#Tokyo #DATAFLUCT #Co-op Group #Airlake Retail Agent

DATAFLUCT Launches AI-Driven Ordering System

In a significant move towards modernizing retail operations, DATAFLUCT, a Tokyo-based technology firm, has commenced a pilot program aimed at automating order processes in all 143 stores of the Co-op Group, formally known as the Co-op De-Ri Life Cooperative Union. This initiative is driven by the integration of their innovative self-managed store operation AI solution, the Airlake Retail Agent.

Background: Addressing Structural Issues and Labour Shortages

Historically, the Co-op Group's ordering processes encountered two major structural issues. First, the tripartite hierarchy involving headquarters for customer traffic forecasting, store managers for demand predictions, and sales representatives for final estimates created a convoluted ordering method. Second, the operations were fragmented by product categories, leading to isolated efforts by product category managers. Such an extensive involvement of personnel made unified decision-making and information sharing challenging, raising substantial risks due to potential labor shortages in the future.

With the aim of achieving efficient and sustainable operations, the Co-op Group seeks to integrate and automate these processes using AI.

Overview of the Pilot Experiment: Achieving Optimal Ordering through AI

The pilot project will harness the capabilities of DATAFLUCT's Airlake Retail Agent across several essential steps to automate the ordering process:

1. Two-Tier Demand Forecasting: The AI will predict daily visitor numbers on a store-by-store basis, utilizing that data to project sales figures for various products.

2. Accurate Order Quantity Calculations: The AI will consider various constraints such as predicted sales figures, current stock levels, delivery lead times, ordering schedules, and minimum order quantities to automatically calculate necessary order quantities. These calculations will then seamlessly integrate with the Co-op Group's ordering system for automated order placements.

From January 2026, testing will initially focus on categories with more immediate potential for impact, specifically in fresh foods, groceries, and prepared meals. By October 2026, the pilot will commence in select areas, with an aim for full operational deployment in March 2027, ultimately expanding to include all product categories.

Comments from Co-op De-Ri Executives

Hitoshi Honma, Senior Executive Officer of Co-op De-Ri’s Store Business Division, emphasized the project's pivotal role in driving a proactive digital transformation (DX) within the Co-op Group. Highlighting a deliberate approach to develop a demand forecasting system tailored to product management, he noted that this undertaking is not merely about reducing workloads but fundamentally reshaping the retail environment to enhance the overall customer experience and contribute to member well-being.

This project, which has been three years in the making, signifies the initial steps towards