The Department of Science and Technology (DOST) has provided Packworks with a P 3.5 million research grant to develop an (artificial intelligence) AI-powered inventory management system for over 1.3 million sari-sari stores (neighborhood stores) across the Philippines.
The funding comes from from the DOST-Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) Startup Grant Fund Program. Packworks will advance its P1.5 million initiative to create a machine-learning precision marketing model.
Packworks is a Filipino startup that offers a business-to-business (B2B) fast-moving consumer goods (FMCG) marketplace for sari-sari stores.
“Our mission at DOST is to build an integrated, inclusive and sustainable startup ecosystem. We hope to support startups at every stage of development, from formation to validation, until growth,” said DOST Secretary Renato Solidum Jr.
Data-driven insights and targeted strategies
The SGF Program supports early-stage technologies, aiming to convert them into market-ready products. Since its inception in July 2022, it has supported 123 startups across various sectors.
Sari-sari stores, crucial for providing daily essentials to about 94% of Filipinos, face challenges such as poor financial management and ineffective promotional strategies. The new AI-driven tool will offer customized recommendations on sellable items and promotions, potentially enhancing business efficiency and growth.
“Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion,” said Andoy Montiel, chief data officer and project lead, Packworks.
The initiative is part of the broader effort to support micro, small, and medium-sized enterprises (MSMEs), which constitute 99.5% of all business establishments in the Philippines. The AI capability will be integrated into Packworks’ Sari.PH Pro app, benefiting its network of over 270,000 sari-sari stores.