Implementing AI in the Supply Chain
Using AI to understand purchasing patterns can help retailers stay on top of the supply chain by monitoring product availability and stock the products their customers actually want. AI looks at data at a much larger level than one interaction or conversation. It allows retailers to group like elements together and form trends to predict seasonal changes, hot topic items and everyday products.
One example is the feature that tells customers, “Based on other products you might like...” Retailers can utilize AI for this feature to understand what the customer is buying, and likely to buy in the future, helping to clear out older stock and bring in new stock to sell faster.
Zappos, a company known for their great customer service, has reached the top of their market through smart channel routing and AI assisted logistics. They use more than 200 algorithms between CRM and distribution to create a better customer experience.
They use AI to understand drop rates and ZIP code management as soon as an order is placed, and create proactive routing paths using the most cost effective distribution center to get it to the customer’s doorstep faster.
Creating Effective Data Management
Organizations using data analytics are 23 times more likely to outperform their competitors in terms of customer acquisition and nine times more likely to surpass them in customer loyalty. But only 3% of business professionals say their organization is able to act on all of the customer data they collect, and 21% say they can act on very little of it.
This exemplifies the challenge of successful data management when employing AI technology. It’s vital that retailers are continually evolving their ML (machine learning) algorithms with version control testing on an ongoing basis to create the most successful algorithm.
By indexing and archiving, making the data usable in the future, retailers can train new models on an ongoing basis. This helps them mature past monitoring ML paths to unmonitored paths, allowing the technology to quickly reset the base approach when something isn't working, and get back on track faster.
Cris Kuehl is VP, analytics and client insights at customer experience management company Sitel Insights