Situation
In the world of perishable goods, the risk of stockouts poses challenges for both customers and CPG brands/retailers. From a customer perspective, encountering stockouts of essential items can be frustrating and disruptive to their shopping experience. Fresh produce, dairy products, and other perishables are vital for meal planning, and when these items are unavailable, it can lead to inconvenience and the need to visit multiple stores.
On the other hand, CPG brands and retailers strive to optimize stocking levels to eliminate the risk of wastage or running out of stock. They understand the importance of meeting customer demand while minimizing financial losses and environmental impact. Predictive insights become crucial in this process, allowing them to optimize stocking, anticipate demand by store/region, and consider seasonality variations.
Solution
The AO platform, along with Easy Answers and an AI application, provides a powerful solution for perishable goods supply chain management. By harnessing inputs from IoT cameras, historical order data, consumption rates, and seasonality variations, our solution empowers CPG brands and retailers with predictive insights and actionable recommendations. It assesses the risk score for potential stockout events by products, enabling preventive measures. Using advanced machine learning models, it predicts demand at various store/regional/geographic levels, optimizing stocking and inventory management. The platform performs what-if analyses, considering seasonality, weather disruptions, and transportation bottlenecks. Easy Answers allows staff to interact easily with the AI application, gaining intuitive access to valuable insights for proactive decision-making.
Outcomes
Our solution transforms the supply chain by enhancing forecasting accuracy, minimizing stockout risks, and optimizing the overall efficiency of perishable goods management. With the integration of the AO platform and Easy Answers, retailers experience a profound impact on their supply chain operations. Leveraging the power of AI technology, the platform equips procurement teams and store managers with actionable insights and detailed reports, enabling them to make optimal ordering decisions. By effortlessly interacting with the AI application in plain English, they can proactively plan and effectively manage their supply chain. The outcomes include enhanced inventory management, mitigated stockouts, minimized wastage, elevated customer satisfaction, and amplified overall efficiency and profitability. The AO platform’s advanced capabilities empower retailers to stay ahead of market demands, streamline operations, and drive sustainable growth.
