From bartering in ancient markets to the rise of digital commerce, the world of trade has always been shaped by innovation. And right now, we are witnessing yet another shift that took place due to the advances in AI in the supply chain.
Even if you’re not a retail specialist, over the past several years you must have observed significant shifts in approaches to inventory, demand forecasting, and stock replenishment across outlets. However, the question arises - what is behind this dynamism?
The answer is Artificial Intelligence.
We have now established that AI is not just a fad, but rather is already transforming the retail industry. In fact there are estimates that suggest that the AI-powered retail market will rise from USD 7.97 billion in 2024 to USD 31.43 billion by 2029. Now that is an annual growth rate of 32.17%!
But what does that mean for store replenishment? Let’s break it down.
The term store replenishment may seem quite boring when mentioned, but is the backbone of the store operations. In its broadest sense, it simply ensures the right stock on the shelves, at the right time. In the past, it often required a fair degree of guesswork, manual (estimation using) spreadsheets, and tracking.
Enter AI. As a real-time big data processor, AI can determine what the customer wants, how much inventory is required, and when to restock. It is similar to having an advisor who can take into account the patterns in sales and inventory, weather, social media buzz, and everything else that affects stores so that they can always be prepped and stocked up for the next influx of customers.
Customer satisfaction: Customers who can’t find what they are looking for of course will run to another store.
Sales maximisation: Storing high selling items on the shelves leads to more chances of conversion.
Inventory efficiency: It ensures enough stock to satisfy customer demand without overstocking as it can lead to products being useless & stagnant for a long time.
Operational efficiency: A more efficient replenishment system implies less trouble for the staff and a better operating store.
Waste reduction: AI eliminates over ordering and excess inventory.
Now, let’s get into the cool part: Generative AI. It not only computes the historic data and also forecasts the future trends and suggestions with the replenishment models.
Here’s how Generative AI is making the replenishment smarter:
Inventory Reconciliation
It compares physical stock figures with data on the system to identify variance. If something is a bit off, it can alert it and then recalculation of records can occur without the need to count on one’s fingertips.
Who benefits: Store Managers, Inventory Managers, Supply Chain Coordinators.
Shelf Space Optimisation
It uses traffic patterns, customer behavior and sales data to determine how it is best to organise products on the shelves. It produces fluid, real-time design configurations that optimise selling and enhance consumer satisfaction.
Who benefits: Retail managers, Retail supervisors, Floor managers
Stock Transfer Management
This makes it easier to move stock from one store or warehouse to another. It ensures that there is sufficient stock, monitors shelf space and makes decisions on transfer stocks. This information is valuable because retailers can optimise their supply chain and make sure that the right products get to the proper location on time.
Who benefits: Store Managers, Warehouse supervisors
Smarter Promotional Planning
Planning a sale or promotion? Machine learning enables retailers to predict the consequences of promotions on inventory and sales to guarantee that inventory is optimized during and after a promotion.
Who benefits: Inventory Planners, Retail Store Managers
Artificial Intelligence is a total game-changer in retail, and it’s making store replenishment faster, smarter, and more efficient. Whether you’re managing demand forecasting, inventory, handling stock transfers, or designing shelf layouts, AI is here to make your life easier and your store more profitable. So, if you are in retail and are thinking about how to prepare for the future, it is about time you transition to using AI with Merchmix.
Merchmix is an AI-driven Inventory planning & forecasting tool that can assist retailers to set ideal store replenishment tactics and efficient inventory control together with accurate forecasts of demand.
Are you ready to enhance your replenishment process? Click the link here to learn more.
Publish Date : 2025-01-14
Onboard Merchmix and Let AI Handle the Heavy Lifting in Planning.
