Packworks, a local startup specializing in business-to-business (B2B) solutions for neighborhood stores, is harnessing the power of artificial intelligence (AI) and machine learning to assist neighborhood store owners in the Philippines with informed decision-making in stock management.
Using time series forecasting, Packworks leverages its dataset of neighborhood store transactions to analyze and predict future trends in sales volumes across various locations in the country.
The company’s predictive model covers all product categories sold in over 200,000 neighborhood stores nationwide, utilizing advanced machine learning algorithms to deliver accurate and reliable predictions that align with real-time data trends.
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AI and machine learning
Packworks gathers data from its wide network of neighborhood stores, which utilize the Sari.PH Pro application. This application provides store owners with access to tools for pricing, inventory management, sales and revenue tracking, as well as working capital loans.
By utilizing AI and machine learning, Packworks aims to enhance inventory planning processes for neighborhood store owners. The predictive model enables retailers to gain valuable insights into consumer preferences and buying patterns, leading to optimized product assortments, reduced stockouts, improved customer satisfaction, and increased profitability.
“With access to Packworks’ extensive and reliable dataset of neighborhood store transactions, we hope to equip our micro-entrepreneurs with the means to optimize their operations and drive growth in the highly competitive retail market,” Arch Tesorero, manager, Advanced Analytics and Insights Manager at Packworks.
Business intelligence tool
While the model serves as a valuable tool, Packworks emphasizes that it should be used as a supplementary resource and not the sole determinant for inventory planning.
Last year, Packworks introduced Sari IQ, a business intelligence tool that provides real-time and historical information on consumer expenditures. Sari IQ can be customized to evaluate various product categories sold in compact retail setups. This tool enables retailers and multinational brands to gain full visibility into neighborhood store operations, allowing them to extend their offerings to a broader customer base. By analyzing data through the platform, they can make data-driven decisions to boost the sales of neighborhood store owners by understanding and predicting consumer demand within specific areas.