Businesses across the globe are facing many challenges related to inventory management. Currently, most of the processes involved in it are done manually. So a lot of time and resources are utilized in carrying out the various tasks. Also, there is a high chance of error because the tasks are done manually.
Both these factors significantly hamper business operations. This leads to customer complaints due to various reasons such as a demand and supply gap, incorrect deliveries, and various other issues. To overcome these issues, businesses can employ artificial intelligence (AI) in their inventory management operations. Here’s a look at six reasons why businesses should consider implementing AI for inventory management.
Improving Product Monitoring
AI in the form of autonomous robots is a valuable addition to warehouses, godowns, and self-storage facilities. The robots can be used to carry out various operations. For example, robots can be used to sort, move, and arrange items autonomously. This can be done by equipping the robots with smart sensors and computer vision technology. The robots will easily be able to identify the shortest route in moving an item from one place to another, detect any obstacles in the path, and label items with high precision.
Thus, the products can be easily monitored and managed with the addition of AI, significantly improving productivity, reducing errors, and enhancing monitoring procedures.
Reducing Demand-Supply Gap
Enterprises generally face a demand and supply gap, especially during festivals and sale seasons. This issue can be solved easily with AI and predictive analytics tools. AI can be used to predict product demand with high precision with data analytics. This means that the inventory will always be stocked at optimum levels. The chances of the inventory being understocked or overstocked are reduced.
For example, data regarding the sales during the Black Friday sale for the previous year can be analyzed with data analytical tools. AI algorithms can then be used to predict the demand for the upcoming year with high accuracy. This ensures that enterprises will have optimum levels of product available in their inventory.
Streamlining Logistics
With AI, every stage in the logistics can be streamlined, which can help improve efficiency and productivity. For instance, the products are always in optimum stock levels due to AI and predictive analytics. Similarly, products can be located, packed, and dispatched without any errors at the earliest with the help of AI-capable autonomous robots.
Additionally, AI-capable autonomous vehicles can help in delivering items to customers with higher efficiency. They also reduce the dependency on human resources, which can be utilized on other tasks. Moreover, AI can be used for back-end processes like data entry. Thus, AI can prove helpful in providing end-to-end automation solutions for logistics.
Improving Customer Service and Support
AI-capable chatbots can be used to keep customers updated and track their products in real-time throughout the day. The chatbots can provide information such as the product location, estimated time of arrival, product availability, cause of delays, among others. This helps keeps customers updated on their expected parcels, helping improve customer experience.
Various businesses, such as DHL and Amazon, use AI chatbots to provide exceptional customer service and support, which helps retain and attract customers. For instance, Amazon’s Echo provides customers information about their ordered products in an interactive and easy way. Thus, we can see that AI has made it easier and quicker for customers to find answers to their queries at any time of the day.
Enhancing Workplace Safety
AI-based systems help with better planning and management of the warehouse. This, in turn, helps improve workplace safety standards, including employee safety. AI-based safety systems can be used to monitor and analyze the warehouse and look out for hazardous situations. For instance, computer vision-based systems can detect any misplaced objects that pose a threat to safety. They can automatically alert the employees about the same and help prevent any unfortunate event.
Similarly, AI can be used in various other ways to help enhance workplace safety. Businesses can react quickly and decisively to keep the workplace safety at the highest possible standards, thanks to AI.
The use of AI undoubtedly benefits businesses with inventory management tasks. That being said, businesses should not restrict the use of AI only for inventory management. Instead, they should try incorporating AI in as many business processes as possible. AI and automation are the future of inventory management and other associated processes. Businesses should hop on the AI train before it’s too late to reap the vast benefits provided by AI.