Supply Chain News South Africa

Carrefour optimises supply chain using AI

French retail giant Carrefour is using artificial intelligence to optimise its inventory management and reduce waste by integrating software developed by advanced analytics company SAS into its supply chain.
Carrefour optimises supply chain using AI

Drawing on the €2 billion annual investment budget included in the 'Carrefour 2022' transformation plan, mainly for IT and digital technology projects, Carrefour Supply Chain selected Viya, the artificial intelligence (AI) solution developed by SAS.

Following the completion of an 18-month trial, the platform will be used to collect and process data from stores, warehouses and e-commerce websites to better predict demand and refine supplier orders. More intelligent supply chain management will ultimately reduce stock outages and overstocking in stores and warehouses.

AI driving new occupations

This is the first time an AI solution has been integrated into the supply chain for food products – and, shortly, non-food products – in the French retail sector. According to the Carrefour press announcement, the aim of this project is to "create a unique online and physical environment in which recognised and loyal customers are guaranteed the most suitable offer anytime and anywhere".

AI will also enable people in new occupations – such as data scientists for data processing and demand planners for business expertise – to work in parallel on forward=planning tasks. Optimising the work of the supply and planning teams, the SAS platform can process a variety of data from the Carrefour supply chain information system. It will also make teams more agile by allowing them to integrate new working methods and continuously improve their forecasting processes. The open AI solution will also offer Carrefour experts an opportunity to develop their own bespoke algorithms to meet their specific needs.

"The deployment of the SAS platform will help us turn the corner in optimising our supply chain," says Franck Noël-Fontana, forecast director at Carrefour France. “By freeing up time for teams, artificial intelligence will allow them to focus on developing differentiated forecasting strategies and better meeting customer expectations while reducing waste."

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