In the world of retail, the goal is simple: sell product.
However, reaching that goal is a completely different story. When you throw competition, customer expectations, stores, inventory, logistics, and fulfillment into the mix, things reach a whole new level of complexity. The challenge is really two-fold:
- ) First, demand is seemingly unpredictable, with a multitude of factors influencing a consumer’s desire to want to buy something.
- ) Secondly, there’s the issue of optimization – how can retailers leverage their inventory more productively?
Overcoming these challenges requires retailers to better predict demand and optimize their inventory decisions more effectively to ultimately maximize every opportunity for a sale. Artificial intelligence and advanced analytics technologies are growing to be the tools of choice for retailers when it comes to optimizing inventories as customer expectations force retailers to invest heavily in digital capabilities.
Many retailers, according to Gartner, are “simply not optimizing their most significant assets.” What asset is more important than a retailer’s inventory? Here are three reasons retailers should adopt AI for inventory optimization in 2019: