Will AI Solve Ecommerce's Pandemic Inventory Woes?

Ecommerce and Amazon sellers who have navigated a challenging few years may find relief in the near future. According to a recent report from Menlo Ventures, generative AI is poised to break down data silos and streamline workflows across the supply chain, ushering in a new period of collaboration that could significantly benefit online retailers.

The upheaval caused by the pandemic exposed vulnerabilities in the supply chain as freight prices skyrocketed before crashing back down. Startups and stalwarts alike struggled to adapt, with high-profile bankruptcy filings from the likes of Convoy and Yellow. But this tumultuous period also revealed the pressing need for better data-sharing and streamlined processes between supply chain stakeholders.

Enter generative AI. The technology is particularly well-suited to making sense of the complex, siloed data that exists throughout a product's journey from factory to consumer. By analyzing information from manufacturers, shippers, warehouses, and more, AI can identify opportunities for optimization that have previously been hidden from view.

Investors are taking notice of startups facilitating this supply chain collaboration. In manufacturing, companies like CoLab are enabling real-time design collaboration between engineers, suppliers, and designers. Copia Automation brings modern software development practices to cumbersome factory control systems. And Squint's augmented reality tools powered by generative AI assist workers with machinery operation and maintenance.

For ecommerce sellers, the benefits could be significant. AI solutions are helping manufacturers and distributors better serve retail customers through optimized rebate agreements, improved product matching, and streamlined component procurement. In the food industry specifically, multiple startups are digitizing B2B ordering between suppliers and distributors.

The notoriously fragmented shipping and logistics sector is also seeing an influx of AI aimed at connecting shippers, brokers, and carriers. Parade is using the tech to automate freight broker bidding and manage the barrage of carrier communications. Portchain tackles a similar challenge for ports and ocean freight.

Retailers still saddled with excess pandemic inventory have a potential lifeline in Ghost, a B2B platform for liquidating unsold goods. And as privacy changes like those implemented by Apple upend traditional digital marketing, companies such as Nautical Commerce, Convictional, and Canal are helping retailers and brands derive more value from shared customer data.

The recent volatility in the supply chain appears to be stabilizing, paving the way for a new era driven by generative AI and increased collaboration. For ecommerce and Amazon sellers, the implications are considerable: improved efficiency, reduced disruptions, and a greater capacity to meet customer needs. As this trend unfolds, online retailers should pay close attention to the developments taking shape. The companies and technologies highlighted here offer a glimpse into the future of a more harmonized, data-driven supply chain.

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