IBM has announced a collaboration with SAP to develop AI-based solutions aimed at enhancing supply chain, finance operations, sales, and services in the consumer packaged goods (CPG) and retail sectors. This partnership focuses on using generative AI to address direct store delivery and product portfolio management processes.
The collaboration builds on the integration of IBM’s Watson AI and data platform into SAP solutions. IBM Consulting and SAP are currently working with CPG clients globally to create secure and scalable AI solutions.
The solutions under development intend to address several key areas:
- Transportation Planning and Execution: IBM plans to incorporate external data like weather and traffic into the SAP Direct Distribution solution. The application of AI aims to help CPG companies identify optimal store delivery routes, with real-time updates.
- Store-Level Assortments: IBM aims to use AI and generative AI to develop store-specific assortments. These will be based on individual store market dynamics, past sales patterns, anticipated demand, and product mix.
- Automating Order Settlement: Addressing the complexities of direct store delivery, IBM and SAP plan to develop solutions for automating transaction settlements. This involves using automation and intelligent workflows.
The solutions will be built on the SAP Business Technology Platform and integrated with Watson through APIs. This integration is expected to enrich user experience for warehouse planners, frontline delivery associates, and client representatives through the Watson Assistant’s conversational search capabilities.