Below is reposted from our friends at the Green Seed Group which CatsAi were kindly asked provide an Expert View on Ai and where there are gaps in the retailer to supplier chain.
Retailers and suppliers operate blind between. There is a transactional relationship but an opportunity for so much more is being realised through innovative tech and business thinking.
Artificial Intelligence (AI) creates the data of the future through predictions and supports the decision making process - but this doesn’t have to reside in either the retailer or the supplier. Predictive analytics research by catsAi shows that 78% of losses occur over the next 7 days from events and behaviours that were unforeseen, and which AI can solve. If we can share that knowledge through the supply chain, incredible opportunities for efficiency begin to be revealed.
Take a large UK supermarket with an instore bakery. On average they are disposing of £18.25 of same day baked food per bakery. Scale this up across their chain and this amounts to £3.7m in annual losses simply through not knowing the consumer behaviour on a given day, which is the culmination of millions of influencing factors specific to the location of sale - something their planners - who are overwhelmed with all the data - can’t readily understand! This is where Artificial Intelligence can be applied in a reliable and repeatable way.
From one side you are able to predict consumer demand accurately from a retailer’s perspective, thus helping the food wholesalers and producers to use this new insight to optimise supply, logistics and labour. This partnership contributes positively to the bottom line for both parties - and let’s not also forget the important and obvious environmental benefits.
It is the definition of win-win; but why don’t more companies see the opportunity?
Using AI is considered by many to be the preserve of large tech companies with big tech budgets. This does not need to be the case. Embedding AI into your processes and decision making is actually easier than you would think and you don’t need to be tech savvy either.
As a food retailer you should be looking to apply AI quickly and safely and sharing this with your producers to join up in the decision making process. And producers should be asking for more information from retailers to help improve their relationships to drive efficiencies.
Evidence suggests that using Artificial Intelligence to connect retailer and producer to mutual benefit contributes to a ‘quick win’ on environmental agendas too, particularly evidenced in achieving Scope 3 objectives.
Here at CatsAi, we’re helping suppliers work with retailers to drive greater innovation, efficiency and environmental standards through AI in a quick, simple, and safe way.
Artificial Intelligence is the key that unlocks the next wave of efficiency in our food ecosystem.
Background to CatsAi. CatsAi is a quick to add Artificial Intelligence solution that requires no technology learning, but enables retailers to accurately predict consumer demand, and producers to actually know what the retailers will want. The platform built by Artificial Intelligence experts and applied globally on 70,000 locations, is helping producers and retailers to connect the missing dot in efficiency in an ultra rapid way.
Paul Staples firstname.lastname@example.org