Work Intelligently

Data Hygiene: The Critical Launchpad for AI in Retail

  17 April 2024

Introduction: As we navigate the retail landscape, it’s clear that AI’s potential hinges on the quality of the underlying data. For retail IT professionals, the message is unequivocal: without well-organised, clean data, AI systems can't deliver their intended benefits. At Intellificial, we're committed to ensuring that your data sets the stage for a successful AI deployment, in line with our robust S3 framework.


The Non-Negotiable of Data Hygiene: In a world where 2.5 quintillion bytes of data are generated daily, retailers are not immune to the challenges of managing vast quantities of information. A recent study indicated that poor data quality costs businesses roughly $15 million per year, due to wasted resources and missed opportunities. Data hygiene is the bedrock upon which AI must be built; it ensures the accuracy of machine learning models that predict consumer behaviour and optimises inventory management.


End to End Data Excellence across the Retail cycle:


  1. Supplier Management: It's not just about choosing suppliers but also about maintaining a data ecosystem that supports dynamic decision-making. For instance, incorporating AI to validate supplier reliability scores can ensure a 20% reduction in procurement errors.
  2. Inbound Logistics: Leveraging AI for freight planning isn't just a buzzword. AI-enabled route optimisation may lead to a 15% reduction in delivery times. Data hygiene is critical here; clean datasets mean more reliable AI predictions and fewer logistical headaches.
  3. Warehouse Operations: Inventory accuracy sits at around 63% for many retailers. Using AI to refine this figure is essential. With Intellificial's approach, you might expect an increase towards 95% accuracy, transforming stock management and reducing overstock by 30%.
  4. Outbound Logistics: When it comes to last-mile delivery, the devil is in the data details. Imagine AI that shaves off significant delivery times, leading to a customer satisfaction score increase of 10% or more due to on-time deliveries.
  5. Store Experience: Space and shelf optimisation isn't just about aesthetics; it's a strategic move. AI can drive up to 5% sales growth by optimising product placement based on customer flow data. Clean data here translates to customers finding what they need, when they need it.
  6. Customer Engagement: In the realm of customer experience, AI can be a game-changer, but only if it's powered by quality data. Retailers using AI-driven 'next best action' strategies have seen a lift in customer retention rates by as much as 7%.


Conclusion: AI is reshaping retail, but without a foundation of clean data, even the most advanced algorithms can't unlock their full potential. At Intellificial, our expertise in data hygiene prepares your retail operations for the AI transformation journey. We offer more than just AI; we provide the groundwork that makes AI work.


Call to Action: Ready to clean up your data act and pave the way for AI success? Reach out to Intellificial, where data hygiene meets retail innovation. Let’s set the stage for AI excellence together.


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