability to imitate human beings, and is very different from the traditional machines which have pre-installed functions. In recent times there are two types of artificial intelligence: one is known as automation and the other is known as augmentation. In the case of automation artificial intelligence works free without human interference and in augmentation artificial intelligence work with the humans collaboratively.

The application of AI is so wide that only the sky is the limit. It is with the deployment of AI tools, retail companies like Walmart decide which food is going to sell better as per the weather conditions and several such factors. Today, AI tools can predict that there would be an increase of sales on steaks when it’s dry, cloudy and windy while there will be increase in the sales of burgers when the weather will be hotter and sunnier.

Furthermore AI helps distributors by alerting them about the restocking of the fridge or when the coffee machine needs re-filling. There has been news that Lakeba’s shelfie robots will soon hit up the US market and will use facial recognition to detect when products are out of stock or kept at the wrong shelf.

The greatest advantage of using AI would be to know when the inventory is out of stock, this means that the suppliers will know what’s not in stock. Often it happens that a customer wants a product but it could be delivered since the product is out of stock; this annoys customers and is not good for the business. With the use of AI, these issues can be ruled out without hassles.

This application can be applied to pretty much any industry. Be it FMCG, apparels or any other industry.

HASHTAGS
#procurement #automation #businesstransformation #efficiency #bestpractice #digitization #vendormanagement #outsourcing #riskmanagement #protaiga

Author – Aval Sethi, Founder

Aval Sethi is the founder & CEO of ProTaiga and is based in New Delhi, India. As a result driven entrepreneur, Aval leads Business Transformation and Procurement Automation initiatives focusing on new-age innovation for businesses through his company.

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