AI and machine learning can be a powerful tool to forecast or estimate product supply management. They can analyze vast amounts of data, detect patterns and make accurate forecasts for future demand that'll help businesses optimize inventory levels, avoid "out-of-stock" and reduce excess inventory. [Packworks](https://packworks.io/), a B2B open platform provider to sari-sari stores, takes advantage of artificial intelligence and machine learning to help sari-sari stores across the Philippines make better decisions in stocking their shelves.
Taking advantage of the company's large and robust data on sari-sari stores, Packworks uses time series forecasting, using AI and machine learning to provide stores with additional information that can enhance their inventory planning processes. Packworks is capable of making predictions across all product categories sold in over 200,000 sari-sari stores nationwide and can run up to 5 years' worth of daily transaction data. The model utilizes various machine learning algorithms to identify the most accurate and reliable predictions based on its ability to anticipate and align with real-time and current data trends.
So what do "saripreneurs" get from this model? They would gain a better understanding of consumer preferences and purchasing patterns. In turn, this would lead to optimized product assortments, reduced stockout and overstocking, improved customer satisfaction and increase profitability.
"With access to Packworks' extensive and reliable dataset of sari-sari store transactions, we hope to equip our saripreneurs with the means to optimize their operations and drive growth in the highly competitive retail market," Packworks Advanced Analytics and Insights Manager Arch Tesorero said.
Packworks stresses though that the model is a supplementary resource and should not be the sole determinant for inventory planning.
Last year, Sari IQ was launched. It is Packworks' business intelligence tool that can provide real-time and historic information on consumer expenditures. The tool is customizable and enables retailers and multinational brands complete visibility into sari-sari stores' operations allowing them to extend their slow-moving products and services to a wider pool of customers.
Indeed, by leveraging these technologies, sari-sari stores can improve their inventory planning processes, reduce costs, enhance customer satisfaction and gain a competitive edge in the market.