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Waitrose signs SAS to stock shelves
Software can predict supermarkets will be busy at Christmas...

By Will Sturgeon

Published: Wednesday 02 August 2006

UK supermarket chain Waitrose has signed a deal with business intelligence vendor SAS to forecast customer demand to ensure greater supply chain efficiency.

The software will correlate past product history with projected demand based on seasonal and casual variables - from public holidays and major events to the effect the weather has on our shopping habits.

In the most basic terms, the deal will make sure Waitrose has enough turkeys at Christmas and enough Pimms in summer and, while such items are common sense additions to any well-stocked supermarket, with thousands of other items from asparagus to zinfandel on the shelves the process requires a large amount of automation to ensure supply and demand across all products are aligned.

Rob Thompson, head of supply chain at Waitrose, said he expects the investment to repay itself through savings on wastage because, while supermarkets may fear running out of stock and disenfranchising customers, footing the bill for removing out of date foods from their shelves is hardly an appealing alternative.

The system was trialled at three Waitrose stores before being rolled out to more stores in the John Lewis-owned chain. The wider implementation is expected to be live in time to guide Waitrose through the hectic Christmas buying period.