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HEMA adds AI demand forecasting tools to fulfilment network

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Dutch retailer HEMA has introduced new machine learning and artificial intelligence tools in its fulfilment network to allow it to better predict demand for products.

The retailer will be able to automatically forecast demand for its products based on a range of over 200 factors, including weather, promotions and day of the week, month or year.

The software from JDA creates a probabilistic demand forecast which can then be fed back into the supply process to allow better purchasing decisions and ensure the right stock is in stores and distribution centres.

HEMA said JDA was selected after evaluating a number of different providers and finding its forecasts were the most accurate.

Carsten Klomp, CIO at HEMA: “We are very driven to grow from a retailer to a global brand. A modern IT landscape will facilitate this growth where agility, cost awareness and time to market are key.

“This will enable us to continue building a much more data-driven business. We see great opportunities in the use of machine learning to improve overall quality and empower our colleagues and stores. Together we will shape HEMA’s digital future as a critical enabler in our journey.”

Jan Daan van Erven Dorens, manager of supply chain development at HEMA, said: “JDA’s vision, solutions and team are a perfect fit for our supply chain transformation journey, as we accelerate our vision to become a global brand.”

Johan Reventberg, president for EMEA at JDA, said: “Retailers are under tremendous pressure to profitably deliver optimal experiences to their customers. This requires data-driven decision-making and the HEMA team understands this.”

Read more: HEMA sales hit by transition to new distribution centre

HEMA builds new distribution centre near Utrecht to support international growth

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