Detego eliminates out-of-stock situations with new AI solution

Detego eliminates out-of-stock situations with new AI solution
New merchandise management software is hosted on the Microsoft Azure cloud

Rebecca Gibson |


Microsoft partner and retail software provider Detego has successfully eliminated more than three million stock shortages during various pilots and retailer projects by deploying merchandise management software powered by artificial intelligence (AI).

Built on the Microsoft SQL Server and hosted on the Microsoft Azure cloud, Detego’s AI software allows retailers to use internet-enabled in-store devices to connect with tiny radio-frequency identity tags on the products. This allows them to monitor individual products as they are moved from the warehouse to stores in real time so they can avoid out-of-stock situations. Results from pilots showed that retailers achieved almost 100% accuracy and high product availability when they used internet of things technology and the AI-powered Detego suite, compared to an industry average of around 70% in most fashion retail businesses.

Detego’s AI software is also being used to analyse vast amounts of data and uses machine learning to better understand the behaviour of several million consumers, deriving insights and actionable recommendations for retailers.

Analysis shows that the vast majority of shoppers still prefer to visit a store, particularly when it comes to fashion. However, a growing proportion of consumers are switching to other omnichannel options, including shopping online, via smartphones, or click-and-collect from nearby stores.

“Even with all the advances of the digital age, more than 80% of retail sales happen in bricks-and-mortar stores, and in the fashion industry, customers still want to walk into shops to see, touch, and try on different outfits,” said Uwe Hennig, CEO of Detego. “While customer motivations for entering stores are largely the same as they were 20 years ago, their expectations are much higher. Customers who can find anything they want on their smartphones in seconds expect similar instant gratification in stores. They want the items they see online to be available in the store and in their preferred size, style and colour.”

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