Implementation of the system of analytics and prevention of lost sales GoodsForecast.OSA in the Perekrestok chain of stores
- Customer
- X5 Group
- Project manager on the customer side
-
- IT Provider
- GoodsForecast
- Year of project completion
- 2022
- Project timeline
- August, 2021 - October, 2022
- Project scope
- 5500 workstations
- Goals
-
-
Improve the current system for monitoring the availability of goods on the shelf
-
Increase the level of availability of goods for buyers
-
Increase turnover
-
Optimize staff work
-
The uniqueness of the project
This is a truly Big Data project, in which data combines all three features - volume, variety, velocity.
An assessment of the direct commercial effect of implementation was carried out and confirmed. To achieve statistical significance, the design of the pilot was developed by a specialized division of X5.
- Used software
- GFC OSA, company software, integration with MPM
- Difficulty of implementation
-
-
Integration of large data arrays (checks) during the day in a mode close to online.
-
Balancing the complexity of calculations and their speed: on the one hand, there should not be a large lag between the sales anomaly and the employee's reaction, on the other hand, the signals should be as accurate as possible.
-
Maximization of the commercial effect in the conditions of limited resources of retail personnel.
-
- Project Description
-
At the first stage, the specialists set up data integration processes, including sales and balances on an hourly basis. Further, on the basis of the collected and labeled data, accessibility assessment models were built, the signal algorithm for alerting stores and ranking the issued signals was improved in order to maximize potential additional revenue. This system was integrated with the Perekrestok microservice, which provides signal exchange and feedback with retail outlets.
To evaluate the economic effect of the system, a specialized division of X5 Group Ad Hoc developed a design for A / B testing lasting 2 months.
A pilot group was formed, consisting of 132 stores with a wide geography. A control group was selected for the selected outlets to evaluate the results. The target metric of the experiment was the positive dynamics of the retail turnover of stores. X5 Group experts calculated that for statistical significance it should be at least 0.8%.
Within two months, the model generated up to two hundred signals in each store 3 times a day. Based on such signals, store employees received tasks on mobile devices to check the shelves for the presence of goods, the presence and correctness of the price tag, and the loss of consumer properties. If an employee identified a problem, it was corrected and confirmed using a mobile device that the issue was resolved.
According to the test results, according to the X5 Group Ad Hoc assessment, the model showed a statistically significant result. The point estimate of the RTO increase was 1.4%, and the upper limit of the confidence interval was 2.4%. In addition, a specialized division of X5 Group concluded that with a full-scale deployment, the same results of growth in turnover will be achieved, provided that the quality of processing incoming signals by store employees is maintained. Since October 1, 2022, the signal generation module has been launched throughout the Perekrestok supermarket chain, and the project has already received its development. At the moment, the X5 Group and GoodsForecast team are working on signal-based demand recovery with subsequent backward integration in order to increase the accuracy of the forecast in the Perekryostok network's auto-order system.
- Project geography
- Russia
On November 30, the professional IT community GlobalCIO hosted a large-scaled international conference "Global CIO Insights: Digital Transformation with AI". During the event, leading experts shared their practical experience in launching projects utilizing artificial intelligence (AI) and highlighted approaches that helped elevate their companies to new heights.
Voting for projects participating in the "Project of the Year" contest is open. The voting began on December 1st and will continue until January 15th inclusive. The winners will be announced on February 7th, 2024.
According to the statistics agency, the number of telecommunication and IT companies has increased 1.8 times in the last five years. At the beginning of 2023, there are more than 12 thousand ICT companies operating in the country. More than 100 thousand people are employed in the industry. At the end of 2022, the volume of ICT services grew by 125.5% and amounted to 22.9 trillion soums, of which 4.2 trillion soums were programming services provided by Uzbek companies and specialists. The total revenue of Uzbekistan's IT sector for the first quarter of 2023 reached 2.38 trillion soums - almost four times more than in the same period of 2022. Exports of digital services increased to $57.2 million. According to IT Park, net income amounted to more than 90% of revenue or 2.158 trillion soums.
According to the statistics agency, the number of telecommunication and IT companies has increased 1.8 times in the last five years. At the beginning of 2023, there are more than 12 thousand ICT companies operating in the country. More than 100 thousand people are employed in the industry. At the end of 2022, the volume of ICT services grew by 125.5% and amounted to 22.9 trillion soums, of which 4.2 trillion soums were programming services provided by Uzbek companies and specialists. The total revenue of Uzbekistan's IT sector for the first quarter of 2023 reached 2.38 trillion soums - almost four times more than in the same period of 2022. Exports of digital services increased to $57.2 million. According to IT Park, net income amounted to more than 90% of revenue or 2.158 trillion soums.
The IT strategy of a large number of companies includes the automation (digitization) of not only accounting processes but also production and logistics processes.