5 key areas where Indian retailers can leverage AI – IndianRetailer.com

“Artificial Intelligence is taking over retail and has been used across the entire product and service cycle.

Supply chain

  • Flipkart which was acquired by US retail giant Walmart this year is using machine learning (ML) to arrive at a structured address classification system for order deliveries,
  • The ML solution classifies and resolves inconsistencies with a 98% accuracy rate.

AI-powered visual aided picking (within warehouses/ distribution centers)

  • As report indicated, Physical forms of AI are now extending beyond chatbots to robots in the warehouse. The AI robots markets is expected to grow at 28.8% CAGR between 2017 and 2023.

Returns management

  • German-based ecommerce player Otto: The AI system predicts customer purchases at 90% accuracy, thereby reducing product returns by over two million items a year.

AI for stock replenishments

  • AI-driven insights from varied data sets offer significant scope to automate stock replenishments.
  • This allows the company to predict demand down to the individual store level and then automates the product orders. As a result, shelf gap was found to be reduced by 30% during trial sessions.36

AI for assortment rationalization

  • Global fashion retailer H&M faced a significant challenge: $4 billion worth of unsold stock
  • The number of SKUs reduced by 40% as a result”

https://www.indianretailer.com/article/operations/marketing/5-key-areas-where-Indian-retailers-can-leverage-AI.a6260/

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