The pandemic exposed the retail industry’s reliance on long planning cycles, which hindered companies’ ability to respond quickly to supply chain challenges, then excess inventory, as consumer purchasing patterns and market conditions changed overnight. Industry leaders realized they didn’t have the fundamentals in place to react as quickly as the market demanded.
Burned out by that cycle, a growing number of companies are now looking to reinvent how they track and manage inventory. They’re looking for ways to increase the responsiveness of their inventory planning and demand sensing capabilities to be able to chase demand without overindexing. And they’re increasingly looking to artificial intelligence to make it happen.
However, while many leaders are already embracing AI to better predict demand, manage inventory, and optimize their supply chains, some common hurdles are getting in the way of successful adoption. A few key steps can help retailers maximize their investment in AI to reinvent inventory management.
- Increase Your Organization’s Investment in AI
- Embrace a Multiyear Approach Focused on Testing, Learning, and Iterating
- Lean on Leadership to Tell the AI Story and Build Trust
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