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.
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.
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.
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:
AI-based solutions have the flexibility and ability to analyze all the possible factors and situations that are vital for the successful planning, stocking, and scheduling deliveries. Reducing the errors and issues in inventory management, the business can increase customer satisfaction and save costs.
Planning errors and/or inadequate stock monitoring can result in shortages, delays, and other issues that affect the revenue. AI technology can be pretty helpful in it. The technology can collect the data about customers and analyze it to identify behavior patterns and other crucial factors that help:
AI also can streamline deliveries and increase their efficiency. On-time deliveries and transportation are the fundamentals of supply chain management that have a huge impact on consumer satisfaction. AI analyzes and makes sense of all a company’s telematics data, helps to find the optimal routes to ensure the timely arrival of orders. Besides, the technology can identify any patterns and draw conclusions about the delivery processes of the company so that you can improve it.
AI-powered robots are not a new thing. Such giants as Amazon have already used them for day-to-day tasks. It’s forecasted that the robot automation market's value will reach $10+ billion by 2023. There are a number of benefits that put AI-based robots over human staff:
All that can save a business a big chunk of the operational budget. Besides that, AI-powered robots used in warehouses free employees so that they can be allocated for more urgent and vital tasks that require human cognition.
One of the most critical components in logistics is route optimization. By implementing AI solutions, companies can reduce time lost in traffic, provide faster delivery times, and in such a way save costs. That’s because AI can help in:
AI has revolutionized and reshaped both inventory management and the way companies stock and store products. The AI solutions implemented to enable the businesses to make the inventory management pre-planned, automated, based on customer demands, and even carried out by robots. AI empowers companies to:
AI is the future of the industry. Thus, if you want to stay competitive, you should implement the technology as soon as possible. The results can be outstanding.