Waitrose is extending its collaboration with Blue Yonder with the addition of the supply chain solution provider’s industry-leading forecasting capability.
The new move will mark the first significant introduction of artificial intelligence (AI) into Waitrose’s forecasting – and is designed to improve the already high levels of availability across the retailer’s stores.
Rather than relying on historical sales data and human intuition, the AI forecasting capability – part of Blue Yonder Demand Planning – focuses on customer behaviour and analyses ‘why’ customers bought what they did rather than just ‘what’ they bought.
The capability understands and learns from the trading environment to provide a better forecast based on customer behaviour. For example, it will learn how customers responded to a variety of influences, including weather variations, major sporting and cultural events, and promotions.
The upgrade is part of a significant investment in technology across Waitrose’s supply chain and is designed to improve availability, which already stands at record levels.
It is also expected to:
- Improve customer satisfaction score by increasing on-shelf availability and refocusing store Partners from manual ordering to more strategic customer-oriented tasks.
- Leverage AI capabilities to ingest and analyse massive volumes of data without overwhelming users.
- Assess risks by weighing different forecasting outcomes.
- Determine stock volumes dynamically to minimise waste.
- Respond to demand fluctuations automatically, quickly and accurately.
Alison Maffin, Waitrose Supply Chain Director, said: “Whether we are planning for a major sporting final or the first cold snap of the winter, there can be multiple factors affecting what our customers buy. The Blue Yonder solution will learn from previous experience and help us predict this more accurately so we can be confident we have the stock our customers want. This will allow us to produce a much more accurate forecast for our suppliers and logistics partners, but will also result in less wastage and better availability for our customers.’’
Gael Ramaen, Corporate Vice President, Retail, EMEA, Blue Yonder, said: “A better forecast is crucial for retailers, and we are thrilled and proud to support Waitrose with their goals of enhancing customer experience and meeting sustainability goals. This builds on the already successful deployment of Blue Yonder Fulfilment and Warehouse Management solutions used within their organisation.”
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