The AI-based inventory planning software for eCommerce has paved the way for radical change in the work system in the supply chains. With the help of AI-based inventory planning software, businesses have gone from a reactive mode, in which logistics operations were adapted to changes in demand, to a proactive one Thanks to this, businesses can also witness improvement in efficiency and an increase in profitability.
But how exactly does AI-based inventory planning software for eCommerce work? In what sorts of warehouse operations is it most useful?
Artificial intelligence: from algorithm to Machine Learning
Artificial intelligence allows systems to make smarter decisions and execute automated operations without any human intervention. In most cases, it is based on a combination of three elements:
- Algorithms: planned sequence of operations applied to perform a task optimally based on prevailing conditions.
- Software: It provides the precise instructions for the execution of each of the tasks by the hardware.
- Machine Learning: It includes development that allows the machine to learn based on the historical data and repetition of operations. Machine learning-based software gradually learns and improves various processes by itself.
Inventory Planning and Supply Chain Challenges
To better understand the possibilities of inventory planning software for eCommerce, let’s consider some of the most common businesses face while managing inventory and establishing efficient supply chains.
An overabundance of data:
Data inventory management turns out to be a tedious process because of the amount that any company tends to accumulate. While carefully developed and supported inventory planning software can easily track and store data, it would still require a significant effort from human staff to process all of it.
Over time, it becomes challenging to track every item in the inventory and get relevant analytics. Avoiding tracking every incoming and outgoing item can have devastating effects on turnover, a proper response to increased or decreased demand, timely delivery decisions, etc.
Challenges while business planning:
Inventory planning is a significant part of successful business planning in any industry. For successful growth, businesses require real-time data collection and processing of all data and agreeing on decisions and responses to various instances.
Increased operating costs:
With an increase in the inventory size, it gets difficult for a company to maintain profitability throughout the branch. Whether it’s the delivery service, the data mining and analytics teams, or employees keeping track of products in storage, funding increases with the business’s size. Moreover, usually, these numbers are far from acceptable.
IT inventory management:
IT asset management within an organization requires extreme control. If performed wisely, it can bring considerable benefits to the business and minimize spending on assets. AI-based inventory planning software also helps businesses execute this process correctly.
AI-Based Solutions for Inventory Planning and Logistics
The application of artificial intelligence in inventory planning is rapidly evolving, intending to reach its full potential in the upcoming years. However, some of them are already establishing themselves in the sector:
1. Automation of transfer of products in the warehouse
One of the significant advantages of inventory planning software for eCommerce is automated warehouses. They allow businesses to plan and carry out transport and product placement operations autonomously.
2. Planning, predictions, and modeling in the inventory planning process.
Inventory planning doesn’t end with storing and delivering products from one location to another. It generates and relies on massive amounts of data to be efficient when considering time, money, and workforce.
Both overstocking and under stocking are usually caused by the businesses’ inability to see and respond to demand changes for a specific product. Predicting such occurrences requires extremely competent analysts and business model experts or an AI-based inventory planning software. Since it involves various other complicating factors, such as more than one warehouse, location-specific demand, and much more, each product has specific characteristics that managers and analysts must adapt to.
Artificial intelligence-based inventory planning software for eCommerce can provide information that was previously unavailable. Businesses can easily take care of inventory planning by utilizing robust control over operations by making and acting on predictions. Moreover, AI-based software can quickly analyze multiple products simultaneously, which is necessary for the successful planning, storage, and creation of delivery schedules.
1. Stock management and fulfillment
With the help of inventory planning software for eCommerce, businesses can improve customer satisfaction and gain a sense of accomplishment. Planning errors and improper inventory tracking can easily lead to shortages and delays, negatively impacting revenue.
As mentioned earlier, AI is already very proficient at analyzing customer behavior patterns and hosts several other factors that encourage proper inventory planning. In addition, well-developed inventory planning software for eCommerce can easily automate the storage process and increase delivery efficiency by suggesting the best routes.
With the help of information gathered via data mining, inventory planning software can also help establish efficient transportation from manufacturing units to the warehouse, essential for volatile products with a shorter shelf life.
About the Company:
With the help of AI-based inventory planning software, businesses can enjoy a more efficient inventory planning system that can meet most of their business requirements. At Fountain9, we provide AI-based demand and inventory planning solutions to help businesses achieve their goals and grow faster.