How AI and predictive analytics can help SMBs plan inventory and production better
Artificial intelligence (AI) is one of the buzzwords of today. Its application has extended to various fields, including marketing and finance. From small to big businesses, everyone is looking at leveraging this technology.
One of its most promising uses has been for data analysis and understanding consumers, which is now helping businesses in inventory management and supply chain.
Predictive analytics uses AI and machine learning to predict trends and come up with business solutions.
It helps small businesses in planning their production cycle based on demand predictions.
Gulshan Kaushik, Vice-President-Customer Success at Mumbai-based Bizongo, says digitisation of back-end operations can help both small businesses and customers with visibility and transparency in operations. The senior executive at the tech-enabled B2B supply chain platform gives an example of a company that makes T-shirts. “If I have digitised my inventory, I know what is the entire capacity of all of my warehouses.
Now, there will be a yellow T-shirt that has a high demand in one particular area and low demand in another. By studying this data and consumers’ purchase history, AI can identify which area will have more demand for the T-shirt. I can stock the nearby warehouse or store accordingly, and this will also help me with better production planning,” he says.
Such a system will help bring down the variable cost of the company and will also help in improving manufacturing efficiency at the factory.
