Dutch FMCG Sector Boosted by AI Study Highlights Key Benefits and Challenges

How AI is Revolutionising Inventory Management in the FMCG Sector

Wittenborg student turned Admissions Administrator, Maulik Barot, has shed light on how Artificial Intelligence (AI) is transforming inventory management in the fast-moving consumer goods (FMCG) sector in the Netherlands. Through his MBM (Master of Business Management) thesis, Barot explores how AI is helping companies optimise efficiency, reduce costs and improve decision-making.

“I worked in the logistics area for an FMCG company in the Netherlands during my studies,” Barot shared. “I noticed many challenges, like warehouse management, that could be solved with AI. It got me curious, and I began researching solutions online. I realised many companies weren’t using these technologies yet because they’re still so new and there’s not much written about them.”

What the Study Found

Barot’s study is based on interviews with 12 mid-level managers in the Dutch FMCG industry, who shared both the opportunities and hurdles associated with AI integration.

Barot’s research highlighted several key advantages of integrating AI into inventory management systems. He mentioned that AI tools analyse past and real-time sales data to predict customer needs more accurately, minimising overstocking and stock-outs. Automated systems dynamically adjust inventory levels, ensuring availability while reducing excess. Furthermore, real-time tracking and analytics empower managers to make quicker, smarter decisions, improving overall operational efficiency.

The study found that these advancements lead to measurable benefits, such as increased inventory turnover rates, lower storage costs and improved customer satisfaction.

Real-World Insights from the Field

Managers reported that AI automation saved time and reduced costs by handling routine tasks like inventory tracking and stock replenishment. However, they also noted challenges in integrating AI with older systems and training staff to adapt to the technology.

Barot further concluded that while AI has immense potential to revolutionise inventory management, companies must address barriers like high costs, staff resistance and regulatory challenges to achieve seamless integration.

From Student to Change-Maker

For Barot, this research was personal: “I decided to write my thesis on this topic to make a slight impact in improving this area. By combining examples and expert insights, I hoped to highlight how AI can transform warehouse management and inventory systems.”

Barot’s journey from student to Wittenborg’s Admissions Administrator has given him a unique perspective. “My time at Wittenborg in the admissions team has shown me the importance of operational efficiency, even in education. It’s something I aim to continue focusing on in my career, whether in inventory, data management or administrative roles.”

Advice for Future Researchers

Barot also shared valuable advice for students starting their own research projects. He emphasised the importance of starting early and selecting a focused, relevant topic. Engaging with existing research is key to strengthening your understanding, while ensuring that your research question remains manageable is crucial for staying on track. Barot also stressed the need to consult with your supervisor regularly for feedback, stay systematic in collecting and analysing data and ensure your findings are clearly presented.  

WUP 10/02/2024 
by Erene Roux 
©WUAS Press