Intelligent monitoring of the supply chain and consumer behavior is the key to generating more business value and increasing efficiency
*Per Waldir Bertolino
The 4.0 innovation movement was not restricted to the industrial sector, other areas also use these technologies to speed up their processes. The Retail 4.0 concept combines automation with existing market knowledge to predict trends and improve customer experience.
Brazilian retail has been in constant growth since 2022, mainly thanks to the use of technologies and e-commerce, which, according to research carried out by Ebit/Nielsen, represents 14% of total sales. Another piece of data, the Antecedent Sales Index of the Institute for Retail Development (IAV-IDV) projects a growth of 6.4% for the sector in February 2023, and the numbers remain optimistic.
This new retail phase seeks to place the customer as the focal point of activities, delivering speed, innovation and brand identification. Some technologies that are protagonists of this 4.0 revolution, Machine Learning and Artificial Intelligence (AI), can be used to automate frequent and similar actions, such as the search for trends, warehouse management and communication with the public, making employees and managers avoid performing repetitive tasks and direct their energy to other activities. These tools are gaining more and more space in the industry, and according to Gartner, 80% of customer service will be managed by Chatbots by 2025.
Machine Learning and AI can also be implemented elsewhere in the business to increase efficiency, help build customer loyalty and generate more profit. That said, let's understand better about the implementation of Artificial Intelligence in the retail sector and how technology can bring effective gains to companies.
Big Data and AI in eCommerce
Currently, all interactions and searches carried out on the internet generate data and leave a “digital trail”. From there, brands can implement a Big Data tool, combined with artificial intelligence, to analyze this information and gain insights into customer interests, for example. Knowing the users who frequent your e-commerce is extremely important when suggesting products on the platform. If the item meets the person's interests, the chance of his purchase being completed is greater.
Technologies 4.0 and the ESG agenda
Consumers are no longer an influential mass and have become intelligent buyers, who evaluate the brand's positioning, its social responsibility and its ecological footprint before making a purchase. The company's reputation has become as important as product quality. To help predict sustainable trends and stay in line, organizations can rely on 4.0 technologies, which monitor the market and provide transparent information for both managers and stakeholders.
ESG has become a kind of ruler that helps organizations to see their strengths and vulnerabilities. Basing action planning on this tripod ensures not only social and ecological improvement in business, but also long-term profitability.
Automated warehouse management
In large retailers, logistical processes are carried out on a larger scale to meet demands. With AI, Machine Learning and IoT, the entire progress of the supply chain is automated and monitored in real time, avoiding small errors and delays in locating products. Chain automation also allows small incidents to be resolved more quickly and automatically, in addition to enabling more assertive strategic decision-making thanks to the 360° view that management has of the chain.
The agility that technology has brought to retailers, along with greater knowledge of customers, has allowed the sector to enter a wave of expansion that persists to this day. These advantages have become a differentiator in the market, making room for innovative companies to stand out for their quality of service and the significant improvement of their customers' experience.
*Waldir Bertolino, Infor Country Manager in Brazil
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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