DOST, Packworks partner for AI-powered sari-sari stores

MANILA, Philippines — Sari-sari stores are about to become smarter and more technologically advanced.

The Department of Science and Technology (DOST) funded Packworks, a Filipino startup that offers a business-to-business (B2B) fast-moving consumer goods  marketplace for sari-sari stores, to leverage artificial intelligence (AI) aimed at equipping over 1.3 million sari-sari stores nationwide with data-driven inventory management tools to enhance business growth.

A P3.5-million research funding from the DOST- Philippine Council for Industry, Energy and Emerging Technology Research and Development  Startup Grant Fund (SGF)  Program will support Packworks’ P1.5-million allocation to develop a machine-learning-powered precision marketing model, offering sari-sari stores customized recommendations on sellable items and promotions from Packworks’ FMCG partners.

DOST Secretary Renato   Solidum, Jr. expressed his support for the project, stating: “Our mission at DOST is to build an integrated, inclusive and sustainable startup ecosystem.  We hope to support startups at every stage of development, from formation to validation, until growth.”

The SGF Program aims to support technology-based startups by transforming early-stage technologies into market-ready products. Now in its second cycle, the program continues to foster innovation across various sectors, including sustainable industries, education, creative industries, data-driven technologies, climate change, and productivity enhancement tools. Since July 2022, DOST has supported 123 startups in the country through the SGF program.

Sari-sari stores, despite serving as the primary source of daily essentials for around 94 percent of Filipinos, are often faced with challenges such as inadequate financial management, lack of actionable customer insights and ineffective promotional campaigns. Furthermore, 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.

“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,” said Packworks chief data officer and project lead Andoy Montiel.

Sari-sari stores are part of micro, small, and medium-sized enterprises in the Philippines, which account for an overwhelming 99.5 percent of all business establishments. Of those, around 500,000 are in the wholesale and retail industry.