Unlocking Distribution Efficiency: How AI Can Optimize Assortments and Reduce Supply Chain Complexity
Use Cases

Unlocking Distribution Efficiency: How AI Can Optimize Assortments and Reduce Supply Chain Complexity

April 24, 2023 | By HIVERY

In the ever-evolving world of retail, supply chain efficiency is vital for maintaining competitiveness. As businesses seek ways to streamline their distribution processes, AI models like HIVERY Curate are emerging as powerful tools that can help optimize assortments and reduce complexity in the supply chain.

Challenges in the Supply Chain

Regional Distribution Centers (DCs) often struggle with managing case picks and balancing the distribution of top-selling items with slower-moving ones. Traditionally, businesses have aimed to maximize distribution without considering the store threshold requirement or the complexity it adds to the supply chain. This approach may lead to inefficiencies and increased costs.

Leveraging AI to Optimize Distribution

HIVERY Curate, an AI model designed for assortment optimization, can help businesses quantify the impact of reducing or removing products that cause distribution complexities. By adjusting the availability of specific items in the model, businesses can simulate various scenarios and assess the impact on the overall category or portfolio.

The Benefits of AI-Driven Distribution Optimization

  1. Improved efficiency: By identifying and eliminating items that add complexity to the supply chain, businesses can achieve greater efficiency in their distribution processes, ultimately saving labor costs and resources.
  2. Data-driven decision-making: HIVERY Curate allows businesses to analyze the impact of their decisions based on real data, ensuring that they can make well-informed choices and focus on high-priority items.
  3. Volume-based threshold identification: Instead of relying on store count as a proxy for setting distribution thresholds, businesses can use AI to identify the optimal volume threshold for individual items, resulting in more accurate and efficient distribution planning.

What it all means?

AI-driven models like HIVERY Curate allow businesses to optimize their assortments and reduce supply chain complexities. By leveraging the power of AI, retailers can make data-driven decisions, increase efficiency, and better manage their distribution processes. As the retail landscape continues to evolve, embracing AI technology can help businesses stay ahead of the competition and unlock the full potential of their supply chain operations.

Connect with our team of experts and explore the benefits of using HIVERY Curate as your reliable co-pilot. Run different supply chain scenarios and see the impact. By leveraging store-specific data, you reduce supply chain complexities with better assortment plans that cater to local shoppers' preferences and DC constraints while streamlining store operations.

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