Albertsons AI-enables distribution center forecasts
Albertsons Companies Inc. is using artificial intelligence to assist distribution center buyers in placing store orders.
The grocery conglomerate is the first retailer to test and implement a new fresh-specific AI solution for distribution center buyers called Afresh DC Forecasts. The module automatically compiles the data buyers use to forecast upcoming orders from the stores they serve.
Albertsons is rolling out DC Forecasts across produce, meat, seafood, deli and food service for 17 distribution centers. Leveraging the solution, buyers can consider a range of fresh demand drivers like promotions, store displays, seasonal trends, and holidays in creating daily forecasts for each item they manage.
Buyers can review forecasts in a cloud-based web app alongside context like promotions and store displays, and Albertsons can directly integrate the forecast data into existing business systems.
"We are excited to continue our partnership with Afresh to further improve planning in our essential fresh departments," said Amanda Martinez, general VP of national replenishment and planning at Albertsons. "Following several months of testing, this new DC solution has already increased visibility and accuracy for daily forecasts across our fresh products."
According to the retailer, this enhancement has led to improved inventory conditions across its stores in banners including Safeway, Albertsons, Jewel-Osco, Shaw's, Vons and ACME. In 2023, Afresh expanded its services beyond produce to include other fresh departments at Albertsons Cos. stores such as meat, seafood, deli and prepared foods.
[Editor’s Note: Albertsons is in the midst of legal wranglings regarding a proposed $25 billion merger with fellow grocery giant The Kroger Co. Kroger recently filed a motion for a preliminary injunction against a Federal Trade Commission (FTC) challenge to the merger proposal.]
"With our new DC Forecasts, we're streamlining fresh insights across the supply chain," said Matt Schwartz, CEO of Afresh. "In developing this, we worked directly with our partners at Albertsons Cos. to develop a centralized data feed that meets pressing needs at the DC: saving buyers time while increasing service levels to stores."
Albertsons builds on Afresh implementation
In January 2023, Albertsons completed the rollout of artificial intelligence (AI)-enabled technology from Afresh Technologies to reduce waste and offer the freshest products possible in the produce department, delivering fresher produce with higher in-stock rates while also reducing food waste.
The grocer then rolled out the Afresh platform to manage its meat and seafood categories more than 2,200 stores across all its banners. Utilizing the solution, Albertsons’ meat and seafood departments intend to keep coolers and freezers light while boosting in-stock rates with AI-powered recommendations for high-value, hyper-perishable items like fresh poultry and prefilled order quantities for slower-moving, prepackaged items such as bacon.
[Read more: Albertsons ensures product freshness with AI]
As of June 15, 2024, Boise-based Albertsons Companies operated 2,269 retail food and drug stores with 1,725 pharmacies, 403 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities across 34 states and the District of Columbia under more than 20 banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci's Food Lovers Market.
