17 December 2019

Pyaterochka to automate sugar procurement

Moscow, 17 December 2019 – X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE and MOEX ticker: “FIVE”), announces that Pyaterochka has completed the pilot phase of a project to automate the selection of suppliers for sugar, salt and other groceries. The big data-powered solution enables X5 to make procurement more efficient by automating nearly every stage of the process, from inventory planning to ordering and delivery scheduling. The system generates RFPs based on a number of criteria, including the current commodity exchange price, price history, and seasonality.

From April 2019, Pyaterochka has been successfully piloting the solution to supply 20 SKUs to 1,326 stores in the Volga macro-region. These SKUs include the most sought-after grocery items like sugar, salt, rice and other cereals, peas and flaked foods. The new system makes inventory planning more accurate and reduces human involvement. It is also capable of monitoring and analysing the entire process, assessing its own efficiency and identifying areas for improvement, while also accumulating user expertise to adjust processes when needed.

In the near future, X5 will roll out the solution across Pyaterochka’s entire network, adding more grocery SKUs to the automated procurement process, while also running pilots in other formats.