Morrisons improves demand planning with AI solution

Blue Yonder has worked with Morrisons to reduce shelf gaps by 30% via the use of AI technology to analyse vast datasets and automate its replenishment system, ensuring that all its 491 stores were carrying the right level of stock across 130 categories.

The retailer has implemented Blue Yonder’s Replenishment Optimisation solution. “The system is capital light, utilising 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,” says David Potts, CEO at Morrisons.

Morrisons says that it can now make 430 million calculations and 13 million automatic decisions every single day – at far greater scale, and more accurately and consistently than previously. In addition, the granularity of information available is enabling it to enhance the customer experience down to store level; incorporating factors like shelf sizes and consumer buying patterns, rather than taking a ‘clustered’ approach to planning and replenishment.

Morrisons will soon be introducing Replenishment Optimisation across all product groups, except fashion. Next up will be Fresh, following a trial before Christmas. “Results so far have been encouraging. It’s simple to use, saves colleagues time, stock levels are down and availability is improving all the time. It will be introduced across all product groups this year. Great news all round,” says Potts.