85% of Global Retail Companies to Adopt AI Automation Within 3 Years
IBM Unveils Automation Solution Based on Watson AI Technology
It is provided as Cloud Software as a Service.

In the future, AI is expected to complement the role of humans in the distribution process as well.

On the 21st, IBM unveiled 'IBM Order Management' and 'IBM MetroPulse,' AI-based automation solutions for retail and consumer goods companies. These solutions, which converge people, processes, automation, and AI, are intelligent automation technologies that enhance human capabilities to reduce errors and innovate digital operations and customer experiences.

According to the 'AI Revolution in Retail and Consumer Goods' report, which surveyed over 1,900 retail and consumer goods executives in 23 countries worldwide in collaboration with the IBM Institute for Business Value and the NRF, 85% of retail companies and 79% of consumer goods companies plan to implement intelligent automation in their supply chains by 2021, 79% of retail and consumer goods companies plan to implement intelligent automation for customer identification by 2021, and the retail and consumer goods executives participating in the survey predicted that the adoption of intelligent automation would increase annual revenue by up to 10%.
The newly introduced 'IBM Order Management' is equipped with the 'Watson Order Optimizer,' based on IBM Watson AI. The Watson Order Optimizer functions to increase purchase conversion rates by rapidly adjusting order throughput according to seasonal supply and demand fluctuations.

Watson Order Optimizer's new predictive model uses data generated across the order processing network to learn daily sales volume patterns while also taking into account seasonal demand changes, helping companies find the optimal place to order. If the weight or size of a product exceeds the initial carrier's limits, the transportation optimization function automatically suggests alternative transportation methods, which can also reduce shipping costs.

Omnichannel customer order fulfillers can save time and increase sales by expanding collaboration between store operations, promotions, supply chain, and IT through IBM Order Management. Companies can respond to varying customer needs based on increased demand or region, thereby simultaneously improving omnichannel profitability and customer satisfaction.

'IBM MetroPulse,' announced alongside this, is a solution that leverages AI technology to help consumer goods companies better understand their customers. It combines large-scale market data provided by major consumer goods market research firms with product rating and review data from reviewers to help identify the characteristics and product preferences of customers in nearby areas.
The AI integrated into IBM Metropulse has already learned terms commonly used in the retail industry, so it understands and distinguishes between boat necks and V-necks, as well as between fashion items such as jackets and sweaters.

IBM Metropulse's AI algorithms and models identify hidden signals within data and process them to enable corporate executives and merchandisers to understand the trends, behaviors, and preferences of target customers. This solution is provided as software-as-a-service.

Luq Niazi, IBM’s Global Consumer Goods Industry General Manager, said, “New technologies such as automation and AI have rapidly emerged due to the tectonic shifts occurring in the retail and distribution industry,” adding, “The retail industry has long invested in implementing AI and data technologies, and as a result, is introducing new and innovative products and services to consumers around the world.”

He continued by emphasizing, “There is a growing number of cases seeking to adopt intelligent automation across B2B and B2C commerce value chains and operational infrastructures,” adding, “If partners and external experts are properly selected for AI adoption, companies of all sizes can enhance digital services and capabilities, customer satisfaction, and business efficiency.”