How machine learning can help bring fresh food to your plate

Machine learning can help retailers address the challenges of offering fresh foods, which account for up to 40% of a grocers' revenue and one-third of the cost of goods sold, according to a report by McKinsey and Company. The increasing demand of these products have led to new offerings, like exotic and hard-to-find items as well as "ultrafresh" items with a shelf life of no more than one or two days. Old processes can make it difficult to order the correct amount of food: order too much, and the food goes to waste; order too little, and you lose sales. Most traditional supply chain planning systems take a fixed, rule-based approach to forecasting and replenishment, but because local demand and conditions vary from day to day, planners have to manually enter different types of data into their replenishment systems. These manual processes are time consuming, error prone and reliant on individual planners' experience and instincts.