Six Ways AI-powered Inventory Planning Software Helps Supply Chain Management

Until recently, SMB’s (Small & Medium Businesses) had to make do with creating their own ways to predict their inventory needs. This was usually some assembly of intuition (I.e guesswork) and an elaborate spreadsheet.

While cheap on first glance, this approach has proven to not only be extremely costly to these businesses, in obvious issues such as error and stock-outs, but also in having essential capital tied up in stock. This creates severe cashflow difficulties, even for companies with strong growth.

In my own time/previous life as an importer & retailer of kids toys, as well as working with hundred of product businesses around the world, I see numerous instances where there is an actual liquidity event do to poor cashflow awareness around inventory planning.

Now, into the market has come smart systems using AI and available via the cloud as add-ons for these businesses now. So what do they assist with?

1. Improved Accuracy: AI-powered inventory planning software uses advanced algorithms to analyze data and make accurate demand forecasts, which helps businesses to plan their inventory and minimize the risk of stockouts or overstocking.
2. Real-Time Data Insights: The software integrates with various data sources to provide real-time data insights, allowing businesses to make informed decisions quickly and respond to changes in demand patterns or other market conditions.
3. Dynamic Inventory Optimization: AI-powered inventory planning software uses machine learning algorithms to dynamically optimize inventory levels based on factors such as demand forecasting, lead times, safety stock levels, and reorder points.
4. Helps predict demand for new products with no sales history: The software takes sales data from similar products? and predicts weighted volume to allow users to accurately plan production schedules or sales forecasts.
5. Deals with Supplier Unpredictability: Clever software can detect changes in supply patterns, create alerts and give option before the producer or seller gets into a stock-out situation.
6. Increased Efficiency: AI-powered inventory planning software automates manual processes and eliminates the need for manual data entry, freeing up supply chain managers to focus on more strategic tasks and improving overall efficiency.

While many small businesses will struggle along making do, there is a growing sector of entrepreneurs who want to use smart software to make business processes faster, easier and more accurate. Utilising AI powered software for inventory planning & demand forecasting can change the landscape for scaling SMB’s. We’ve even had one customer here at StockTrim who recently said ‘Its all there, its magic!?

Kind of - it’s actually machine learning, but we’ll take it....

Dominic Sutton is the Founder at StockTrim - Smart Inventory Forecasting Software , a leading Inventory Forecasting platform built for SMB’s. Viewers can get free access with no ongoing commitment, and plans start at $99 per month.