Primark creates AI digital twins in supply chain management overhaul

Primark has unveiled a new supply chain partnership intended to strengthen its testing of operational and capital changes before implementation.

The Irish multinational retailer has partnered with supply chain network design platform Kallikor to create digital twins of its distribution centres, allowing teams to test alternative operating configurations prior to making real-world changes.

Primark said that this will allow it to identify more efficient approaches while protecting customer service and avoiding downstream cost or operational impacts for stores.

The platform builds operational flow models from Primark’s data, which it said means that the simulation reflects how systems actually perform across a range of scenarios. The technology also offers AI-enabled scenario exploration, which will allow Primark to run multiple potential operating futures side-by-side and assess their trade-offs against one another.

The partnership will give Primark a shared, system-wide evidence base that it said will support confident cross-functional alignment around significant strategic choices.

There is also room for the partnership to expand in future, the companies said. The modelling environment is designed to be reused as new questions arise, allowing teams to test automation pathways, capital investments, network design changes and future growth scenarios within the same system.

Adam Hoccom, director of supply chain at Primark, said: that as the firm continues to grow across markets, Primark needs to ensure its supply chain is designed to support this growth by making sure distribution centres operate efficiently while remaining aligned to store needs.

“Working with Kallikor allows us to test and compare different operating configurations – from layout and flow changes within sites to broader network considerations – before we commit capital spend,” he added.

“This gives us greater confidence in the choices we make and how they will perform in practice, strengthening our ability to innovate and make well-informed decisions as we evolve our network.”

Primark is currently undergoing major changes as it prepares to separate from its parent company Associated British Foods. In July, the chain cut prices by up to 29 per cent across hundreds of its best-selling ranges, and in September it announced plans to offer home delivery in Great Britain for the first time in its nearly 60-year lifespan.



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