Magdalena Ubik and Lennard Molenkamp explain how the fashion industry deals with the challenge of various store features and customer preferences, and what the "self-fulfilling prophecy" means in the fashion industry.
Go to videoIn the fashion industry, differentiating between allocation and replenishment is a challenge as each store has unique attributes and customer preferences.
The traditional approach to inventory management often leads to the so-called self-fulfilling prophecy, where low product availability limits the possibility to sell. This is particularly problematic in the case of smaller stores that have the potential to increase profitability but are limited by low product availability.
Using AI to generate sales forecasts is a solution that can help optimise inventory management. AI is able to analyse historical sales data and identify patterns to better predict product popularity.
