In the retail segment, artificial intelligence offers a host of benefits. One of the main applications is demand forecasting which can have a huge impact on the profits any retail business makes. Using Artificial Intelligence in Retail for demand forecasting helps in providing resourceful insights for budgeting.
The Need for Innovation in Demand Forecasting
The efficiency of your business’ supply chain depends on your demand forecasting strategies. Unprecedented sale volumes means you are left with several orders but a deficit of products. This can take a toll on the customers’ credibility on your business. New product introductions might fail if you do not understand the likely demand for it. All the time, money and effort spent on creating the new lineup will go waste. Finally, even to plan a sale or promotion you should understand the right kind of price cuts or offers that customers would actually enjoy. For all this and more, you will find AI solutions to be useful.
How can AI Solutions Transform Your Demand Forecasting Plans?
Better reports on future demand from multiple inputs
Manual data processing might not capture all data sources. From seasonal parameters to influence by external factors, there could be several attributes that affect customer demands. AI and machine learning make it possible to process complex datasets to come to a more practical conclusion about demand patterns. With the reports, you can enhance your business’ inventory management strategies.
Will there be a demand for the product you plan to introduce?
Sometimes you have a great plan for a whole new product line but you are unsure whether your customers will be willing to try it. That is where AI solutions come into the picture. With an efficient artificial intelligence platform you will be able to analyze the future demand by simulating the response and gathering feedback right at the pilot stage. Contextual data, competitor analysis and market status can all be summed up to come to a better conclusion about the possible success rate of the new product.
Plan promotions that can boost your sales
Every business today brings offers and price cuts. But with AI you will be able to work on the right pricing strategies while keeping the profit margins good without losing customers. Also, if you are planning to launch a competitive sale or promotion, artificial intelligence based demand analysis and forecast will help you identify the products that should be sold at discounted prices to make sales happen. What good would be a sale if you do not know what products your customers are looking for? With a credible AI platform you can transform your demand forecasting game and run promotional campaigns that actually boost your sales volume considerably.
When your business knows a near-accurate figure of the demand likely to appear in future, you end up avoiding delays due to low stock issues and expenses due to overstocking of products. And for perishable goods businesses this can be huge. So, AI solutions can be a boon for intuitive demand forecasting applications. This can be an investment that saves some major expenses for your business.