ITC Leverages AI for Supply Chain Efficiency, Demand Forecasting

Kolkata, May 3 (PTI) ITC Ltd on Saturday said it is leveraging artificial intelligence and a robust digital backbone to accelerate product innovation, respond to emerging consumer trends and efficiently serve diverse retail channels.

The Kolkata-headquartered company's digital transformation journey began around six years ago, he said.

"We started with the Sixth Sense Centre to monitor social media conversations, identify consumer trends and translate them into actionable insights. Today, we have AI tools that can extract themes such as dietary shifts — like growing millet consumption — and recommend product ideas based on ingredients and recipes people are talking about,” ITC Executive Director Sumant Bhargavan said.

Bhargavan said it has also developed a fully integrated digital supply chain that supports multiple retail formats — general trade, modern trade, e-commerce and quick commerce.

Each channel has unique demands, especially in terms of inventory management and speed of delivery, requiring tailored supply chain models and demand-sensing tools, he said.

The company has built pilot plants for various categories, enabling rapid prototyping and testing of products based on these insights. “That's how we launch over 100 products a year,” Bhargavan noted.

“Quick commerce, for example, demands higher inventory buffers and predictive tools due to erratic consumer behaviour and short shelf life of food products,” he said.

On the marketing front, ITC is increasingly shifting to in-house content creation and digital-first strategies.

“We use AI engines to dynamically generate and serve personalised ads to consumer cohorts. If one version of an ad doesn't get a click, another one is served until we know what works,” Bhargavan said at an MCCI event here.

“Each retail format — from ‘kiranas' to online to modern trade has a role to play. The key is to minimise channel conflict and serve every format appropriately,” the senior company official said.

Meanwhile, Reliance Grocery Retail CEO Damodar Mall said nearly 72-75 per cent of retail is still physical, amid a sharp traction in digital commerce.

He said quick commerce is accelerating consumption by narrowing the gap between desire and purchase, but wondered about its sustainability.

“Quick commerce turns a wish into consumption instantly — it's reshaping habits and boosting consumption. However, the service is subsidised by investor capital.

"Consumers are not paying for the service; they are having a free lunch. The question is, when services must be paid for, how many will continue?” Mall said without elaborating.

He expects the segment to eventually stabilise with only a few dominant players.