paretos is helping EDEKA, Germany’s largest food retailer, to optimize its supply chain using Decision Intelligence. Following a pilot project in one region at the beginning of 2024, paretos’ platform is now being rolled out nationwide, enabling sustained high savings per region.
Heidelberg, October 2024 – paretos is helping EDEKA, Germany’s largest food retailer, to optimize its supply chain using Decision Intelligence. Following a pilot project in one region at the beginning of 2024, paretos’ platform is now being rolled out nationwide, enabling sustained high savings per region.
paretos’ Decision Intelligence platform aids EDEKA in ordering goods efficiently for storage sites and redistributing inventory among warehouses. This process involves tracking availability across storage and regional facilities, as well as incorporating supplier terms into logistics planning.
For a nationwide retailer like EDEKA, with numerous markets, optimizing supply chains both economically and ecologically is incredibly complex. To achieve this, EDEKA considers more than 10,000 logistical parameters across availability, pricing, and freight services, leading to over 10 billion potential allocations per region. In the face of this complexity and reliance on manual Excel planning, EDEKA had previously managed inventory allocation – i.e., sourcing and distributing goods across storage sites – only a few times per year.
Within just 12 weeks, EDEKA configured and implemented an automated solution on paretos’ platform, one that understands all necessary parameters and can assess them optimally, including availability, prices, and routes. This software processes extensive data and offers users actionable solutions. It enables transparent calculations of cost drivers and constraints – such as goods receipt, picking, warehousing, intralogistics costs, and purchasing terms – allowing for significant annual savings in each region.
"paretos’ AI paretos significantly accelerates and enhances our workflows, giving us measurable cost advantages for a wide range of supply chain challenges. With Decision Intelligence, we can better manage day-to-day operations and respond more dynamically to short-term production bottlenecks or specific store demands,” said an EDEKA representative.
“Everyone benefits from more efficient logistics – customers, businesses, and even the environment. Reducing the complexity of supply chains is a crucial area for AI applications,” said Fabian Rang, CTO & Co-Founder of paretos. “It’s rewarding to see how our tool empowers planners in companies to optimally use their expertise, uncovering valuable savings potential. This is where technology and human expertise truly come together.”
The use of paretos for EDEKA’s inventory allocation is just the beginning of a long-term strategic partnership, with additional joint applications already underway.
Paretos is the leading AI-based Decision Intelligence platform for data-driven decision-making. With paretos, companies can quickly and reliably analyze complex data, generate optimized forecasts and decision recommendations, and implement actions – all through a clear no-code interface and simple integration solutions, even without prior data science knowledge.
Paretos was founded in mid-2020 by Fabian Rang and Thorsten Heilig. Their vision: anyone can make sound decisions at any time. Using the latest machine learning methods, the Heidelberg-based startup helps companies unlock their business potential. Since its launch in early 2021, multinational publicly traded corporations like Accenture and successful mid-sized companies like the Otto Group have relied on paretos’ platform.
The EDEKA Group, rooted in a medium-sized, cooperative model, operates on three levels: around 3,500 independent retailers nationwide give EDEKA its face. These retailers take on the role of local suppliers at the retail level, standing for food quality and enjoyment.
They are supported by seven regional wholesalers who deliver fresh goods daily to EDEKA markets and assist with everything from distribution to expansion. Coordination of EDEKA’s strategy takes place at its headquarters in Hamburg, managing national operations and the successful “Wir ♥ Lebensmittel” campaign. Here, goals across the organization are realized, such as establishing integrated IT structures or developing modern HR and training programs for retail. With its subsidiary Netto Marken-Discount, EDEKA has also achieved significant success in the discount sector, further broadening the company's extensive service offering.
In 2022, the EDEKA Group, with around 11,100 markets and 408,900 employees, achieved sales of €66.2 billion. With approximately 19,260 apprentices, EDEKA is one of Germany's leading trainers.
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Paretos is the leading AI-based Decision Intelligence software for optimized decision-making processes. With paretos, businesses can identify, plan, execute, and track business potentials through automated processes across the entire organization.
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