Retail Leader - May/June 2018 - S6

AI in the Supply Chain
also be facing a multitude of challenges related
to warehouse and DC management. In order
to ensure successful execution, companies
need to take an end-to-end view of the supply
chain, managing the relevant trade-offs and
synchronizing planning and logistics to drive
value. Adoption of machine learning in mapping
varied demand patterns and scenarios for more
effective inventory optimization and channel
allocation could become an important step in
timely replenishment and efficient logistics.

Machine learning has an important place in
the supply chain, particularly when it comes to
demand forecasting. With traditional planning
methods, demand forecasts are not always
accurate. This leads to out of stocks, overstocks
and products being returned to vendors. It also
creates unhappy customers and makes retailers
unable to attain financial goals.
Machine learning helps forecast inventory,
demand and supply in that predictions are
not based solely on historic data. Rather, the
technology predicts what will sell, driving
enhanced forecasts based on real-time data
using demographics, weather, performance of
similar items and even online reviews and social
media. Predictions can be made by store, SKU,
size, color and other criteria.
Machine learning even helps identify and
correct data errors and risks in the supply
chain, elevates insights from the Internet of
Things devices in the field and plans logistics.
This optimizes delivery of merchandise while
balancing supply and demand, making human
analysis unnecessary.
Issues stemming from inventory management
or, more broadly, supply chain planning can
have a profound effect on logistics operations.
For example, a retail company that is developing
an omnichannel strategy struggles to manage
the complex trade-offs between demand
forecasting, inventory orders, channel allocation
and logistics costs and capacities as it tries to
respond to customer demand. Retailers may

Initiatives involving AI in supply chain management*
33%
31%

52%
22%

41%
24%
Currently part of
initiative
Plan to incorporate in
next 12 to 24 months

Demand forecasting

Inventory planning

Replenishment

* Figures are based on AI initiatives that are currently in the pipeline or are being planned in the next 12 to 24 months

Source: 2018 EIQ Retail Innovation Survey

6



Table of Contents for the Digital Edition of Retail Leader - May/June 2018

Contents
Retail Leader - May/June 2018 - Cover1
Retail Leader - May/June 2018 - Cover2
Retail Leader - May/June 2018 - 3
Retail Leader - May/June 2018 - Contents
Retail Leader - May/June 2018 - 5
Retail Leader - May/June 2018 - 6
Retail Leader - May/June 2018 - 7
Retail Leader - May/June 2018 - 8
Retail Leader - May/June 2018 - 9
Retail Leader - May/June 2018 - 10
Retail Leader - May/June 2018 - 11
Retail Leader - May/June 2018 - 12
Retail Leader - May/June 2018 - 13
Retail Leader - May/June 2018 - 14
Retail Leader - May/June 2018 - 15
Retail Leader - May/June 2018 - 16
Retail Leader - May/June 2018 - 17
Retail Leader - May/June 2018 - 18
Retail Leader - May/June 2018 - S1
Retail Leader - May/June 2018 - S2
Retail Leader - May/June 2018 - S3
Retail Leader - May/June 2018 - S4
Retail Leader - May/June 2018 - S5
Retail Leader - May/June 2018 - S6
Retail Leader - May/June 2018 - S7
Retail Leader - May/June 2018 - S8
Retail Leader - May/June 2018 - 19
Retail Leader - May/June 2018 - 20
Retail Leader - May/June 2018 - 21
Retail Leader - May/June 2018 - 22
Retail Leader - May/June 2018 - 23
Retail Leader - May/June 2018 - 24
Retail Leader - May/June 2018 - 25
Retail Leader - May/June 2018 - 26
Retail Leader - May/June 2018 - 27
Retail Leader - May/June 2018 - 28
Retail Leader - May/June 2018 - 29
Retail Leader - May/June 2018 - 30
Retail Leader - May/June 2018 - 31
Retail Leader - May/June 2018 - 32
Retail Leader - May/June 2018 - 33
Retail Leader - May/June 2018 - 34
Retail Leader - May/June 2018 - 35
Retail Leader - May/June 2018 - 36
Retail Leader - May/June 2018 - 37
Retail Leader - May/June 2018 - 38
Retail Leader - May/June 2018 - 39
Retail Leader - May/June 2018 - 40
Retail Leader - May/June 2018 - 41
Retail Leader - May/June 2018 - 42
Retail Leader - May/June 2018 - Cover3
Retail Leader - May/June 2018 - Cover4
http://www.nxtbookMEDIA.com