The apparel industry is discarding its legacy of being a low tech industry and is joining other industry sectors in leveraging the power of technology to reduce lead times, tighten inventory management and reduce waste.

Inditex, particularly through its brand Zara, is utilizing artificial intelligence (AI) to enhance demand forecasting and inventory management significantly.  Walmart has achieved an impressive 95% accuracy rate in its demand forecasting, showcasing the transformative impact of AI on driving efficiency in supply chain operations. 

By using AI-powered demand forecasting models, brands including Adidas are able to anticipate customer demand more accurately, enabling the company to optimize its inventory levels and reduce excess stock. Mango also is leveraging a growing number of AI applications, including a platform that facilitates communication so that teams can more precisely manage inventory and compliance.

Here are the six key roles AI is playing in predicting demand and supply chain visibility – what critical problem each solves.