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【2020 Application Example】 Textile Industry Challenges Fast Fashion, AI Inventory Forecast Reduces Error Rate by 35%

Fast fashion in clothing, small quantities, diverse styles, short delivery times

The textile industry faces the impact of the fast fashion trend among clothing brands, affecting the entire supply chain. Global brand channels are promoting zero inventory, short delivery periods, and small-scale customization. Balancing production time, quality, and cost is challenging. Often, there is a discrepancy between ODM predictions and actual demands from brand owners, causing issues in material management and excessive inventory costs.

Due to inaccurate demand forecasts from customers, it often leads to difficulties in material preparation. Excessive materials can increase leftover stock, while insufficient materials may delay delivery. This project aims to establish an AI-based material demand forecast model specifically for major domestic manufacturers.

AI calculates sales trends to further predict demand

The advisory team collaborates with Shentong Information Technology to mainly use the LSTM algorithm for the AI foundation. The goal is to predict the next sales cycle based on past sales records, utilizing simple regression to complex 'Time Series Analysis' in statistics. Usually, a period's sales volume closely relates to the previous period's, unless there is a major event, in which case it would typically follow a pattern.

There are various patterns of sales volume forecasts, including revenue, profit, customer counts, park visits, sales number/amount, etc. This will take the example of a factory's monthly shipment batches, using the LSTM model to predict the next month's shipment batches.

Material Demand Analysis Execution Framework

▲Material Demand Analysis Execution Framework

This project plans to establish a customer-specific material demand AI prediction model. During the planning phase, three different machine learning algorithms were used to prototype the AI model:

 Logistic Regression Algorithm

 Gradient Boosting Algorithm

 Deep Learning Algorithm

Material Demand AI Prediction Model Planning

▲Material Demand AI Prediction Model Planning

Demand forecast error reduced from a maximum of 70% to 35%, significantly reducing inventory volumes

This project estimates customer demands, required material types, supply sources, and customer delivery dates using machine learning to establish a primary material procurement prediction system. It reduces the prediction error of demand from the top five international customers from a high of 70% to 35%, significantly lessening the amount of inventory needed.

「Translated content is generated by ChatGPT and is for reference only. Translation date:2024-05-19」

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【導入案例】無人智慧販賣機 黑沃咖啡一分鐘打造精品咖啡
Unmanned Intelligent Vending Machines - Black Wo Coffee Creates Boutique Coffee in a Minute

Technology also carries the aroma of coffee Situated on Gaogong Road in the Southern District of Taichung, the original Black Wo Coffee store covers a space of 28 ping, filled with the scent of coffee mixed with cultural creativity and technology Since its establishment in October 2016, Black Wo Coffee has expanded to 7 directly managed stores and 28 franchise stores across Taiwan Among the 15,000 coffee sellers nationwide, Black Wo Coffee has risen uniquely through the use of AI technology to create an unmanned intelligent vending machine that brews exquisite and aromatic coffee in just one minute Black Wo Coffee's physical store creates a culturally creative and fashionable atmosphere Image Black Wo Coffee official website According to the International Coffee Organization ICO, Taiwanese people consume 285 billion cups of coffee annually, with the market size exceeding 70 billion NT dollars Ambitiously, as per Starbucks' survey, by 2018 the overall Taiwanese coffee market reached 72 billion NT dollars and rose to 90 billion by 2020 Over the last five years, the Taiwanese coffee market has expanded annually by about 20, showing remarkable growth potential Coffee demand presents incredible business opportunities, growing at a rate of 20 annually With coffee now being a symbol of fashionable consumption in Taiwan, aside from first-tier coffee shops like Starbucks and Louisa, there are convenience stores like 7-11 and FamilyMart, and numerous boutique coffee houses scattered through the streets and alleys How to capture consumer attention and stand out in the 'red ocean' of the coffee market requires flexibility and creativity, understanding consumer needs and tastes, which are also essential for cultivating brand loyalty Beyond physical storefronts, Black Wo Coffee is also actively developing digital channels Its ecommerce platform includes the official website, PChome, momo, and group-buying hosts, providing multiple channels and ensuring steady growth in performance Even so, the founder of Black Wo Coffee, Lin Pei-ni, continually seeks innovation Due to the passive and scattered situation with franchise stores in the first three years, it was difficult to actively grasp market trends and the company noticed a certain lag in communicating with consumers and keeping up with brand dynamics, making it challenging to cultivate loyal brand advocates Artisan boutique coffee is deeply beloved by consumers Image Black Wo Coffee official website Through the AI Eagle Eye System, market intelligence costs are significantly reduced To address the dual challenges of not being able to quickly capture market trends and high market research costs, Black Wo Coffee introduced the AI Eagle Eye System in 2020 to scout market intelligence By comprehensively crawling articles from social websites, news platforms, and forums, automatically tagging, and suitably filtering, this system scanned 4,858 articles using 24,290 keywords, enabling precise insights into consumer preferences at minimal costs At the same time, after launching new products, not only can franchise stores be notified promptly, but the acceptance level of consumers can also be assessed through social platforms It serves as a reference for whether to promote aggressively Through the collection of data and analysis by AI algorithms, consumer-preferred flavors are selected, reducing the risks associated with new launches and increasing the success rate of new products Therefore, in 2021, Black Wo Coffee boldly explored new markets by introducing the world's first AIoT smart coffee innovative concept in collaboration with Pxmart for the first 'Intelligent Supermarket', integrating Black Wo Coffee to create an unmanned intelligent hand-drip coffee machine for consumers to enjoy a unique flavor experience Insight into consumer tastes leads to the creation of AIoT Unmanned Intelligent Vending Machines Taiwan's first Pxmart 'Intelligent Supermarket' in Neihu, Taipei introduces the world's first AIoT smart coffee concept store, able to interact with the AI smart coffee vending machine, AI hand-washing coffee machine, and AI vacuum cold brew machine through a mobile app, meeting three different coffee technology experiences in one place The self-service area features the only unmanned intelligent coffee vending machine in Taiwan that uses chilled milk to make milk foam, selecting Black Wo's 5A grade milk, and completing the payment, grinding, and brewing all within one minute The first Pxmart 'Intelligent Supermarket' was established on Ruiguang Road in Neihu District, Taipei Image Pxmart FB fan page The Pxmart Intelligent Supermarket features an AI smart coffee vending machine, which is operated using an app to enjoy aromatic coffee Image Pxmart FB fan page Now, with the addition of AI technology elements, drinking coffee is not just about having coffee it also brings more brand-new tech experiences and conveniences to consumers「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【導入案例】屈臣氏導入insider AI 技術平台 加強客戶體驗提升轉換率
Watsons Introduces Insider AI Technology Platform to Strengthen Customer Experience and Enhance Conversion Rates

Watsons Taiwan, holding the leading position in physical chain drugstores in Taiwan, has continued to expand its digital transformation Since establishing Watsons' online store in 2014, apart from actively developing the e-commerce market, the company has significantly enhanced the online and offline OO omni-channel consumer experience by integrating Insider AI technology This integration utilizes extensive in-store sales data, consumer behavior analytics, and AI-driven personalized recommendations delivered at optimal times to increase conversion rates OO Online Plus Offline Boosts Customer Conversion Rate, Driving Business Growth Watsons Group, a global retail giant, has been deeply rooted in Taiwan for the past 30 years specializing in retail, store operation SOPs, and retail supply chain optimizations However, managing an e-commerce platform only began a few years ago Unlike the commonly discussed 'O2O' online to offline in retail, Watsons adopts 'OO', which is offline plus online Currently, about 20 of customers who order at Watsons' online store choose to pick up their goods at physical stores Proper service at these stores acts as a catalyst for converting online-originated customers into additional in-store revenues According to statistics, Watsons has nearly 6 million members with a substantial volume of transactions in physical retail outlets However, with over 12 million active app users and nearly 3 million app downloads, the level of member activation is still lacking By utilizing AI technology for data integration, such as providing optimized product recommendations through AI, Watsons could significantly enhance its customer conversion rate from offline to online consumption or guide online customers to in-store purchases, thereby driving business growth Homepage Personalized Recommendation Module Recommended for You Originally, Watsons used the e-commerce solution Hybris from the global system integrator SAP, which was more geared towards simple display and sales, lacking sufficient technical resources to handle enhancing the consumer experience Insider is a marketing technology martech company with offices in 25 cities globally, including a professional consultancy team in Taiwan that provides localized digital solutions Committed to optimizing digital marketing effectiveness with technology, Insider helps brands drive digital growth and is a partner to many domestic and global enterprises including Watsons, Carrefour, IKEA, Lenovo, Adidas, Sinyi Realty, and Singapore Airlines Insider has shown outstanding performance in improving customer conversion rates, repurchase rates, and advertising ROI through AI technology Watsons introduced Insider's AI algorithms primarily for enhancing customer experience, using AI's personalized and integrated marketing modules to elevate the customer interaction and improve e-commerce conversion rates Additionally, AI functionalities search for the right customers, expanding new customer groups and providing a superior shopping experience Page-specific Discount Code Copy Feature Recommended Based on Customer Behavior Insider has developed various technological modules that can be applied in different customer scenarios to enhance conversion rates Currently, Watsons' e-commerce websiteAPP utilizes different Insider modules, with some parts also tailored based on Watsons' unique attributes such as necessities repurchase, app navigation, and scratch card discounts, designing conversion kits or personalized recommendation modules for specific customer situations within Watsons Introduction of WebAPP Personalized Recommendation and Conversion Module Kits Effectively Increases Conversion Rates by 10 Watsons has already introduced the first four of the planned modules, with a full rollout of all five modules expected by 2021, aiming to enhance both online and offline cross-sales and thereby comprehensively improve Watsons’ overall e-commerce and retail performance 1 Web RecommendationConversion Suit 2 App RecommendationConversion Suit 3 InStory for eCommerce 4 Mobile App Template Store 5 Insider Architect Watsons has currently implemented the AT module, with completion expected by the end of 2021 Since partnering with Insider in 2020, Watsons has introduced WebAPP personalized recommendation and conversion module kits, effectively increasing transaction conversion rates by an average of over 10, with ROAS Return on Ad Spend averaging over 10 Watsons also hopes to integrate POS sales records into Insider's CDP Customer Data Platform to achieve a more optimized OO interaction mechanism and complete an all-channel consumer experience By combining Insider's AI technology, Watsons' self-operated official website, supplemented by extensive in-store sales data and member consumer behaviors, along with AI's personalized recommendations delivered at optimal points, the technology will significantly boost consumer transactions online and interactive opportunities in-store Utilizing new technologies in the competitive e-commerce sector allows Watsons to maintain a unique leadership position in the beautyhealth category in the consumers' minds「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【解決方案】佐翼科技無人機導入高爾夫球場域 可節省一半人力
Droxo Tech Applies Drones in Golf Courses to Reduce Manpower by Half

For most golf courses, the operations and management is a headache "Golf courses are selling turf and need to be properly taken care of," a golf course manager bluntly pointed out Facing the market pain points of labor shortage, aging population and high cost, the use of AI drones for pesticide spraying and pest control will reduce labor costs by more than half and greatly improve the overall operational efficiency At noon in early summer, an AI drone is slowly taking off at the Taipei Golf Club in Taoyuan Its main task is to test AI drone fertilizing and pesticide spraying on the golf course In fact, drones of Droxo Tech, the company performing this task, are widely used for fertilization, pesticide spraying, and pest and disease control for rice, bananas, and tea trees For golf courses with turfs that often cover tens to hundreds of hectares, AI drones are needed to assist in turf maintenance Data collection, development of pesticide spraying AI models, and multispectral image analysis and testing will be carried out in the current stage In the future, large-scale technology implementation and verification will be carried out to set an example for applying drones to golf courses Using AI drones to fertilize and spray pesticides can reduce the manpower required by half The traditional way of maintaining the turf in golf courses is to carry spray buckets or drive spraying vehicles to spray areas one by one "Domestic golf courses began to plant ultra-dwarf Bermuda grass in 2001 This grass species prefers a cool climate and is not suitable for Taiwan's hot and humid weather" Droxo Techrsquos CEO further pointed out that to prevent turf from pests and diseases, pesticide spraying is necessary For an 18-hole golf course, it is equivalent to spraying pesticides once a week, and the T-ground and fairways are sprayed every two months For golf courses, spraying pesticides is time-consuming and labor-intensive It is important to note that large-scale spraying will increase the risk of personnel poisoning and increase the amount of pesticide used Benefits of applying agricultural drones to golf courses According to Droxo Techrsquos research, golf course pests include Spodoptera litura, which comes out at night to look for food, so pesticide spraying must be carried out in the evening According to the traditional method, pesticide spraying requires two vehicles and three personnel for a total of 45 hours If AI drones are used for fertilizing and pesticide spraying, it only takes one operator to spray 08 hectares of land in 20 minutes, saving about two-thirds of the manpower and reducing operating costs by about 30 Using AI drones to fertilize and spray pesticides on golf courses can reduce the manpower required by half In addition to the significant benefits of using agricultural drones for golf course turf maintenance, Droxo Tech also specially introduced AI multispectral image recognition for NDVI Normalized Difference Vegetation Index analysis "The so-called multispectral is to direct light with different wavelengths on the turf, and the reflected images are collected for analysis" Droxo Tech CEO Liu continued to explain that each plant absorbs light with different wavelengths, so multispectral imaging can determine the growth status of grass species At the same time, combined with AI image recognition, the distribution of pests and diseases can be accurately detected, and the amount of pesticide used is determined on this basis Cross-domain collaboration to build a multi-source turf image databasenbsp Using AI multispectral image recognition technology, Droxo Tech will collect visible light, multispectral, thermal images, and hyperspectral images to establish a multi-source turf image database to fully understand the growth cycle of Bermuda grass Droxo Tech has accumulated rich experience in agricultural AI drone pesticide spraying , but there are still many problems that need to be overcome to implement AI solutions in golf courses For example, it is necessary to establish a new pesticide spraying model and test flight methods, especially the application of multispectral image recognition PoC is not difficult, but actual implementation requires more test evidence, repeated inferences, and collaboration with plant experts This part must rely on the cross-domain integration of legal entities such as the Institute for Information Technology III, gathering more fields for verification, and creating a paradigm before it can be more widely adopted by golf courses There are not many international cases on the application of AI drones in golf courses During the verification process, it is not yet known whether it can be quickly copied to the next golf course However, Droxo Tech CEO Liu believes that through cross-domain collaboration, clearly defining the problems and listing them one by one, supply and demand parties can reach a consensus, propose solutions to each problem, and seek cooperation with internal and external resources Only then will we be able to gradually achieve the goal of making golf courses smarter and smoothly assist the industry with transformation Zuoyi Technology's CEO, Liu Junlin 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」