Case study
Vision AI solution enables Sam’s Groceria retail chain to reduce operational costs by 25%
OUR CLIENT
With a goal of helping people live healthier lives, Sam’s Groceria, a popular grocery store chain in the Asia-Pacific region, prides itself on providing customers with the freshest, high-quality food at reasonable prices. The company is privately owned and operated.
THE CHALLENGE
Grocery store wanted data insights to decrease stock-outs
Store managers struggled to manage inventory, with issues ranging from out-of-stock items, lack of on-shelf product visibility, misplaced items, and theft. The company wanted innovative, user-friendly insights about inventory, shopper flow, and customer demographics to make informed decisions to:
- Boost sales - by reducing out-of-stock items
- Increase customer satisfaction - by addressing shopper complaints
- Optimize store operations - by eliminating bottlenecks and points of friction
- Reduce shrinkage - by improving store security
THE TRANSFORMATION
AI vision intelligence solution provided curated data, helped store staff make informed decisions
UST implemented an artificial intelligence (AI)-based vision intelligence solution with 15 smart cameras installed at each store to collect data on shopper headcounts, customer flow, dwell times in different areas of the store, and on-shelf inventory. Deployed on Microsoft Azure Cloud, the vision AI solution captures still images and video footage throughout stores and can process both structured and unstructured data. The intuitive, customizable dashboard and detailed reporting helped store managers, procurement staff, and merchandising teams:
- Improve staff productivity - by quickly identifying areas of the store that need attention
- Reduce customer complaints - by proactively resolving issues
- Ensure consistent product availability - with real-time on-shelf inventory monitoring
- Offer better product assortments - based on customer-preference insights
- Optimize ad placements - that align with shopping patterns and customer demographics
THE IMPACT
Real-time in-store insights increased sales by 20%
With vision-AI data insights extending far beyond inventory monitoring, Sam’s Groceria achieved these benefits:
- 25% reduction in operational costs
- 20% increase in sales and reduction in shrinkage
- 15% improvement in employee productivity and reduction in customer complaints
- 15% improvement in vendor-managed inventory compliance
- 10% increase in direct store delivery monetization