STARTUP Packworks said it received P3.5 million in research funding from the Department of Science and Technology (DoST) to develop its artificial intelligence (AI)-powered inventory management tools for sari-sari stores.
In a media release on Thursday, Packworks said the funding from DoST- Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) will support its machine learning-powered marketing model.
The AI-powered capability will be launched as an in-app service on Packworks’ Sari.PH Pro app and is expected to benefit over 270,000 sari-sari stores nationwide.
Its app allows store owners to access pricing tools, inventory management, sales and revenue tracking, and working capital loans.
“Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion,” Packworks Chief Data Officer and project lead Andoy Montiel said.
Packworks said that sari-sari stores often struggle with financial management, a lack of actionable customer insights, and promotional campaigns, despite being the primary source of daily essentials for 94% of Filipinos.
“The current absence of a streamlined approach for receiving high-quality promotions, such as discounts or personalized item packages from FMCG manufacturers, restricts store owners from enticing and retaining customers effectively,” it said.
DOST-PCIEERD Executive Director Dr. Enrico Paringit said the collaboration shows the government’s commitment to fostering technological advancement and economic growth through strategic public-private partnerships, as outlined in the Innovative Startup Act.
The collaboration will run for 18 months and aims to reach more micro-retail stores across the country to boost their digital capabilities, entrepreneurial growth, and success.
In 2022, Sari IQ was a business intelligence tool providing real-time and historical consumer expenditure data to help retailers and brands gain visibility into sari-sari stores and expand their reach to more customers.
The analysis helps stores make data-driven decisions by understanding and predicting consumer demand within their area.
Sari-sari stores are part of micro-, small-, and medium-sized enterprises in the Philippines, accounting for 99.5% of all business establishments, of which 500,000 are in the wholesale and retail industry.
Packworks, launched in 2018, is an app that brings technology-based solutions to sari-sari stores. — Aubrey Rose A. Inosante
