How Retailers Can Use Technology To Cut Costs (Not Corners)

Forbes - Mar 28th, 2025
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Retailers are increasingly turning to technology to navigate tight margins and maintain a high-quality customer experience. Key strategies include AI-driven inventory management, automation in logistics and checkout, and AI-first product discovery, which help streamline operations and reduce overhead. By consolidating shipping, optimizing pricing strategies, and leveraging virtual store assistants, retailers can achieve significant savings and operational efficiency. Technology, such as machine learning and AI, is playing a crucial role in enabling retailers to adapt quickly to market changes while maintaining customer satisfaction.

The implications of this technological shift are profound, as it allows retailers to focus more on strategic initiatives rather than manual processes. This not only enhances operational efficiency but also boosts sales through personalized customer experiences and dynamic pricing models. The use of robotics, IoT, and AI in various aspects of retail operations—from warehouse management to customer interactions—signals a significant transformation in the industry. As retailers adopt these technologies, they can expect improved margins, better customer loyalty, and a more agile response to market demands, positioning themselves competitively in a rapidly evolving landscape.

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RATING

6.4
Moderately Fair
Read with skepticism

The article provides a clear and timely exploration of how technology can reduce costs and improve efficiency in the retail sector. It effectively communicates its main ideas and offers practical insights for industry professionals. However, its reliance on a single group of experts and lack of diverse perspectives slightly diminish its balance and source quality. The article could benefit from more detailed evidence and exploration of potential drawbacks to enhance its accuracy and engagement potential. Despite these limitations, it remains a valuable resource for those interested in the intersection of technology and retail.

RATING DETAILS

7
Accuracy

The article presents a range of claims about the use of technology in retail, many of which are grounded in widely accepted applications of AI, robotics, and IoT in the industry. For example, the piece discusses AI-driven inventory management, which is a well-documented practice in retail for optimizing stock levels and demand forecasting. However, some claims, such as the assertion that consolidating packages by zip code can reduce shipping costs by up to 50%, lack specific data or case studies to substantiate them. This affects the overall precision of the article.

Another area needing verification is the potential cost savings from virtual store assistants and AI-first product discovery. While these technologies are indeed used to enhance customer experience and reduce operational burdens, the article does not provide concrete evidence or examples to support the specific financial benefits claimed. The lack of source support for these figures means that while the claims are plausible, they require further evidence to be fully verified.

Overall, the article is truthful in its portrayal of technological trends in retail, but it falls short in providing precise data and comprehensive source support for some of its more specific claims. This slightly diminishes its accuracy score.

6
Balance

The article predominantly focuses on the benefits of technology in reducing costs and improving efficiency in the retail sector. It highlights various technological strategies, such as AI, robotics, and cloud-based systems, without delving into potential downsides or challenges associated with implementing these technologies.

There is a noticeable lack of perspective from retail professionals who may have experienced challenges or failures with these technologies. Including such viewpoints would have provided a more balanced view of the topic. Furthermore, the article could have explored potential negative impacts, such as job displacement due to automation or the initial investment costs for small retailers.

Overall, while the article provides a comprehensive overview of technological solutions, it lacks balance by not addressing potential drawbacks or offering alternative viewpoints, which slightly skews its perspective.

8
Clarity

The article is generally well-structured and uses clear, accessible language to convey its points. It effectively breaks down complex technological concepts into understandable sections, making it easy for readers to follow the discussion on how technology can reduce costs in retail.

Each technological solution is presented with a brief explanation of its benefits, which helps maintain a logical flow throughout the article. However, the article could benefit from a more detailed exploration of each point to provide readers with a deeper understanding of the technologies discussed.

Overall, the article's clarity is strong, with a neutral tone and logical organization that supports reader comprehension. It successfully communicates its main ideas without overwhelming the audience with technical jargon.

5
Source quality

The article relies heavily on insights from members of the Forbes Technology Council, an invitation-only community of technology executives. While these individuals are likely knowledgeable, the article does not provide any external sources or data to corroborate their claims, which affects the overall credibility and reliability of the information presented.

The lack of diverse sources or independent studies to back up the claims made by the council members means that the article is somewhat limited in its source variety. This reliance on a single group of experts can introduce potential bias, as the perspectives shared may reflect the interests or experiences of a specific subset of the technology industry.

To enhance source quality, the article could have included data from independent market research firms or academic studies, which would provide a more robust foundation for its claims.

6
Transparency

The article does not clearly disclose the methodology behind the claims made, such as how the estimated cost savings figures were derived. Additionally, it does not mention any potential conflicts of interest that the contributors might have, given their positions within the technology industry.

While the article is transparent in attributing quotes and insights to specific members of the Forbes Technology Council, it does not provide information on how these individuals were selected or whether their companies have a vested interest in promoting certain technologies. This lack of transparency about potential biases or influences could impact the reader's trust in the information presented.

Overall, the article could improve its transparency by providing more context about the contributors and clearly explaining the basis for the claims made, particularly those involving specific numerical estimates.

Sources

  1. https://www.manifest.ly/blog/streamlining-inventory-management-how-ai-tools-are-transforming-retail/
  2. https://www.invensis.net/blog/impact-of-ai-on-inventory-management
  3. https://pavion.com/resource/how-ai-is-transforming-inventory-management-in-retail-operations/
  4. https://katanamrp.com/blog/ai-for-inventory-management/
  5. https://www.ibm.com/think/topics/ai-inventory-management