AI-assisted inventory management and shelf planning in food retail

In the world of food retail, well thought-out inventory management and shelf planning are of crucial importance. The use of artificial intelligence gives retailers the opportunity to make precise predictions about the purchasing behavior of their customers. Current examples from the retail sector show how companies are implementing this and benefiting from it.

Effective planning of the product range and shelf allocation are essential for food retailers. This has long been true. However, thanks to advanced algorithms, retailers have been able to make increasingly precise predictions about which products will be in demand in the future and where customers expect to find them in the store for a few years now.

One food retailer that has now implemented this in a particularly innovative way is SPAR Austria. The company received the "Future of European Commerce Award" from EuroCommerce for the first time in December 2023. The coveted prize recognizes companies and associations for their transformation projects. SPAR Austria impressed the jury with its visionary approach "Fruit and vegetables 3 days fresher". This involved a comprehensive analysis and optimization of planning, procurement and delivery in the fruit and vegetable sector.

SPAR Austria's aim is to offer consumers fruit and vegetables that are ready to eat at any time. Markus Kaser, SPAR Management Board member, was delighted with the award: "160 experts from the areas of IT, process management, logistics, product range and quality assurance were involved in the SPAR changeover initiative 'Fruit and vegetables 3 days fresher'."

SPAR has introduced targeted measures against food waste, including precise ordering, discounted offers for products close to the sell-by date and donations to social organizations for unsold products. By implementing this project, SPAR Austria was able to reduce food waste to 1 percent. In comparison: in German supermarkets, around 6 percent of perishable foods such as bread are thrown away on average, and around 4.3 percent of fruit and vegetables.

Andreas Kranabitl, Managing Director of SPAR ICS, emphasized: "Driven by AI, the project has revolutionized the planning, procurement and delivery processes. The result is a forecasting accuracy of over 90 percent. All of this means that the exact quantity required is available in the right store at the right time, thereby reducing food waste even further."

Other food retailers have also long been using AI to reduce spoilage costs while improving product availability and thus customer satisfaction. RELEX Solutions is a partner for some big names in the industry. This company specializes in supply chain management, space management and the application of artificial intelligence in these areas.

The use of AI in inventory management and shelf planning enables food retailers to adapt more flexibly to the needs of their customers. Current examples from the food retail sector show that those who use these technologies skillfully not only reap economic success but can also operate more sustainably.