The Benefits of Artificial Intelligence for Retail Business

Optimizing the logistics chains of retail traders is essential. Consistent performance, improved inventory management, reduced

Optimizing the logistics chains of retail traders is essential. Consistent performance, improved inventory management, reduced environmental impact, etc., there are many advantages. Artificial intelligence is a major asset for a successful optimization. In this article, we are going to deal with this technological solution and its positive impacts on your retail activity optimization or RAO strategy.

To Sell Faster in an Environmentally Responsible Manner

During the period when your products are on sale, you have to sell them at competitive prices and deliver them into high gear to customers that technology has made impatient. Currently, it is advisable to reconsider this intense period of purchases from an ecological angle, whether you do directly in your physical store or on Internet.

At a time when the planet is at its worst, the ecological impact of trade is to be taken into account at every link in the supply chain, from the production to the delivery to the final consumer. A poorly managed logistics chain will indeed lead to more CO2 emissions, a congested urban road (hence a greater carbon footprint), but also noise nuisances, expensive storage areas or additional delivery costs on the road.

Fortunately, artificial intelligence and big data technologies are now able to process retailers’ data in real time. It allows them to make decisions almost instantly to enhance their supply chain and control costs. This new generation technology is a great asset for your retail activity optimization.

The Advantages of Immediacy

Real-time responsiveness means being able to react to an unforeseen event while you are already running the programmed plan. This involves, for example, controlling a canceled order in real time to prevent the product from returning to the storage location.

Thus, if a person orders a specific product on his favorite e-commerce site and then cancels his order at the last minute while it is already being delivered, the retailer can propose the item at a competitive price to interest another neighboring buyer and have him directly deliver the product of the initial order canceled. This helps to satisfy the consumer and optimize the supply chain from a cost and ecology point of view.

Everything lies in the instantaneous reaction of the system. This avoids having the product go back and forth between the place of storage and the place of delivery and considerably reduces its carbon footprint. This responsiveness relies on a system that is able to absorb all real-time delivery flow data, that is able to react to an incident or event that happens on the supply chain and that is capable of making an automatic decision. For this to work effectively, all actors in the supply chain need to be equipped and connected to powerful and reliable data management tools.