Reducing food loss by AI demand forecasting "Automatic ordering service"

In January 2024, we began offering an "automatic ordering service based on AI demand forecasting" to help retailers reduce food waste.
This service helps retailers improve the efficiency of their ordering process, and also contributes to solving social Section issues such as reducing food waste.

Food Waste Loss is a Section of Society

As food waste loss has become an issue for society as a whole, retailers are also feeling the need to improve their own food waste loss, and in July 2021, we began this initiative.
Although PALTAC was not a company that primarily handled food products, we recognize that resolving such ESG issues and those of our business partners is an important role for us as an intermediary distributor.

10% improvement rate of food waste loss

• While AI-based 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 operation, 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.
  Even in categories where the AI is not good at, it is possible to improve ordering accuracy by setting individual conditions (e.g., time of day, customer base, etc.) for the AI itself.
  
  In March 2022, the service was tested by Department retailers and achieved a 10% improvement rate in food waste loss.
  Full-scale operation will begin in January 2024, and we are working to improve the efficiency of ordering operations and food waste loss while having more retailers use the service.

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