Artificial Intelligence
Introduction
In this three-part series, “Revolutionizing Retail: The AI Playbook for Maximizing Profitability,” we explore how AI is transforming retail – from demand forecasting and pricing strategies to supply chain optimization and customer experience.
The insights shared in these articles have been developed based on in-depth conversations with the team at Centric Software, whose expertise in AI-powered retail solutions has provided valuable perspectives on how brands can drive profitability in an increasingly digital landscape.
Missed the first two entries of this series? Catch up now: Part 1 and Part 2
Today, in the third and final instalment of this series, we explore ‘Mastering Inventory: From Replenishment to Deadstock Reduction’.
For retailers, inventory is both an opportunity and a challenge; too much stock leads to waste and markdowns, while too little can mean missed sales, frustrated customers and decreased loyalty. Striking the right balance is critical, but achieving it has never been easy – until now. With artificial intelligence (AI), retailers are transforming inventory management from a guessing game into a strategic advantage.
The Inventory Conundrum
Traditional inventory management relied on historical data and gut instinct, often leading to costly missteps. AI changes the game by analysing real-time sales data, market trends and customer behaviour to make precise, actionable recommendations. From replenishment to sell-through, AI equips retailers to make smarter decisions across the entire inventory lifecycle. More specifically:
🔹1. Intelligent Inventory Replenishment
Replenishing inventory is about more than just restocking shelves – it’s about ensuring the right products are in the right place at the right time. AI-driven inventory replenishment tools provide retailers with predictive insights to:
1️⃣ Optimize stock levels: Maintain ideal quantities to meet demand without overstocking.
2️⃣ Enhance allocation: Distribute inventory intelligently across stores and channels based on localized trends.
📊 From Insight to Impact: Trespass, the global outdoor brand, harnessed AI-enabled solutions for allocation and replenishment. The result?
🎯Better range planning, forecasting and inventory allocation
⏳Reclaiming 20% of their weekly reporting time and empowering faster assortment planning
🔗 Discover how Trespass is reducing markdowns and making range planning faster here.
🔹2. Deadstock Reduction and Sell-Through Optimization
Deadstock is a retailer’s worst nightmare – products that don’t sell drain resources and occupy valuable space. AI helps minimize this risk by:
1️⃣ Identifying slow movers: Detect products that are underperforming early and take corrective action.
2️⃣ Improving sell-through rates: Recommend targeted promotions or dynamic pricing to accelerate sales.
🔹3. Holistic Inventory Visibility
AI-powered platforms offer a unified view of inventory across channels, enabling retailers to:
1️⃣ Reduce silos: Seamlessly coordinate between e-commerce, brick-and-mortar, and warehouse operations.
2️⃣ Enable real-time adjustments: React swiftly to changes in demand or supply chain disruptions.
The Sustainability Edge
Effective inventory management isn’t just about profitability – it’s also about sustainability. Reducing overproduction and deadstock directly contributes to minimizing environmental impact. AI empowers retailers to align their operations with sustainability goals, appealing to eco-conscious consumers while cutting costs.
The Path Forward
Inventory management is no longer a back-office function – it’s a critical driver of retail success. By leveraging AI, retailers can reduce waste, increase efficiency, and meet customer expectations like never before.
The question is: are your inventory decisions positioning you for profitability and sustainability, or are inefficiencies costing you the chance to lead the market?
From its headquarters in Silicon Valley, Centric Software® provides an innovative and AI-powered product concept-to-replenishment platform for retailers, brands and manufacturers of all sizes. As experts in fashion, luxury, footwear, outdoor, home and related goods like cosmetics & personal care as well as multi-category retail, Centric Software delivers best-of-breed solutions to plan, design, develop, source, buy, make, price, allocate, sell and replenish products. To learn more, contact Centric Software.
Want to meet the Centric team in person? You’re in luck – Centric are sponsoring our next 3 events! Click through on the banners below for more information.
