Substitutions - How Can Data Science and New Technologies Reduce Surprises and Improve Productivity?
Date and Time:
June 25th - 2pm UK
Location:
Virtual
25 Jun 2:00 PM
Organisers:
Paul Chapman, University of Oxford, Daniel Corsten, IE University, Madrid and Thomas Gruen, University of New Hampshire
Description
When retailers gain visibility to an online order for an item that is / may not be available, there are at least three ways to "save" that sale. First, they can present substitutes at the moment the shopper places an order. Second, they can, just before the picker is presented with the order to pick, direct the picker to pick a substitute item. Finally, at the moment when the picker is at the shelf and unexpectantly finds the item is not available to pick, a substitute can then be presented to them for picking.
In previous research shared by Professor Daniel Corsten, the group learnt that the time and cost of finding and picking substitute items can be €2.50 and yet, for a typical grocer, the profit to be gained from that "saved sale" can often be just €1. A key challenge for retailers is to find new ways to "save the sale" and reduce the cost of substitution / substitutes?
In this meeting, we will explore and hear updates from retailers and delivery platforms such as Deliveroo, on their latest use of algorithms and technologies such as ESL's, that can improve productivity and reduce customer surprises!
This meeting is for retailers, brand owners and academics only.
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