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Yahoo
a day ago
- Business
- Yahoo
To avoid product shortages, big retailers are scrapping reactive methods for AI
Retailers like Target and Walmart use AI to prevent stockouts and manage inventory. AI systems can predict demand to help improve inventory accuracy and availability. This article is part of "How AI Is Changing Everything: Supply Chain," a series on innovations in logistics. The adage "too much, too little, just right" isn't just for Goldilocks and her porridge. Balance is also critical in inventory management, the part of the supply chain responsible for analyzing what consumers will buy and making sure products are in stock at the right place and the right time. Excess inventory can lead to markdowns or expired goods, but too little product can lead to shortages that impact a retailer's brand image, customer satisfaction, and bottom line. To prevent inventory from running out, big-box retailers such as Target, The Home Depot, and Walmart are using AI to predict when product amounts could dwindle. As a result, Target's inventory availability has improved every year for the last four years, Prat Vemana, the executive vice president and chief information and product officer at Target, told Business Insider. AI can help retailers proactively adjust stock before disruption strikes rather than reacting to changing conditions, said Ajoy Krishnamoorthy, the CEO of inventory-management platform Cin7. That's especially critical today, Krishnamoorthy added, when factors like consumer behavior, inflation, and trade policy constantly impact supply chains. "AI thrives in this environment," Krishnamoorthy said. Traditionally, companies procure inventory, manage logistics, and analyze consumer behavior in silos, said Vidya Mani, an associate professor of business administration focused on technology and operations management at the University of Virginia. Teams do individual research, then come together to develop a strategy and execute it. "We no longer have that time," Mani said. "By the time you finish doing it, the world will have changed on you." Before Target started using AI to predict stockouts, the retailer relied on software-based applications, which didn't react or adapt to real-world changes as quickly as AI systems, according to Vemana. In fact, Target said in a blog post that it previously failed to catch half of its products that were out of stock because the technology they used thought that inventory existed when it actually didn't. Target changed how it managed inventory in 2023 with the introduction of Inventory Ledger, an internal tech system that tracks inventory changes across stores and uses AI to predict when products might be out of stock "even before it's obvious to team members or systems," Vemana said. Today, Target uses AI-driven inventory management for more than 40% of its product assortment, which is more than double when it started two years ago, Vemana said. With Inventory Ledger, algorithms pull in data like supply lead times, transportation costs, current inventory, and consumer demand. Some models are more accurate for frequently purchased categories, and others are better suited to discretionary purchases or clearance items, so Target uses both kinds. There are also models that detect items that are in the store but in the wrong aisle or shelf, Vemana said. Target has a demand forecasting tool that "makes billions of predictions each week about how many units of each item we'll need in stores and online," Vemana said. Together, all of these technologies guide employees' decisions about when, where, and how to reorder products and replenish stock. "Combining traditional software with AI helps us make smarter, faster decisions about inventory management and keep our stores stocked more consistently," Vemana said. One of Cin7's customers, ABC School Supplies, is also using AI to access real-time sales data, potential stock shortages, and supplier lead times, so it can "reorder proactively and avoid costly gaps in supply," Krishnamoorthy said. The AI-driven inventory management marks a big change from what ABC School Supplies did in the past. It used to copy and paste website orders into its system, make a pick-and-pack list on paper, walk that physical list over to the warehouse, and manually update inventory, Krishnamoorthy said The Home Depot is also taking an AI-based approach to inventory. In 2023, the retailer rolled out a machine-learning-powered app called Sidekick, which guides store workers to restock shelves and find products on overhead shelves, among other features. "It helps make sure products are on shelves for our customers, and it manages our on-hand accuracy, which feeds to our replenishment and selling platforms," a spokesperson for The Home Depot said. Krishnamoorthy said that in retail, "AI is exploding" as businesses move away from static planning to dynamic forecasts that anticipate demand and prevent stockouts. AI allows businesses to get more granular with their inventory data, avoiding stockouts at particular store locations or during peak times. Mani gave the example of cosmetics and how different stores will have varying product needs based on consumer demographics. "AI can figure out those patterns of baskets that are bought frequently in these different clusters," Mani said. "You don't need to feed it that contextual information." Target is also working on technology that predicts which colors and sizes of seasonal items will sell, so it can stock those items in specific stores "to meet local demand," Vemana said. At Walmart, AI-based inventory management systems use algorithms to make sure stores in warmer states have the right amount of pool toys and colder states stock enough sweaters, according to a press release on the company's website. If a particular item isn't selling on the East Coast but it's flying off shelves in the Midwest, algorithms flag that pattern so Walmart can reposition its inventory. As retailers continue to develop and deploy AI tools, Mani predicts the technology's use cases will advance over the next decade. Mani said that in two to three years, AI will likely flag stockouts without a person needing to walk into a store to confirm. Five years out, AI could automatically reorder inventory when algorithms detect that stock is running low. And in 10 years, AI would understand how macroeconomic events (like inflation) will change future consumer purchase behavior patterns and adjust inventory plans accordingly. "It will feed it into your rulemaking rather than reacting to the situation," Mani said. "You'll be living in a different world." Read the original article on Business Insider Sign in to access your portfolio
Business Insider
a day ago
- Business
- Business Insider
To avoid product shortages, big retailers are scrapping reactive methods for AI
The adage "too much, too little, just right" isn't just for Goldilocks and her porridge. Balance is also critical in inventory management, the part of the supply chain responsible for analyzing what consumers will buy and making sure products are in stock at the right place and the right time. Excess inventory can lead to markdowns or expired goods, but too little product can lead to shortages that impact a retailer's brand image, customer satisfaction, and bottom line. To prevent inventory from running out, big-box retailers such as Target, The Home Depot, and Walmart are using AI to predict when product amounts could dwindle. As a result, Target's inventory availability has improved every year for the last four years, Prat Vemana, the executive vice president and chief information and product officer at Target, told Business Insider. AI can help retailers proactively adjust stock before disruption strikes rather than reacting to changing conditions, said Ajoy Krishnamoorthy, the CEO of inventory-management platform Cin7. That's especially critical today, Krishnamoorthy added, when factors like consumer behavior, inflation, and trade policy constantly impact supply chains. "AI thrives in this environment," Krishnamoorthy said. From old methods to AI Traditionally, companies procure inventory, manage logistics, and analyze consumer behavior in silos, said Vidya Mani, an associate professor of business administration focused on technology and operations management at the University of Virginia. Teams do individual research, then come together to develop a strategy and execute it. "We no longer have that time," Mani said. "By the time you finish doing it, the world will have changed on you." Before Target started using AI to predict stockouts, the retailer relied on software-based applications, which didn't react or adapt to real-world changes as quickly as AI systems, according to Vemana. In fact, Target said in a blog post that it previously failed to catch half of its products that were out of stock because the technology they used thought that inventory existed when it actually didn't. Target changed how it managed inventory in 2023 with the introduction of Inventory Ledger, an internal tech system that tracks inventory changes across stores and uses AI to predict when products might be out of stock "even before it's obvious to team members or systems," Vemana said. Today, Target uses AI-driven inventory management for more than 40% of its product assortment, which is more than double when it started two years ago, Vemana said. With Inventory Ledger, algorithms pull in data like supply lead times, transportation costs, current inventory, and consumer demand. Some models are more accurate for frequently purchased categories, and others are better suited to discretionary purchases or clearance items, so Target uses both kinds. There are also models that detect items that are in the store but in the wrong aisle or shelf, Vemana said. Target has a demand forecasting tool that "makes billions of predictions each week about how many units of each item we'll need in stores and online," Vemana said. Together, all of these technologies guide employees' decisions about when, where, and how to reorder products and replenish stock. "Combining traditional software with AI helps us make smarter, faster decisions about inventory management and keep our stores stocked more consistently," Vemana said. One of Cin7's customers, ABC School Supplies, is also using AI to access real-time sales data, potential stock shortages, and supplier lead times, so it can "reorder proactively and avoid costly gaps in supply," Krishnamoorthy said. The AI-driven inventory management marks a big change from what ABC School Supplies did in the past. It used to copy and paste website orders into its system, make a pick-and-pack list on paper, walk that physical list over to the warehouse, and manually update inventory, Krishnamoorthy said The Home Depot is also taking an AI-based approach to inventory. In 2023, the retailer rolled out a machine-learning-powered app called Sidekick, which guides store workers to restock shelves and find products on overhead shelves, among other features. "It helps make sure products are on shelves for our customers, and it manages our on-hand accuracy, which feeds to our replenishment and selling platforms," a spokesperson for The Home Depot said. AI's predictive power for inventory planning Krishnamoorthy said that in retail, "AI is exploding" as businesses move away from static planning to dynamic forecasts that anticipate demand and prevent stockouts. AI allows businesses to get more granular with their inventory data, avoiding stockouts at particular store locations or during peak times. Mani gave the example of cosmetics and how different stores will have varying product needs based on consumer demographics. "AI can figure out those patterns of baskets that are bought frequently in these different clusters," Mani said. "You don't need to feed it that contextual information." Target is also working on technology that predicts which colors and sizes of seasonal items will sell, so it can stock those items in specific stores "to meet local demand," Vemana said. At Walmart, AI-based inventory management systems use algorithms to make sure stores in warmer states have the right amount of pool toys and colder states stock enough sweaters, according to a press release on the company's website. If a particular item isn't selling on the East Coast but it's flying off shelves in the Midwest, algorithms flag that pattern so Walmart can reposition its inventory. As retailers continue to develop and deploy AI tools, Mani predicts the technology's use cases will advance over the next decade. Mani said that in two to three years, AI will likely flag stockouts without a person needing to walk into a store to confirm. Five years out, AI could automatically reorder inventory when algorithms detect that stock is running low. And in 10 years, AI would understand how macroeconomic events (like inflation) will change future consumer purchase behavior patterns and adjust inventory plans accordingly. "It will feed it into your rulemaking rather than reacting to the situation," Mani said. "You'll be living in a different world."
Yahoo
6 days ago
- Business
- Yahoo
The Home Depot Names Angie Brown EVP and Chief Information Officer
ATLANTA, May 29, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today announced that Angie Brown has been named executive vice president (EVP) and chief information officer (CIO). As CIO, Brown will be responsible for all aspects of the company's technology strategy, infrastructure, cybersecurity and software development for The Home Depot's 2,350 retail stores and more than 790 branches, its supply chain facilities, store support centers and online systems. "Angie is an exceptional leader whose customer-first mindset consistently drives meaningful innovation across our business," said Ted Decker, chair, president and CEO. "Her strategic vision and deep expertise have been instrumental in transforming The Home Depot's interconnected experience, making home improvement more modern, more seamless and more convenient for our customers." A 27-year veteran of The Home Depot, Brown brings depth and breadth of experience, holding roles of increasing responsibility across virtually every aspect of the company's technology operations. She was most recently senior vice president of information technology, where she was responsible for delivering technology solutions for the company's merchandising, customer experience, online, customer, marketing, reliability engineering, pro and supply chain functions. Under Brown's leadership, The Home Depot has delivered transformative digital capabilities that enhance the customer and associate experience, including advancements in personalization, supply chain visibility and merchandising analytics. Brown replaces Fahim Siddiqui, who is leaving The Home Depot. "Fahim has been instrumental in improving our infrastructure across our stores, supply chain facilities and support centers," said Decker. "His leadership has been impactful in modernizing our technology foundation, and I want to thank him for his support to drive our strategies forward." ABOUT THE HOME DEPOT The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal 2025, the company operated a total of 2,350 retail stores and over 790 branches across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index. View original content to download multimedia: SOURCE The Home Depot Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
The Home Depot, Inc. (HD)'s Stock Continues To Fluctuate, Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer discusses. The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in America. It's a frequently discussed stock on Cramer's morning show. The CNBC TV host also talks about The Home Depot, Inc. (NYSE:HD) in his evening show, Mad Money. His recent Mad Money remarks saw Cramer comment that high interest rates sapped the life out of an otherwise strong gardening season that is a boon for the company. Cramer added that while The Home Depot, Inc. (NYSE:HD)'s shares typically don't fluctuate in response to interest rates, the rates' impact on gardening might be ushering in a change. Here are his latest thoughts: 'By the way, the retail group is total chaos today. I mean Home Depot's back down. . .' A home improvement store overflowing with a variety of products and supplies. Earlier this month on Mad Money, Cramer had commented: 'Now, not that long ago, we dropped in on a monster Home Depot store management meeting in Vegas where we heard about some great ideas for spring gardening season, which by the way, kicks into overdrive this weekend. Unfortunately, these big weeks for lawn and garden have been overshadowed by stubbornly high interest rates and no rate cuts from the Fed, not to mention tariff worries. Now I've watched this stock since it came public, and there are plenty of times that Home Depot doesn't actually march to the tune of interest rates, but instead is levered to repair and renovation. Overall, HD ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HD and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
The Home Depot, Inc. (NYSE:HD)'s Stock Continues To Fluctuate, Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer discusses. The Home Depot, Inc. (NYSE:HD) is the largest home improvement retailer in America. It's a frequently discussed stock on Cramer's morning show. The CNBC TV host also talks about The Home Depot, Inc. (NYSE:HD) in his evening show, Mad Money. His recent Mad Money remarks saw Cramer comment that high interest rates sapped the life out of an otherwise strong gardening season that is a boon for the company. Cramer added that while The Home Depot, Inc. (NYSE:HD)'s shares typically don't fluctuate in response to interest rates, the rates' impact on gardening might be ushering in a change. Here are his latest thoughts: 'By the way, the retail group is total chaos today. I mean Home Depot's back down. . .' A home improvement store overflowing with a variety of products and supplies. Earlier this month on Mad Money, Cramer had commented: 'Now, not that long ago, we dropped in on a monster Home Depot store management meeting in Vegas where we heard about some great ideas for spring gardening season, which by the way, kicks into overdrive this weekend. Unfortunately, these big weeks for lawn and garden have been overshadowed by stubbornly high interest rates and no rate cuts from the Fed, not to mention tariff worries. Now I've watched this stock since it came public, and there are plenty of times that Home Depot doesn't actually march to the tune of interest rates, but instead is levered to repair and renovation. Overall, HD ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HD and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
