Grocery replenishment driven by 'gut feel' - Logistics Manager

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Almost half of UK grocery retail directors say replenishment is still driven by gut feel, according to research by Blue Yonder, which supplies predictive applications of retail. It said that interviews with 750 grocery managers and directors in the USA, UK, Germany and France, showed that despite a rise in accurate machine learning algorithms for automated replenishment and demand planning, 46 per cent of surveyed directors in the UK say replenishment is still an entirely manual process. Some 85 per cent of respondents identified automation as a key tool for making the fast decisions needed to meet customer demand. The research also identified that 31 per cent of directors in the UK feel there are now too many decisions to be made manually, with the same number stating that gut feel is slowing them down. The research also found that 62 per cent of UK directors say they have invested in replenishment optimisation in the last two years; 31 per cent say they will be investing further in replenishment optimisation in the next two years.