Nestlé Boosts Ukraine REX Visibility, Efficiency With AI Optimizations
Nestlé is in the midst of a multiyear transformation strategy that has included investing in digital optimizations and creating a "marketing of the future" model.
As part of this, in its Ukraine market, the company saw an opportunity to overhaul retail execution that had historically suffered from a lack of real-time visibility in its stores. In 2019, the business segment sought to digitalize its merchandising operations and improve data quality to solve this challenge.
The company has worked with effie.ai for the effort, building a digital twin of retail execution so that each store, SKU and action can be captured and verified in near real time. As of this year, the company has completed the following for its 1,500 SKUs across seven categories and 45,000 store visits per month:
- Tracked shelf activity via image recognition, GPS and timestamps.
- Unified agreements, planograms and promo rules into machine-readable formats.
Since implementation, this has increased data accuracy from 75% to 97% while achieving a 60% reduction in shelf audit time, according to effie.ai. Additionally, the company reduced its operational costs and increased promotional availability from 84% to 95%.
Nestlé is currently advancing these efforts, aiming to embed agentic functionality.
