Why Inventory Squeezes Profits? — AI Data Announces "AI RetailBooster on IDX" AI Optimization Model to Reconstruct Retail Business with "Demand and Price Optimization"

AI Data Inc. (Head Office: Minato-ku, Tokyo; President & CEO: Takahito Sasaki; hereinafter "AI Data"), a company specializing in the utilization of corporate data and AI, has launched a new "Demand and Price Optimization Solution" as part of its "AI RetailBooster on IDX" service, leveraging its optimization AI "AI Komei on IDX". This solution specifically targets the "inventory structure," which is a primary cause of declining profitability in the retail and distribution industries.

The main objective of this solution is to holistically optimize demand forecasting, pricing strategies, and inventory management, thereby fundamentally restructuring the profit mechanisms of the retail sector.

Background: Why Retailers Don't Make Profits Even When They Sell

Currently, the retail industry faces several deepening challenges:

Simultaneous occurrence of excessive inventory and stockouts Profit pressure due to markdowns Increase in disposal losses Intensification of demand fluctuations

Despite maintaining or expanding sales, many companies experience:

Declining profit margins Increasing inventory costs

This situation has become normalized, leading to a "selling well but not profiting" structure.

The Core of the Problem: Inventory is the "Center of Management," Not Just a "Result"

In the retail business, inventory is more than just an outcome. It is the culmination of various management decisions, including:

Which products to procure At what price to sell When to replenish stock

However, the current situation often involves:

Mismatches between demand forecasts and procurement Lack of real-time adjustments in pricing strategies Optimization confined to individual departments

This creates an "inventory structure that pressures profits."

Solution: Demand and Price Optimization AI "AI RetailBooster on IDX"

"AI RetailBooster on IDX" supports retailers' decision-making processes through AI, achieving optimized inventory, pricing, and procurement.

1. Data Integration (IDX)

POS data / Inventory data / Procurement and sales data / Customer and purchasing behavior data are consolidated into IDX, then comprehensively analyzed and visualized by AI Komei.

2. AI Analysis and Forecasting

Demand forecasting / Sales trend analysis / Product turnover rate analysis AI analyzes sales trends and demand patterns based on accumulated data.

3. Optimization Engine

Optimization analysis of inventory levels Analysis of pricing strategies and recommendation of optimal price ranges Proposal for optimizing procurement plans AI supports and proposes decision-making for maximizing profits.

4. AI PMO (Execution and Operation Optimization)

AI prepares progress management documents for inventory and pricing strategies. Regular generation and analysis of KPI reports. Continuous support for improvement cycles (Loop).

This realizes "retail management where AI continuously supports business decisions." It achieves "retail management where optimization continuously rotates."

Expected Benefits of Implementation

Optimization of inventory and reduction of unnecessary excess stock Reduction of disposal losses Improvement in the accuracy of markdown strategies Support for decision-making aiming for both sales and profit Contribution to cash flow improvement

*Effects may vary depending on implementation scale and usage.

Transforming inventory from a "cost" into a "profit-generating asset."

Message

Until now, the retail industry has grown through:

Sales expansion Store operational capabilities

However, the era has arrived where "companies that can optimize inventory and pricing" will win. Inventory is a management domain that must be optimized.

Future Developments

Following the manufacturing, logistics, and retail industries, AI Data will expand "Optimization AI × AI PMO" to various other sectors, including:

Construction Finance Healthcare Energy

"All industries are optimization problems."

About AI Data Inc.

Company Name: AI Data Inc. Established: April 2015 Capital: 100 million JPY (Capital reserve: 1.525 billion JPY) President & CEO: Takahito Sasaki Location: 4F Metro City Kamiyacho Building, 5-1-5 Toranomon, Minato-ku, Tokyo URL: https://www.aidata.co.jp/

AI Data Inc., founded on data and intellectual property infrastructure, has been engaged for over 20 years in businesses that protect and utilize corporate and individual data assets. Trusted by over 10,000 companies and more than 1 million customers, its "Data Ecosystem Business," which encompasses data sharing, backup, recovery, migration, and erasure, has won the BCN Award for 17 consecutive years as the top-selling product. In data infrastructure, it provides IDX cloud data management and recovery services, and has earned high acclaim in the legal field through forensic investigations and evidence disclosure services recognized by the Minister of Economy, Trade and Industry.

On the other hand, in intellectual property infrastructure, it supports IP management and monetization through its group company's patent search and application support system "Tokkyo.Ai" and the establishment of an IP marketplace that enables patent trading. Integrating these, it offers a fusion platform of data and intellectual property powered by generative AI "AI Komei TM."