Dynamic Plus Launches AI-driven Initiative to Reduce Food Waste in Japan
In Japan, approximately 4.72 million tons of food waste are generated annually, with households and businesses contributing equally to this pressing issue. Among the various sectors, the retail industry faces significant challenges in dealing with food spoilage, especially as products approach their expiration dates. This has led to a growing demand for solutions that not only reduce environmental impact but also promote sustainable business practices.
To address this challenge, Dynamic Plus has initiated a pilot project that employs artificial intelligence (AI) for dynamic pricing strategies aimed at reducing food waste and increasing sales. Previously, decisions regarding discount timing and amounts were largely based on staff experience and judgment. The innovative approach introduced by Dynamic Plus leverages historical sales data and demand forecasts processed by their proprietary AI technology to optimize these discount strategies. This method provides a dual benefit of lowering environmental footprints while ensuring effective supermarket operations.
The pilot program utilizes past sales data along with real-time sales trends and demand forecasts. The AI developed by Dynamic Plus automatically calculates the optimal discount rates each day, facilitating timely adjustments made by store staff. This initiative will not only examine the effectiveness of these pricing adjustments but will also gather valuable insights to enhance the practicality and operational efficiency of the pricing optimization strategy. The knowledge gained from the pilot will guide further development and implementation for broader application in the future.
Established on June 1, 2018, Dynamic Plus Inc., located in Shinjuku, Tokyo, focuses on developing dynamic pricing systems using AI and mathematical modeling. The company's representative, Hideto Hirata, also serves as an executive at Mitsui & Co. Dynamic Plus's services include dynamic pricing solutions and revenue management services tailored to various industries, providing consulting that utilizes mathematical analysis and AI for pricing strategies.
The innovative efforts by Dynamic Plus reflect a significant step towards addressing the critical issue of food waste in Japan. As they continue to refine their approach, they are set to make impactful changes in the retail sector, combining technological advancement with environmentally responsible practices, thereby paving the way for a more sustainable future.
To address this challenge, Dynamic Plus has initiated a pilot project that employs artificial intelligence (AI) for dynamic pricing strategies aimed at reducing food waste and increasing sales. Previously, decisions regarding discount timing and amounts were largely based on staff experience and judgment. The innovative approach introduced by Dynamic Plus leverages historical sales data and demand forecasts processed by their proprietary AI technology to optimize these discount strategies. This method provides a dual benefit of lowering environmental footprints while ensuring effective supermarket operations.
Overview of the Pilot Project
The pilot program utilizes past sales data along with real-time sales trends and demand forecasts. The AI developed by Dynamic Plus automatically calculates the optimal discount rates each day, facilitating timely adjustments made by store staff. This initiative will not only examine the effectiveness of these pricing adjustments but will also gather valuable insights to enhance the practicality and operational efficiency of the pricing optimization strategy. The knowledge gained from the pilot will guide further development and implementation for broader application in the future.
About Dynamic Plus Inc.
Established on June 1, 2018, Dynamic Plus Inc., located in Shinjuku, Tokyo, focuses on developing dynamic pricing systems using AI and mathematical modeling. The company's representative, Hideto Hirata, also serves as an executive at Mitsui & Co. Dynamic Plus's services include dynamic pricing solutions and revenue management services tailored to various industries, providing consulting that utilizes mathematical analysis and AI for pricing strategies.
The innovative efforts by Dynamic Plus reflect a significant step towards addressing the critical issue of food waste in Japan. As they continue to refine their approach, they are set to make impactful changes in the retail sector, combining technological advancement with environmentally responsible practices, thereby paving the way for a more sustainable future.
Topics Consumer Products & Retail）
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