AI-Powered Inventory Optimization: Revolutionizing Stock Management in Manufacturing

In an era where AI is increasingly becoming integral to various industries, Esmmat Corporation (headquartered in Shinagawa, Tokyo, led by Takayuki Shiga and Hidetoshi Hayashi) has taken a significant step forward. On June 19, 2025, the company announced the beta launch of its new feature, the `AI Inventory Optimization Agent`, within its inventory management service, `SmartMat Cloud`. This groundbreaking feature utilizes IoT scale technology to streamline stock management, ultimately addressing the pressing concerns of inventory compression and the risk of shortages.

The Role of AI in Inventory Management

The `AI Inventory Optimization Agent` is designed to learn from the usage trends and time-series patterns of inventory data gathered by IoT scales. By doing so, it can autonomously detect potential risks of stockouts as well as opportunities for inventory reductions. The agent provides timely, proactive suggestions to on-site personnel, thereby facilitating optimal inventory management. With the growing challenges of labor shortages and reliance on individual expertise in the manufacturing sector, this innovation aims to introduce a data-driven approach that transcends traditional, experience-based decision-making.

Survey Insights: AI Underutilized in the Workplace

Despite the increasing integration of AI across various sectors, many businesses still face challenges in effectively employing this technology at the operational level. A survey conducted by Esmmat in June 2025 revealed that over 70% of companies acknowledge the necessity for transformation through AI. However, only about 40% have managed to implement AI effectively. Moreover, discrepancies in the perception of AI utilization challenges exist between management and frontline employees. Workers often express confusion over how to leverage AI for specific tasks and struggle with complex prompt designs, highlighting the barriers to practical usage.

To combat these issues, Esmmat has developed the `AI Inventory Optimization Agent`, aiming to create a solution that is accessible and easily integrated into day-to-day operations.

Addressing Real-World Challenges: Awareness of Stock Issues

Feedback from industry professionals indicates a prevalent desire to optimize inventory, yet many encounter difficulties in translating this aspiration into actionable steps. A key reason identified for this lag is a lack of clarity on how to determine the appropriate stock levels for optimization. Several contributing factors exacerbate this dilemma:

- Analog management practices hinder the collection of essential data regarding stock levels and usage trends.
- Even when data is available, the criteria for determining optimization remain vague.
- There are inherent limitations in identifying problematic stock items through manual oversight, especially when dealing with hundreds to thousands of products.

Many front-line workplaces struggle to recognize changes or issues regarding inventory due to these obstacles. The newly introduced `AI Inventory Optimization Agent` aims to automate the discovery phase by analyzing real-time stock data captured by IoT devices, thereby supporting informed decision-making in the field.

Functionality: AI’s Role in Identifying and Addressing Inventory Changes

The AI agent utilizes weight change data from the `SmartMat` IoT scale to learn usage patterns, rates of reduction, and seasonal variations. Based on this analysis, it monitors a broad range of managed products, assessing daily and weekly changes to prioritize inventory that poses high risks of shortages or surpluses. The agent subsequently delivers notifications and suggestions to on-site teams, facilitating easier inventory management.

Examples of Notifications and Suggestions

The AI agent is engineered for intuitiveness, allowing all team members to engage with it without needing advanced training or technical knowledge. Users can view AI-generated insights and determine their next steps directly on their usual interfaces. By handling sophisticated analyses and problem identification, the AI frees up personnel to focus on critical decision-making and on-site verification, significantly enhancing operational efficiency.

Combining the powerful real-time stock data from SmartMat with the analytical capabilities of AI, Esmmat envisions a future where optimal inventory management can be sustained without solely relying on human intuition or expertise.

Upcoming Events

To showcase the latest AI functionalities, Esmmat will host a live demonstration and utilization seminar on June 25, 2025, from 12:00 to 13:00 (online, free to attend). For more details and registration, visit the SmartMat Event Page.

Learn More About SmartMat Cloud

The SmartMat Cloud offers a seamless automation solution for real-time inventory management through IoT visibility, significantly simplifying stock management and operational improvements. Since its launch in winter 2018, it has been adopted by over 1,200 companies across diverse sectors, including manufacturing and healthcare. To explore further, check the official SmartMat website.

About Esmmat Corporation

Formerly known as Smart Shopping, Esmmat Corporation aims to revolutionize everyday inventory flows using IoT scale-driven automation solutions. Their B2B SaaS product, SmartMat Cloud, is designed for comprehensive inventory management, including stocktaking and ordering automation. Founded in November 2014, the company continues to innovate in inventory optimization. For more information, visit Esmmat Corporation.