How To Leverage AI To Conquer Price Fluctuations In Retail And CPG
Jan 06, 2025 - forbes.com
The article discusses the challenges faced by retailers and consumer packaged goods (CPG) companies due to fluctuating commodity prices and increasing consumer price sensitivity. To maintain profitability in this volatile environment, businesses are turning to advanced technology and data-driven strategies. Key strategies include leveraging AI for dynamic pricing and promotions, optimizing product portfolios to maintain healthy margins, and enhancing supply chain agility through technologies like digital twins and IoT. These approaches enable companies to respond quickly to market shifts, manage margin pressures, and provide ongoing value to customers.
The article also highlights the obstacles businesses face when adopting AI-driven tools, such as data quality issues, security and privacy concerns, infrastructure readiness, skill gaps, and resistance to change. By addressing these challenges, companies can effectively integrate AI and advanced technologies, positioning themselves for sustainable success in the dynamic retail and CPG landscape.
Key takeaways:
Dynamic pricing and AI-driven strategies are essential for retailers and CPG companies to remain competitive and manage margin pressures in a volatile market.
AI and predictive analytics can optimize product portfolios by identifying high-margin products and streamlining offerings to maintain profitability.
Supply chain agility is crucial, and technologies like AI and digital twins help businesses respond quickly to market changes and optimize decision-making.
Adopting AI-driven tools requires overcoming challenges such as data quality, security, infrastructure readiness, skill gaps, and change management.
