Top 5 Ways Automation is Transforming Supermarkets
/Today about 60% of U.S. consumers now buy their groceries online. This has led to many innovations in physical stores; developments which can automate processes and give them an advantage over digital stores. Supermarkets, both large and small, are investing in large-scale automation technologies, from automated checkouts to sensor tags. Let’s take a deep dive into the top 5 ways automation is impacting and transforming the way we buy groceries in store!
1. No Check Out Stores
A big game changer in the automation of supermarkets came in 2016, with Amazon Go launching the first “connected supermarket” with no checkouts. Leveraging the power of deep learning, sensor fusion, and computer vision, customers can walk into an Amazon Go outlet and automatically “check out” simply by taking their chosen items from the stores and leaving through the exit. They are then emailed a receipt. The stores are located in Seattle, New York, Chicago, San Francisco and London.
2. AI Driven Demand Forecasting
Through automation, physical supermarkets can now serve as great data sources. The data accrued in store can drive demand forecasting models, which can feed into demand forecasting software and enable supermarkets to ensure that supply is perfectly matching demand for all their food and beverage products. Accurate demand forecasting and demand planning reduces waste, eliminates production bottlenecks and can increase the efficiency of the whole supply chain.
3. Robots Taking on Tasks
As online grocery ordering continues to thrive, many leading supermarkets are investing in robotics technology to ‘pick’ the orders for their customers. Walmart, Kroger and Albertsons are investing millions in versions of this solution. British retailer, The Ocado Group, who are an exclusively online supermarket, have developed the “hive-grid-machine” — an expansive network of bots in a warehouse that process 3.5 million items or around 65,000 orders every week. In order to stay at the forefront of supermarket automation, Ocado recently invested in $262m for Kindred Systems, a San Francisco-based firm that make a robotic sorting system.
4. Automation and Anti-Contamination
The safety of food and beverage products from ‘farm to fork’ remains a priority for all food manufacturers and supermarket chains. Automation means reduced human interaction with products. With fewer humans handling produce, food protocols are safer and more secure, and less food is contaminated. This reality, coupled with the power of food traceability software, means produce can be tracked ‘farm to table’ — from raw materials to finished goods.
5. Augmented Reality Shopping (AR)
The augmented shopping experience is another important innovation. The technology works by superimposing digital data and images on to the physical world. So shoppers can use their smart phones as they move around the supermarket. Shoppers can even interact with an automated chatbot assistant who can guide them on their shop, helping them plan meals and make the best purchasing choices. According to a Markets and Markets report, “Augmented Reality in Retail Market is expected to grow from USD 1,155.8 million in 2018 to USD 7,951.2 million by 2023, at a CAGR of 47.1% between 2018 and 2023.”
If you’re looking to digitize your supply chain, get in touch with the team at Cashmere today!
