BP has signed an agreement with RELEX Solutions, a provider of unified supply chain and retail planning solutions. The deal will see the forecourt operator implement new forecasting and replenishment capabilities in its convenience retail business.
The RELEX platform leverages AI to provide forecasting and analytics to anticipate and meet fluctuations in customer demand. BP stated that the technology will support supply chain planning across its over 300 company-owned retail sites and Wild Bean Cafes in the UK.
The company noted that with over half of customers to its retail stores now visiting on a food-only mission, rather than for fuel-only or food and fuel, product availability is key to maintaining a “great customer experience”. The investment in the optimisation of its retail supply chain is expected to help BP ensure it has the “right products, in the right place, at the right time”.
Jo Hayward, VP for convenience in Europe at BP, commented: “Supply chain optimisation is critical for BP’s convenience growth ambitions. Our strategy is to offer customers on the move with quality food and coffee at our network of convenient roadside locations. With the RELEX platform, we’re aiming to strike the balance between maximising availability and minimising food waste – optimising each stage of the supply chain from the warehouse to the store, so that our customers can always rely on us for what they want, when and where they want it.”
Following the UK rollout, the RELEX Solutions platform will potentially be expanded to more of BP’s 3,300 company-owned retail sites across Europe.
In recent months, BP has hired executives from the likes of Lidl, Sainsbury’s, and Waitrose to support plans to improve its convenience offer in the UK. It also recently joined the supermarkets in offering exclusive discounts in its forecourt stores for members of its loyalty scheme.
NAM Implications:
- Supply chain availability helps sales.
- And accurate forecasting helps reduce the cost of holding buffer stock just-in-case.
- Therefore, gains all round.
- Rivals, please note…
