Beauty retail chain Douglas is further expanding its digitalisation strategy. The company claims to be the first retailer to manage its entire supply chain using artificial intelligence (AI). Digitalisation therefore covers purchasing for all products from all suppliers. This is intended to improve the available stock of goods in online shops and branches while reducing inventory by up to 20 per cent.

The Programme Is Constantly Learning

Douglas also seeks to use AI to increase the effectiveness of marketing campaigns and optimise the placement of individual products in its shops. Staff allocation for logistics sites and retail outlets is also to be handled using AI, the company adds.

The retailer uses software from Relex Solutions to control the AI. Their machine-learning algorithms are designed to make the programme's predictive abilities more accurate over time, according to Douglas. The system already takes into account data types including daily weather forecasts for each individual branch location. The beauty platform hopes to make the entire supply chain, with a total assortment of around 100,000 products, more efficient and agile.

Retail Industry Reinvents Itself

True to its motto "Digital First", Douglas is now integrating its online shops, marketplaces and more than 2,000 outlets into a digitally networked, data-based beauty platform. "Our goal is to use digital solutions to make all processes in the company even more customer-focused", says CEO Tina Müller. "The team at Douglas recognises the role that smart technology will play in transforming retail," adds Dr Mikko Kärkkäinen, CEO of Relex Solutions.

Source, photo: Douglas