OSA Hybrid Platform Implementation Project at Dixy Retail Chain Was Recognized as the Best Solution in Retail in 2019
On December 6, OSA Hybrid Platform project with Dixy retail chain received recognition as the “Best solution in retail” at the “Smart City” award ceremony and forum conducted by ComNews. The award was received by Vadim Makarenko, Dixy’s Marketing Director and coordinator of the OSA HP project at Dixy stores. Read more about the award ceremony on ComNews website.
Earlier in 2019, ComNews reported that Dixy Group was starting the implementation of the innovative system which would ensure on-shelf availability across all stores under the Dixy brand. This is a joint project with OSA Hybrid Platform, a big data platform managed by artificial intelligence that is performing in real time. Dixy’s press office says that this is the first full-scale deployment of this technology in Russian grocery retail.
The results of the successful pilot project were presented at the suppliers forum of Dixy Group. The project took 6 months, was conducted in more than 200 Dixy stores in Moscow and included more than 50 product categories. As the result of test deployment, the project showed the potential for sales growth of 4% for the retailer and its suppliers, combined with the simultaneous decrease in phantom stock and financial losses associated with it. At the moment, the two companies are working on streamlining their mutual operational processes in order to scale the project to all 2550 stores across the regions where Dixy is present.
The big data platform that is being integrated, allows the system to collect around 100 different types of data, process it in real time with the help of artificial intelligence, issue actionable tasks to the store staff and control the compliance. The potential inherent in this solution will allow to improve the efficiency of other processes too, such as 4P management (product, price, placement and promo), along with providing additional functionality to the auto-ordering systems, etc. Big data platform has already been successfully integrated with all of Dixy’s internal systems.
It is worth noting, that the OSA HP model creates conditions for cooperation between the retail chain and its suppliers. Now all supply chain participants can receive real time analytics, which means each and every one of them can contribute to better on-shelf availability. This solution improves transparency of the “last mile” for manufacturers and suppliers, and is on par with the best retail practices.
Vadim Makarenko, Director of Strategic Marketing of Dixy, and the coordinator of the project on behalf of the retail chain, says that “For our stores, the key benefit of this service is that it allows us to focus the time and resources on solving the most important issues with on-shelf availability “right now and right there”. The store employee doesn’t have to spend time monitoring a shelf in order to understand which product is not there, or which product is not displayed properly. All he or she has to do is to act on the task or signal issued by the system, while the artificial intelligence controls the compliance with the help of computer vision. In this whole process, the shopper, who can find the product he or she is looking for exactly where it is supposed to be, is the main winner”.
“The high level of competition in this market requires that retailers and suppliers come up with new, non-trivial technologies. Based on Gartner estimates, the global retail market will invest up to 203.6 billion dollars in technology solutions and development, with the amount of investments expected to actively grow in the next two years. We believe that in the next couple of years 85% of all business processes will be managed by artificial intelligence. That is why I am so happy that Dixy Group and large manufacturers are spearheading this technological evolution in the market”, - says Alexander Isaiev, CEO of OSA HP.
“Dixy Group is the first retailer who is going to roll out this platform, who deploys big data and artificial intelligence systems and does so openly and together with its business partners”, adds Maximilan Musselius, Executive Director of ECR Russia. “I would like to also mention the atmosphere of trust and partnership, and the high level of involvement of Dixy’s top management, the manufacturers and the development team of this service in the common goal”.
“This service is useful for us, as a supplier, for the retailer and for the consumers. I am glad that one of the leaders of Russian grocery retail is implementing the newest big data and artificial intelligence technologies. I am especially impressed by three factors: the collaboration inherent in this service, rollout to the entire retail chain and the fact that the service is working in real time. We welcome the open approach that Dixy demonstrates when it comes to collaboration in ensuring on-shelf availability at their stores”, commented Pavel Akimov, Director of Customer Marketing of Efko Group.
The platform’s rollout to the entire Dixy retail chain is expected to be completed by the end of 2019. The company expects to see the sales growth thanks to the improved efficiency of inventory management at its stores and the optimization of supply chain.