Supermarket giant Morrisons has reported a significant improvement in replenishment capabilities since implementing new artificial intelligence (AI)-based technology.

Using Blue Yonder’s Replenishment Optimization solution, the retailer is able to automatically forecast orders per store and per SKU to meet customer demand, while ‘self-adjusting’ capabilities mean demand can be optimised down to product level – factoring in influences such as store demand patterns, seasonality, weather and promotions.

Through the cloud-based system, Morrisons can also respond quickly to changes in customer demand. The AI technology enables the retailer to make 430 million calculations and 13 million automatic decision every day – at a far greater scale, and more accurately and consistently than the previous system.

Since implementing the new technology, Morrisons says it has improved shelf gaps by up to 30 per cent and has reduced stockholding in-store by two to three days. The retailer will soon be rolling out the solution to all product groups, excluding fashion, with a trial for its Fresh range expected to be completed before Christmas.

David Potts, CEO of Morrisons, said: “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.”

Share Story: