Both overabundance and shortfall of products in inventory can affect the organization’s health and profitability, it is estimated that it cost retailers around $1.1 trillion each year across the globe. The remaining stock is generally marked down and results in reduced sales turnover. When there is any instance of out of stock, it definitely results to loss of sales, and make customers frustrated, leading to lack of customer retention.
Re-stocking is one of the crucial application of AI in retail sector. AI supports retailers to reload supplies by recognizing demand for a specific product based on sales history, geographical area, climatic condition, marketing events, and trends
According to a report on Symphony Retail’s 2018 white paper: Hennes & Mauritz implements AI to analyze store returns, bills, and various promotional offers to predict the upcoming demand for apparel and accessories and thus manage inventory.