Fresh food technology company Afresh Technologies is making significant strides in the grocery sector with the introduction of its groundbreaking solution, Afresh DC Forecasts. This state-of-the-art, AI-powered forecasting tool is specifically designed for distribution centers (DCs) and is set to transform how grocery chains manage product freshness and inventory accuracy. Albertsons Cos. has become the first retailer to implement this innovative solution across produce, meat, seafood, deli, and foodservice departments at 17 of its distribution facilities.
The DC Forecasts solution tackles a crucial pain point for grocery supply chains: the challenge of accurately predicting demand for fresh products. Historically, distribution center buyers have had to sift through multiple data sources and manually adjust forecasts for hundreds of items daily. This labor-intensive process consumes valuable time and resources, often leading to inefficient inventory management. Through automation, Afresh DC Forecasts minimizes these challenges, providing updated, daily forecasts that align closely with actual product demand.
The new technology takes a comprehensive approach to demand forecasting. It considers numerous factors such as store promotions, display setups, seasonal variations, and special events to derive its predictions. This advanced methodology not only streamlines the forecasting process but significantly enhances the accuracy of demand predictions. As a result, grocery buyers are liberated from time-consuming data synthesis and can allocate their efforts to more strategic initiatives, such as long-term inventory planning.
“Our goal with DC Forecasts is to streamline fresh insights across the supply chain,” affirmed Matt Schwartz, CEO of Afresh. The collaborative development of this solution with Albertsons highlights the importance of partnerships in meeting contemporary retail challenges. A centralized data feed was created to ensure that the unique needs of DC buyers are addressed, ultimately saving time and driving increased service levels to the stores they supply.
The repercussions of inaccurate forecasting at the DC level can be vast. Overestimating demand often results in excess supply, leaving stores with perishable items that rapidly lose their freshness. Conversely, underestimating demand can lead to stockouts, causing empty shelves and consequently lost sales opportunities. Utilizing Afresh’s AI-driven forecasts helps mitigate these risks, ensuring that grocery retailers can maintain optimal inventory levels and product quality.
Amanda Martinez, Albertsons’ GVP of national replenishment and planning, reported positive initial results from the DC Forecasts solution. Following extensive testing, the implementation has already enhanced visibility and accuracy in forecasting daily fresh product needs. This improvement is especially critical, considering that Albertsons operates a network of 2,269 retail stores and 1,725 pharmacies under various banners across 34 states.
In addition to Albertsons, Afresh Technologies has forged partnerships with grocers in more than 3,000 stores across 40 states, expanding its influence in the market. Companies like Heinen’s, Bashas’, and Cub continue to benefit from enhanced inventory management through Afresh’s innovative technologies.
Beyond simply facilitating better forecasting, the integration of Afresh’s solutions throughout the supply chain leads to increased efficiency from suppliers to end consumers. The reduction of waste in the supply chain and the assurance of quality, fresh products for customers are paramount to the value proposition of Afresh DC Forecasts.
As grocery retailers face mounting pressures to streamline operations and reduce waste, technological advancements such as Afresh DC Forecasts offer a compelling advantage. The move towards AI-driven solutions is rapidly becoming a necessity for modern retailers seeking to optimize their service levels and improve product freshness.
With the launch of DC Forecasts, Afresh Technologies has not just introduced a tool for enhancing supply chain capabilities; it has also set a new standard for how grocery retailers approach the complexities of fresh food management. The collaboration with Albertsons will likely serve as a foundational example for others in the industry looking to successfully leverage data-driven solutions.
Investing in advanced forecasting technology now is essential for any grocery retailer aiming to stay competitive in an increasingly digital marketplace. In conclusion, as grocery chains pivot toward more innovative and technology-oriented solutions, Afresh’s DC Forecasts will play a vital role in defining the future of food retailing.
