Liverpool adopts artificial intelligence for Demand Forecasting and Replenishment of internal supplies with RELEX Solutions

Jan 15, 2024 2 min

Liverpool, a leading Mexican retailer, chooses RELEX to optimize supply chain processes for internal supplies and meet the growing demand from sales channels continuing to deliver a high-quality experience to its customers.  

Liverpool, a leading retailer operating the largest chain of department stores in Mexico, has chosen RELEX Solutions, provider of unified supply chain and retail planning solutions, to enhance their operational processes for replenishing internal supplies. RELEX will serve Liverpool’s distribution center and 125 stores across Mexico, optimizing inventory, increasing availability, and improving working capital and replenishment efficiency. 

Liverpool’s decision to adopt an advanced solution, leveraging artificial intelligence and machine learning, to optimize the demand forecasting and replenishing of operational supplies, such as boxes, bags, and other items, was driven by their commitment to continuously improve their supply chain operations. The surge in sales through their e-commerce channel had highlighted the complexities of the process and the need for more accurate predictive analysis to effectively meet customer needs and maintain excellence in its internal operations. 

Liverpool is an innovative and ever-evolving company that sought to optimize the replenishment of operational supplies across their distribution center and stores. They aimed to implement a method that maximizes resource utilization and minimizes error margins. Given the importance of maintaining stock levels, such as boxes, having optimal inventories is crucial to ensuring their e-commerce service quality. Consequently, this aspect of their supply chain emerged as a strategic priority. 

Liverpool’s choice of RELEX Solutions was driven by several key factors. They were attracted to RELEX for its user-friendly interface, graphical representation of data, transparency, and a track record of success in similar endeavors.  Specifically, the transparency offered by RELEX is significant as it contrasts with the ‘black box AI’ approach, where the decision-making process is not easily understood by users. Instead, the clear and understandable methodologies provided by RELEX ensure that users can follow and trust the AI-driven decisions, enhancing their confidence in the system. These qualities aligned with Liverpool’s commitment to achieving efficient and effective supply chain management. 

To oversee the implementation process, Liverpool will rely on Demandtex, a trusted partner of RELEX Solutions in Latin America. 

“Our collaboration with RELEX Solutions marks a pivotal step in our continued growth and operational excellence,” says Mirella Quintana Campa, Director of Supply Operations for Liverpool. “RELEX is essential in supporting our ongoing expansion efforts and enhancing our overall operations.” 

Carlos Victoria, Senior Vice President for the Americas at RELEX Solutions, underscored the importance of Liverpool’s adoption of an advanced platform, stating, “Liverpool, as one of Mexico’s largest and foremost companies in the department store sector, has made a strategic move by embracing a solution that harnesses AI to decipher intricate demand patterns. This strategic decision positions Liverpool to make well-informed replenishment choices, leading to cost reduction, and optimizing product availability.”