1、Retail Practice The invisible hand: On the path to autonomous planning in food retail Its not news to food retailers: sometimes your stocks are too high, some- times theyre too low. Advanced planning now gives them entirely new options for solving the expensive problemand cuts costs in the process.
2、August 2019 seng chye teo/Getty Images by Nikolaus Fbus, Tim Lange, Markus Leopoldseder, and Karl-Hendrik Magnus Procurement planners in food retail today are not to be envied. They have to please customers who have never made more exacting demands on availability, freshness, and range. And they ign
3、ore such expectations at their peril: the competition is relentless, driving all market participants to seek out improvements incessantly. Those who stick to their legacy processes can only make comparable progress at the cost of mounting stocks, increasing write-offs, and an increasingly complex su
4、pply chain. Internally, planners are often struggling with outdated IT systems that are isolated from each other, unreliable sources of information, and in some cases, largely manual and poorly coordinated processes. Forecasts are commensurately inaccurate and personnel expenses high. Externally, on
5、 the other hand, decision makers are faced with an increasingly unfathomable offering from digital service providers thatalthough they can process huge volumes of data with their solutionscannot give retailers any advantages of relevance as long as they leave their operating models unchanged. The fu
6、ture will likely be very different. A look at online retail already reveals the shape of things to come: leading companies are developing highly integrated planning systems that already use the most advanced analytics and machine-learning solutions available today. These high-tech methods, also refe