Research from Symphony RetailAI and Incisiv also reveals that 88% of retailers see demand forecast accuracy as their most significant opportunity for improvement
DALLAS, April 19, 2022 – Symphony RetailAI, a leading global provider of integrated AI-powered marketing, merchandising and supply chain solutions for FMCG retailers and manufacturers, today announced findings of an executive survey, “Role of AI/ML in Supply Chain and Demand Forecasting,” conducted in partnership with Incisiv.
Survey respondents indicated their prioritization of data-related initiatives, with 82% focusing on data-driven demand forecasting and 61% citing improved master data management as a top supply chain priority.
The survey asked retail executives to evaluate their supply chain performance over the past two years and indicate areas of the supply chain where they intend to focus improvement efforts. Respondents also had the opportunity to describe their organization’s use of artificial intelligence (AI) and machine learning (ML) and identify perceived barriers to the adoption of these technologies.
Retailers can no longer cope effectively using historical supply-chain capabilities
The survey found that 87% of retail executives think their company’s supply-chain performance either lags the competition (22%) or is only on par (65%). Only 13% of retail executives think they outperform their peers, further highlighting the untapped opportunities for AI.
New economic factors and other global obstacles also underscore the importance of AI, as current top-of-mind supply chain issues include many that can only be meaningfully mitigated with the application of data science. The survey found that nearly nine out of 10 retailers (88%) state that they have a significant opportunity to improve in demand forecasting, and the same percentage want to do better contingency supply source planning.
Retailers understand AI’s potential for the supply chain but need a clear path to move forward
The large majority (87%) of retail executives surveyed by Incisiv say they have not yet taken meaningful steps to embrace AI. Only 6% of respondents were self-described adopters of AI, while another 8% have dabbled or enjoyed early success with piloted technology. Many of those who haven’t made progress with AI are uncertain about how to move forward successfully – in fact, 39% indicated they are unsure how to apply AI to real-world scenarios.
Symphony RetailAI and Incisiv also found that 92% of retailers feel that their inability to integrate data from multiple sources prevent them from successfully pursuing AI solutions. Other roadblocks include poor data quality (79%) and a lack of confidence in AI to make good recommendations (31%).
Even with these perceived roadblocks, retail executives are aware of the risks. The survey found that nearly a quarter (22%) of respondents are concerned about falling behind to the competition due to a lack of an AI-based strategy.
“As new threats loom and other economic factors create supply chain unpredictability, these results highlight the need to future-proof grocery supply chains to handle unexpected disruptions,” said Troy Prothero, Senior Vice President Product Management, Supply Chain Solutions at Symphony RetailAI. “The importance of using data, including AI-driven demand forecasting, to gain a competitive supply chain advantage isn’t going away, so organizations that prioritize new ways of using data for decision-making will be better positioned to succeed.”
“Our research with Symphony RetailAI sheds light on the critical need for retailers to use AI to break down silos and utilize as much organizational data as possible,” said Gaurav Pant, Chief Insights Officer for Incisiv. “Doing so will give retail organizations a competitive advantage through optimized and integrated end-to-end supply chains.”
Symphony RetailAI and Incisiv will discuss additional findings of the research, along with supply chain best practices, during a webinar on April 27. Register today for “The New Rules of Grocery Demand Forecasting,” hosted by Progressive Grocer, or visit Symphony RetailAI to learn more.
Survey Methodology
Symphony RetailAI commissioned Incisiv to conduct an executive survey covering North American retailers across consumer goods retail segments such as grocery, general merchandise, home improvement, drug, dollar/discount and convenience. Thirty-seven percent of respondents were vice-president level or above, including 12% of those in senior vice president or executive vice president roles. Executives from large retailers (annual revenue >$1B) made up 24% of those interviewed, with respondents from retailers of revenue ranging from $100M to $1B rounding out the remaining 76%.
About Symphony RetailAI
Symphony RetailAI is a leading global provider of role-specific, AI-powered revenue growth management solutions and customer-centric insights for retailers and CPG manufacturers across the entire value chain. Our proven, industry-leading, AI-enabled software, coupled with the industry’s only conversational natural-language AI interface, CINDE, provides key users with proven prescriptive and preemptive recommendations that make it easy to identify end-to-end growth opportunities, activate plans and realize measurable profit and revenue growth. Our solutions are specific to key decision-maker roles focused on profitable growth across the retail value chain from source to consumer. With our strong global partner ecosystem, we serve more than 1,200 organizations worldwide – including 15 of the top 25 global grocery retailers, 25 of the top 25 global CPG manufacturers, thousands of retail brands, and hundreds of national and regional chains – all through the Microsoft Azure Cloud. Symphony RetailAI is a SymphonyAI company. More at Symphony RetailAI.
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at https://www.incisiv.com
Media Contact
Adrienne Newcomb
Ketner Group Communications (for Symphony RetailAI)
adrienne@ketnergroup.com
The post Despite Fearing they Lag Competitors in Supply Chain, 87% of Retailers Say They Have Not Yet Taken Meaningful Steps to Embrace AI appeared first on Multichannel Merchant.
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