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How AI Transformed Store Replenishment at Morrisons

“The system is capital light, utilizing cloud technology and store specific historic sales data to forecast stock requirements. It is reducing costs and stock levels, while also saving time for colleagues, and providing a better offer for customers.”

David Potts,
CEO, Morrisons

Replenishment Optimization

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The Challenge

One of the biggest customer satisfaction barriers that Morrisons identified was product availability. The supermarket chain had relied on traditional systems to replenish its stores – mostly through manual orders made by in-store teams. This proved time consuming, created inconsistencies between stores, and was not always accurate. To improve availability, Morrisons needed a solution that could solve its two biggest challenges: understocking and overstocking.

The Solution

To achieve this, Morrisons invested in Blue Yonder’s Replenishment Optimization solution, which uses AI to improve demand planning and reinvigorate replenishment based on customer behaviour in every store. Focusing initially on Ambient, Frozen and Long-Life, then Fresh, it increased profitability by reducing missed sales and eliminating waste.

The Results
  • Up to 30% shelf gap reduction
  • 2-3 days‘ reduction in stockholding in-store whilst improving availability at the shelf edge
  • Achieved sales growth 
  • Waste and markdown levels maintained or improved
  • Single touch replenishment 
  • Increased employee productivity
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Replenishment Optimization

Reduce out-of-stock rates by up to 80% without increasing waste or inventory

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  • 10x

    increased product availability

  • 80%

    out-of-stock rate reductions

  • 50x

    fewer manual interventions

Businesses Using Replenishment Optimization

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Kaiser’s Tengelmann Automates Replenishment

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OTTO Uses Replenishment Optimization to Impress Its Customers and Increase Profits

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Successful Demand Forecasting at dm

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Natsu Optimizes Its Sales Planning and Reduces Leftover Stock by 20%

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