”The global climate disaster can be reduced if one-third of all food produced is not wasted, costing the global economy close to $940 billion each year and increasing global greenhouse gases by 10%.”
Need-based distribution of food can advantageously use AI to reduce food waste.
In order to reduce food waste, the automatic storage systems must be able to deliver products in single pieces, which requires us to divide packages, whereby the retail store’s UNTS AI inventory management and product ordering module can adapt the delivery based on an AI algorithm calculation, which indicates the current previous sales in a predefined period.
The AI storage system will be able to calculate increases or decreases in the number of products sold, where in particular an AI-regulated order of short-lived food will be able to reduce food waste and thus also the consumer’s expenditure on food.
The UNTS AI inventory management and product ordering module’s algorithm will be able to adjust the order status of each item in real time, based on sales data in a previous period as well as other factors that influence the sale of a product, e.g. season, weather, economy etc.
A change in the supplier distribution, where products can be delivered as a break up colli unit (collo), will entail additional costs, this cost will be able to be reduced with automatic warehouse robots, thus the total gain will be significantly greater and can affect the global economy and provide significant global environmental improvements.
Benefits by use of UNTS AI inventory management and product ordering module:
The UNTS AI inventory management and product ordering module offers a sophisticated solution to the pressing issue of food waste. By leveraging AI technology, UNTS revolutionizes the distribution process, leading to numerous benefits:
• AI-adapted production: With AI, food producers can adjust the purchase of raw materials to their needs and adapt production according to retrospective consumer data.
• AI-powered inventory management: UNTS AI’s inventory management system utilizes artificial intelligence to optimize inventory, reducing the risk of overstocks and understocks. This leads to improved efficiency, reduced waste and increased profitability.
• Smart Product Ordering: The Product Ordering module uses AI algorithms to predict demand and automatically generate purchase orders, ensuring the right products are available at the right time. This eliminates manual ordering processes, saves time and reduces the risk of stockouts.
• Reduced food waste: By optimizing inventory and ordering, UNTS AI helps companies significantly reduce food waste, which contributes to a more sustainable food supply chain. This aligns with the increasing consumer demand for environmentally responsible practices.
Precision in Distribution: AI enables need-based distribution, ensuring that products are delivered in optimal quantities based on demand. This precision reduces overstocking and minimizes the likelihood of excess inventory leading to waste.
Adaptive Ordering: Through analysis of previous sales data and consideration of external factors such as seasonality and economic trends, the AI algorithm dynamically adjusts order quantities in real time. This adaptability optimizes inventory levels, reducing the risk of spoilage and waste.
Efficient Product handling and distribution: Automatic storage systems equipped with AI robot features facilitate breaking down packages and the delivery of products into individual units. This streamlines retail inventory management processes and minimizes inventory and product wastage, further reducing costs and ensuring fresh products for the consumer.
Cost Reduction: While transitioning to a system where products are delivered in smaller units may initially incur additional costs, the integration of automatic warehouse robots helps offset these expenses. Overall, the efficiency gains achieved through AI-driven inventory management lead to significant cost savings over time.
Environmental Impact: By minimizing food waste throughout the supply chain, UNTS AI contributes to environmental sustainability. Reducing waste means conserving valuable resources, lowering greenhouse gas emissions associated with food production, and alleviating pressure on landfills. These environmental benefits have far-reaching implications for global sustainability efforts.
In summary, the UNTS AI inventory management and product ordering module not only optimizes operational efficiency and reduces costs but also plays a crucial role in combating food waste and promoting environmental stewardship on a global scale.