Levi’s optimizes e-commerce fulfillment with AI
Levi Strauss & Co. is developing a proprietary artificial intelligence (AI) engine to help process online orders more efficiently.
The leading denim brand is launching an internally developed, patent-pending platform called the Business Optimization Of Shipping and Transport engine, or BOOST. The BOOST platform is capable of streamlining e-commerce fulfillment via functions such as locating and making available a specific product which may be out of stock at distribution centers in a nearby store.
In addition to opening up more inventory to consumers, BOOST is designed to employ AI capabilities to improve operational efficiency, such as by eliminating split shipments. BOOST is designed to automatically consider all elements of the online fulfillment process, from shipping to packing to labor, to optimize decision-making.
By Black Friday 2022, Levi’s expects it will be processing 100% of eligible U.S. orders with BOOST, and the company is currently applying the technology to about 40% of eligible U.S. orders. Levi’s is also scaling BOOST across its businesses in Europe.
Levi’s pursues digital transformation
The rollout of BOOST is the latest step in a broader effort by Levi’s to digitally enhance enterprise operations. In May 2022, the company began piloting two new digital shopping features in select countries, “See It In My Size” and “What’s My Size?”
The new See It In My Sizefeature is designed to provide more inclusive representation in how products are displayed online. As customers look at a specific product on the Levi’s desktop site, they will see a “See It In My Size” button. Once clicked, consumers can select their size, and an image of the garment will appear, but on a digital avatar of a person more similar to their size, height, body shape and/or skin tone, giving the consumer a more accurate preview of the item.
What’s My Size? is a new sizing tool recommendation algorithm. As consumers browse Levi’s products online, they will see the What’s My Size button. When clicked, the tool asks customers to add their height, weight, and gender.
From there, the algorithm will recommend the best size to select. After a consumer does this once, the recommendation will follow the shopper throughout their shopping journey and suggest the best size for each product being viewed.
Levi’s has also been making efforts to increase the omnichannel connectivity of its stores since the early days of the COVID-19 pandemic. In June 2020, Levi’s partnered with Linc Global to integrate the Google Business Messages solution into its cross-channel chat experiences. Google Business Messages is a mobile conversational channel that combines app- and call-based entry points on Google Maps, Search, and brand websites.
And in January 2022, Levi’s launched a custom-built app called Retail Insights, designed to provide stores, districts, countries, and clusters with real-time access to intelligent data via mobile device, in North America.
“What BOOST is optimized to do is fulfill ecommerce orders more effectively,” said Louis DiCesari, global head of data, analytics, and AI, Levi Strauss & Co. “When somebody goes online to make a purchase, we have distribution centers where we keep inventory specifically for those orders. One of the things we can do with BOOST is broaden that search for available product to include stores and allow the engine to choose the best fulfillment option for both the consumer and our bottom line.”