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The Smart Report - Get the latest insights on the global AI in retail research study

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How AI Transformed Store Replenishment at Morrisons

“The system is capital light, utilizing 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.”

David Potts,
CEO, Morrisons

Demand Forecast & Replenishment

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The Challenge

One of the biggest customer satisfaction barriers that Morrisons identified was product availability. 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. To improve availability, Morrisons needed a solution that could solve its two biggest challenges: understocking and overstocking.

  • Imrove availability of assortment
  • Increase profitability by reducing missed sales
  • Streamline complex IT infrastructure and category systems
The Solution

To achieve this, Morrisons invested in Blue Yonder’s Demand Forecast & Replenishment solution, which uses AI to improve demand planning and reinvigorate replenishment based on customer behaviour in every store. Focusing initially on ambient, frozen and long-life, now on short life fresh products, it increased profitability by reducing missed sales and eliminating waste.

The Results
  • Up to 30% shelf gap reduction
  • 2-3 days‘ reduction in stockholding in-store
  • Achieved sales growth 
  • Reduced waste and markdowns
  • Simplified and optimized replenishment
  • Increased employee productivity
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Demand Forecast & Replenishment

Reduce out-of-stock rates by up to 80% without increasing waste or inventory

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  • 10x

    increased product availability

  • 80%

    out-of-stock rate reductions

  • 50x

    fewer manual interventions

Businesses Using Demand Forecast & Replenishment

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OTTO Uses Replenishment Optimization to Impress Its Customers and Increase Profits

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Some book

Successful Demand Forecasting at dm

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Some book

Natsu Optimizes Its Sales Planning and Reduces Leftover Stock by 20%

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