What's Happening?
Coles Group is leveraging artificial intelligence to better prepare for viral recipe trends that impact product demand. This initiative follows a recent shortage of cottage cheese, driven by a TikTok recipe trend, which left supermarkets struggling to meet consumer demand. Caroline O’Brien, General Manager of Data and Intelligence at Coles, announced at the SAP NOW AI Tour event in Melbourne that the company plans to prioritize cross-functional AI use cases over the next year. The goal is to enhance demand forecasting and supply chain management by integrating social listening and sensing technologies. Coles aims to improve customer experience by ensuring popular products are available in stores when demand spikes due to social media trends.
Why It's Important?
The integration of AI into Coles' operations is significant as it addresses the challenges posed by rapidly changing consumer demands influenced by social media. By improving demand forecasting and supply chain responsiveness, Coles can maintain customer satisfaction and avoid shortages that negatively impact sales. This strategic use of AI not only provides a competitive advantage but also positions Coles as a forward-thinking retailer in the industry. The move reflects a broader trend of businesses adopting AI to enhance operational efficiency and adapt to market dynamics.
What's Next?
Coles plans to continue expanding its data and intelligence team, focusing on software engineering skills necessary for deploying AI models. The retailer is collaborating with technology vendors like Microsoft, Snowflake, Databricks, Palantir, and SAP to support its AI initiatives. As Coles refines its AI strategies, it may explore additional applications to further optimize its supply chain and customer engagement processes. The success of these efforts could influence other retailers to adopt similar technologies to address viral trends and improve their market positioning.
