Amid shifting trends, uncertain supply chains and margin-decimating markdowns, inventory planning and allocation has never been more challenging. AI, however, can sharpen inventory planning and save money — if applied correctly.
“AI is helping our teams be more precise on how we deploy inventory across the globe,” said Molly Kozar, senior director, omni location planning, Abercrombie & Fitch Co., in the recent Sourcing Journal webinar “AI Explained: Everything Planning Teams Need to Know” (now available to view on demand). “Within the last few years, really, Abercrombie has been experiencing change — brand positioning, target customer, store footprints, the mix of digital versus physical, it’s all changing. AI is one of the tools that we have been able to leverage to give us that speed and flexibility to keep up.”
That said, AI must start with a brand’s strategy and needs. There’s an expression that if the only tool you have is a hammer, you tend to see everything as a nail. With artificial intelligence, brands and retailers must pause before they metaphorically start hammering in screws. “I found it important to first identify the problem,” Kozar said. “And then chase if AI can help solve that problem.”
Source: WWD.com