Hy-Vee has chosen planning software from Relex to automate demand forecasting and replenishment. The US grocery retailer expects this move to improve product availability, particularly for fresh products. Furthermore, the company aims to relieve floor staff and free up time for customer service.
Hy-Vee operates a total of more than 560 stores across nine states in the US Midwest. These include traditional supermarkets, Dollar Fresh discount stores, Fast & Fresh convenience stores as well as Wine and Spirits outlets. The company is majority-owned by its executives, store managers and eligible employees through an equity fund.
Against a backdrop of rising consumer expectations and rapidly changing demand patterns, the company aims to use better tools to ensure that the right products are available to customers at the right time and in the right place. To this end, the company is implementing Relex’ platform across all retail outlets and logistics centres.
Machine learning aims to improve forecasting accuracy
By automating manual processes, Hy-Vee aims to make planning processes more efficient and increase forecast accuracy. The solution takes a holistic approach that accounts for various demand factors to help overcome planning silos.
Deploying machine learning, Relex aims to predict the impact of business decisions, consumer behaviour, seasonal influences and external factors more accurately. Hy-Vee expects this will enable it to respond more quickly to demand changes.
Special focus on fresh products
Relex’ platform automates and optimises replenishment processes across all product categories, including complex areas such as fresh, seasonal or promotional items. It considers relevant influencing factors such as price, promotions, days of the week, potential cannibalisation, public holidays, local events and weather.
Freshness is at the heart of Hy-Vee’s brand promise. This sector is characterised by high volatility and short shelf life. The transition from intuitive, manual decisions to data-driven and AI-supported planning is intended to help reduce markdowns, improve product availability and boost profitability. Consolidating forecasting, replenishment and ordering for fresh produce on a single platform is designed to simplify planning and improve coordination from distribution centres right through to the shelves in stores.
