Launch of "Automatic Ordering Service by AI Demand Prediction

In January 2024, we will begin offering an "automatic ordering service based on AI demand forecasting" (hereinafter referred to as "AI automatic ordering") to improve food waste loss in the retail industry. With "AI Automatic Ordering," we will not only improve the efficiency of retailers' ordering operations, but also contribute to solving social issues such as improving food waste loss.
As an intermediary distributor of cosmetics, daily necessities, and over-the-counter drugs, we aim to "contribute to the realization of affluent and comfortable lifestyles for people" with a view to optimizing and streamlining the entire supply chain. As food waste loss has become an issue in society as a whole, we began our efforts in July 2021 in response to the fact that retailers are also feeling the challenge of improving food waste loss.
Although we are not a company that primarily handles food products, we believe that one of our roles as an intermediary distributor is to solve these social issues and those of our business partners. We also recognize that improving food waste loss is important from the perspective of the SDGs, and we will provide this service.

While AI automated ordering is good at forecasting demand for products that are consumed daily and have relatively stable sales volume fluctuations, it is not good at forecasting demand for products whose sales volume fluctuates easily due to external factors (e.g., changes in consumer preferences). For this reason, we have established a system that can be used flexibly through hybrid operations, utilizing AI automated ordering for categories in which we are good at, and conventional ordering methods for categories in which we are not so good. In addition, even in categories where the AI is not good at, it can be expected to improve ordering accuracy by setting individual conditions (e.g., time of day, customer base, etc.) for itself.
Since March 2022, the service has been tested by some retailers, and has achieved a 10% improvement rate in food waste loss. The service will be fully operational from January 2024, and we will contribute to improving the efficiency of ordering operations and food waste loss by enabling more retailers to use the AI automated ordering system.

Results of this initiative
Food waste improvement rate: 10% improvement
Amount of food waste improvement: Approximately 100,000 yen (per store/year)
*The higher the percentage of food products handled, the greater the improvement effect.

The supply chain to which we belong faces a variety of challenges, including social issues such as reforms in work styles, promotion of white goods distribution, and reduction of CO2 emissions, as well as economic issues such as soaring delivery costs and labor costs triggered by labor shortages. In the future, we will continue to strengthen our unique functions as an intermediary distributor, deepen our partnership and collaboration with retailers, manufacturers, and delivery companies to optimize and streamline the entire supply chain, solve problems and provide value using digital technology, and contribute to the achievement of the SDGs. We will also contribute to the achievement of the SDGs.