Viva Energy Taps Blue Yonder to Transform Convenience Store Shopping
▼ Summary
– OTR Group, Australia’s largest convenience store operator, is digitally transforming its in-store experience by implementing Blue Yonder’s Category Management and demand planning solutions.
– The initiative aims to improve space planning, demand forecasting, and fulfilment by leveraging AI to enable accurate forecasting by SKU, store, and day.
– A key goal is to optimize inventory levels through store segmentation and to automatically align inventory with consumer preferences to enhance the customer experience.
– This transformation will help OTR Group better manage the impact of new items or assortment changes and expand its product range to meet changing consumer expectations.
– The project follows OTR Group’s strategic acquisitions and is intended to standardize processes on a single platform to optimize product availability and become Australia’s leading convenience retailer.
The strategic placement of convenience stores, especially those offering fuel and electric vehicle charging, significantly impacts where consumers decide to stop during their journeys. Success in this competitive sector hinges on a deep understanding of customer preferences, the ability to tailor product assortments to specific locations, and maintaining agile inventory systems for maximum operational efficiency. To achieve these goals, OTR Group, the largest convenience store operator in Australia and a part of the Viva Energy group, has embarked on a major digital transformation initiative. The company is partnering with supply chain leader Blue Yonder to overhaul its in-store experience by implementing advanced category management and demand planning solutions.
Viva Energy plays a vital role in the Australian economy, refining and supplying the energy products that power the nation’s travel. Through its OTR Group division, the company manages a vast network of approximately 1,000 service stations. This portfolio includes well-known brands like Shell Reddy Express, On The Run (OTR), and Store24. The operation extends beyond fuel, encompassing 100 quick-service restaurants, 275 Smokemart and Giftbox outlets, and the manufacturing and supply of Krispy Kreme products in South Australia. This rapid expansion created a pressing need for a sophisticated system to manage product ranges and predict demand accurately across its diverse store network.
To address the complexities of its growing business, OTR Group turned to Blue Yonder for a technology-driven solution. The partnership will leverage artificial intelligence and machine learning to bring a new level of intelligence to store operations. Key benefits expected from this collaboration include achieving more accurate forecasting for individual products at each store location, optimizing inventory levels through advanced store segmentation, and automatically aligning stock with shifting consumer tastes. The system is also designed to smoothly manage the introduction of new items and changes to the product assortment, ensuring a consistently positive customer experience.
Natalie Dalbo, chief customer officer for OTR Group, explained the strategic reasoning behind the move. Following significant acquisitions, the company required a unified platform to standardize range management and demand forecasting processes. She stated that a holistic view of demand will allow the company to optimize its supply chain and service delivery to stores. Replacing outdated legacy systems with Blue Yonder’s integrated solutions was identified as the best path forward to ensure optimal product availability across the entire network.
Antonio Boccalandro, Blue Yonder’s president for the APAC region, expressed enthusiasm for the partnership. He noted that OTR Group is leading a transformative shift in convenience retail with a strong focus on the customer. Blue Yonder’s scalable solutions are engineered to handle high volumes and transform store operations through a composable approach. This includes enhancing critical tasks like inventory management and planogram updates, which are essential for boosting customer satisfaction and store profitability. The collaboration is seen as a key step in accelerating Viva Energy’s broader digital transformation journey.
(Source: ITWire Australia)