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From Source to Shelf, a Round Up of Retail AI Innovation

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Supply Chain Solution: Demand Forecast & Replenishment

Increase profits and ensure optimal stock availability

  • 10x

    increased availability

  • 80%

    out-of-stock rate reductions

  • 50x

    fewer manual interventions

  • Speed to value: optimization of processes based on data
  • Precision: KPI-driven forecasting and replenishment
  • Automation: reduced cost to serve
  • Demand-driven: customer aligned supply chain
  • Innovation: self-learning supply chain systems

Why Blue Yonder Demand Forecast & Replenishment

Our artificial intelligence solution delivers probabilistic forecasts based on hundreds of different variables including weather, promotions, and holidays. This allows the business strategy to automate millions of daily replenishment decisions across products and stores.

Demand Forecast & Replenishment determines the optimal order quantities for every product and every store, every day without the need of unnecessary manual intervention. These order quantities are based on a weighted optimization of competing goals such as waste and out of stocks. 

Blue Yonder Demand Forecast & Replenishment is highly scalable, delivering order proposals in advance, freeing up resource to deliver your brand promise and meet changing customer expectations.

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Demand Forecasting

What it does

Our forecasting engine provides a robust yet unbiased view of customer demand. It calculates probabilistic forecasts for end-to-end agile business processes with millions of item/stores or channel combinations.

What it delivers
  • Forecasting based on not just the sales data but weather, promotions, holidays
  • Demand predictions for new products based on descriptive master data
  • Probabilistic view instead of “point projections”
What are the benefits
  • Improved forecasting accuracy by machine learning techniques proven in retail
  • Profitable demand planning for profitable and localized customer experience
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Replenishment

What it does

The Blue Yonder solution focuses on KPI performance. The replenishment algorithms are based on weighted optimization of competing goals, without the need to compromise on operational constraints.

What it delivers
  • Recommended order quantities based on optimal trade-off between competing cost factors
  • Constraints-led (e.g. packs, pallets, etc.) final order quantities
  • Simplicity in monitoring performance and exceptional situations
What are the benefits
  • Effortless reduction in inventory according to sales and service level strategies
  • Improved sell-through and inventory turns right down to the item-level
  • Increased operational efficiency in supply chain
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Inventory Optimization

What it does

Our solution enables inventory optimization based on a retailer’s stock management policies. This ensures that the replenishment and stocking decisions based on that optimization also achieve category and financial planning goals, on a daily basis.

What it delivers
  • Consistent and efficient inventory management
  • Reduction of retailer’s cost to serve
  • Supply chain performance monitored at item-level
What are the benefits
  • Consumer demand-driven supply chain
  • Optimization based on economic and supply chain constraints
  • Better customer experience

How Does Demand Forecast & Replenishment Work?

Blue Yonder Replenishment Optimization for Retail

Highlights of Our Solution

  • Scientific optimization based on machine learning instead of a a rule-based system
  • Daily optimized replenishment decisions, essential for the fresh and perishable food category
  • Automated forecasting without daily adjustments of individual parameters or maintenance of static rules

Customers Using Demand Forecast & Replenishment

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Supermarket Kaufland automates its central ordering with Demand Forecast & Replenishment

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Some book

Blue Yonder’s AI technology dramatically improves demand planning at Morrisons

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Some book

Natsu masters its demand planning with Demand Forecast & Replenishment

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Brochures

Supply Chain Solution: Demand Forecast & Replenishment

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Solution Brief

Demand Forecast & Replenishment

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Studies

McKinsey: The Secret to Smarter Fresh Food Replenishment? Machine Learning

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Customer Experience in Grocery Retail: the Fresh Opportunity

A global survey of 4,000 consumers shines light on customer experience in fresh and product availability

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