How this supermarket got shelve gaps down 30% with AI
Posted: 4 April 2017 | By Darcie Thompson-Fields
British supermarket Morrisons is using AI to improve product availability and get shelve gaps down 30%.
Machine learning and AI applications for retail provider, Blue Yonder has partnered with Morrisons to optimise the process of replenishment across all of its 491 stores.
Using its ‘Replenishment Optimisation’ technology the supermarket was able to use external data such as weather forecasts and public holidays to predict stock demand. The system can combine this data with sales data and can predict the level of demand down to the individual product and store location. The artificial intelligence then fully automates ordering per store per product.
The system, which is cloud-based, uses machine learning to learn and develop as it goes.
“Our biggest new initiative has been our new automated ordering system. The system is capital light, utilising cloud technology and store-specific historic sales data to forecast stock requirements.” Said Morrisons CEO, David Potts.
“It is reducing costs and stock levels, while also saving time for colleagues, and providing a better offer for customers.”
The system is now automating over 13 million ordering decisions per day, freeing up employees to focus on customer-facing tasks.