How ITC Uses AI to Boost Supply Chain Efficiency and Demand Forecasting
ITC Ltd is transforming its product development and supply chain processes by integrating artificial intelligence and digital tools. Over the past six years, the company has built a digital foundation that enables faster innovation, better insight into consumer trends, and more effective management of multiple retail channels.
AI-Driven Consumer Trend Analysis
Starting with its Sixth Sense Centre, ITC monitors social media conversations to uncover emerging consumer preferences. This approach allows the company to pinpoint shifts such as the rising popularity of millet consumption. AI tools then suggest product ideas by analyzing trending ingredients and recipes, helping product teams develop relevant offerings quickly.
Digitally Integrated Supply Chain
ITC has developed a fully integrated digital supply chain that adapts to the distinct needs of various retail formats—general trade, modern trade, e-commerce, and quick commerce. Each channel demands different inventory strategies and delivery speeds, so ITC uses demand-sensing tools to optimize stock levels and responsiveness.
For example, quick commerce requires maintaining higher inventory buffers due to unpredictable consumer behavior and the short shelf life of food products. To support rapid product development, ITC also runs pilot plants that enable fast prototyping and testing, contributing to the launch of over 100 new products annually.
Personalized Marketing with AI
On the marketing side, ITC is shifting toward in-house content creation and digital-first strategies. AI engines dynamically generate personalized ads targeted to specific consumer groups. These systems continually test different ad versions, serving alternatives until they identify the most effective messaging.
The company emphasizes balancing its approach across retail channels—from traditional kiranas to online marketplaces and modern trade—to reduce channel conflicts and tailor service for each format.
Industry Perspective on Quick Commerce
While quick commerce is growing rapidly by shortening the time between consumer desire and purchase, questions remain about its long-term sustainability. According to industry leaders, this segment currently relies heavily on investor subsidies and free services for consumers. The challenge will be maintaining demand if these services start charging fees.
Key Takeaways for Product Developers
- Leveraging AI to analyze consumer conversations helps identify meaningful trends and product opportunities early.
- Integrating digital tools across supply chains can improve inventory accuracy and delivery speed, especially when managing diverse retail channels.
- Rapid prototyping supported by pilot plants accelerates product testing and iteration, enabling frequent new product launches.
- AI-driven personalized marketing enhances customer engagement by continuously optimizing ad content for different consumer segments.
- Understanding the nuances of emerging retail formats like quick commerce is crucial for developing adaptable product and supply strategies.
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