Morrisons’ like for-like sales have risen for the last six quarters, it achieved this, claims Blue Yonder, a provider of artificial intelligence for retail supply chain optimisation, by innovating around customer experience. Here is the case study.

According to Blue Yonder: Morrisons focused on six priorities to turnaround its business, including an initiative to serve customers better.

One of the biggest customer satisfaction barriers that Morrisons identified was product availability. Up until that point, 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. After much consideration, it selected the Blue Yonder Replenishment Optimization solution to enhance its demand planning and replenishment capabilities.David Potts, CEO at Morrisons, put it this way: “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.” 12 months later, it was complete.But, Why AI?Morrisons’ improvement in replenishment was down to the use of cutting-edge AI technology, says Blue Yonder.It said: “Not only can AI automatically forecast orders daily per store and per SKU to meet customer demand, its self-adjusting capabilities mean demand can be optimised down to product level – factoring in influences including store demand patterns, seasonality, weather, and promotions.”In this way, AI delivers much more than just transforming daily ordering from a highly resource-intensive task to full automation; the more data processed, the more intelligent it becomes.

Decision making becomes based on being able to model what is going to happen, not just what has happened previously.”And by using a cloud-based solution, it is scalable.”For Morrisons, this means the grocer can respond quickly to changes in customer demand, and in the wider market.

AI technology has also enabled Morrisons to close the execution gap, optimising availability while reducing wastage, enhancing shelf presentation and meeting stockholding targets.”

The ResultsMorrisons 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 Morrisons 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.

“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.”

David Potts CEO, Morrisons

Morrisons’ like for-like sales have risen for the last six quarters, it achieved this, claims Blue Yonder, a provider of artificial intelligence for retail supply chain optimisation, by innovating around customer experience. Here is the case study.