Supermarket Perimeter - May 2024 - 92

Technology: Fresh ordering
Greater accuracy, fresher food
Afresh's recent upgrades to its fresh ordering software include updates to its inventory
estimator and ordering policy functions, said Dain Charette, the company's chief revenue
officer. The upgrades, he said, will mean greater accuracy, fresher food, and higher profits for
Afresh's customers.
" Grocers have heard that AI can transform their businesses, but many struggle to evaluate
different solutions available, especially when many seem to make similar claims, " Charette said.
Afresh's approach to AI is different, he added. The company's fresh ordering and other
services are designed to recognize and adapt to the imprecise nature of data in fresh grocery.
Where other inventory solutions assume data accuracy, Afresh detects potential data error,
considering how factors like spoilage and human error may impact demand forecasts and
inventory numbers. Charette said. Afresh then applies machine learning to run thousands of
simulations, weighing shelf life and display standards to keep shelves full of fresh food while
reducing waste and ultimately generating the profit-maximizing order for each fresh item.
Competitive edge
The demand for fresh ordering services at grocery retail is on the rise
due to competitive pressures, economic challenges, and sustainability
goals, emphasizing the importance of efficient fresh product
management, said Greg Wilson, vice president of field strategy for Relex.
" The competitive nature of the grocery market necessitates
differentiation through the offering of fresh, high-quality products,
which enhances customer satisfaction and loyalty, " Wilson said.
" And there's a significant push towards sustainability and reducing
food waste. "
The complexity of managing perishable goods, coupled with
economic pressures such as fluctuating prices and tight margins,
means retailers must switch to more efficient inventory management to
improve profitability. Relex enhances fresh ordering for grocery stores
with AI-driven machine learning demand forecasts and integrating the
shelf life of products into critical calculations, Wilson said. The Relex
approach includes determining the necessary safety stock, projecting
future spoilage risk, and accurately estimating the inventory position of
challenging items like fruits and vegetables.
" The platform ensures that grocery stores can maintain optimal
inventory levels, minimizing waste while ensuring the freshness and
availability of products, " Wilson said. " These insights and calculations
are vital for optimizing fresh product management and are carried
through the entire supply network, making a substantial contribution to
the efficiency and sustainability of grocery store operations. "
Relex is constantly upgrading its fresh ordering capabilities, said
Alex Jobin, the company's senior solution principal, Forecasting and
Replenishment.
One notable recent update is customer behavior modeling, which
enhances Relex's ability to maintain accurate virtual inventories for
ultra-fresh products.
The company has also recently improved its safety stock
optimization through new methodologies, significantly impacting the
Relex platform's effectiveness.
Another recent introduction, Jobin said, is Relex Mobile Pro, which
streamlines fresh grocery ordering by offering real-time inventory
visibility and automated replenishment recommendations tailored for
fresh products.
" It enables easy adjustments to orders, allowing store staff to respond
swiftly to changes in demand or inventory levels. "
That means less spoilage and waste, contributing to retailers'
sustainability efforts, Jobin said.
And enhanced operational efficiency frees up staff to focus on
customer service and other essential tasks.
Additionally, it supports comprehensive task management for fresh
items, including promotions, markdowns, and inventory counts,
ensuring a well-rounded approach to managing fresh products.
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Relex

https://www.afresh.com/resources/the-future-of-fresh-inventory-how-afreshs-machine-learning-model-is-reimagining-inventory-management https://www.afresh.com/resources/the-future-of-fresh-inventory-how-afreshs-machine-learning-model-is-reimagining-inventory-management https://medium.com/afresh-engineering/shrinkaware-an-improved-grocery-ordering-policy-fa1fcc2e610d http://www.supermarketperimeter.com

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