BP has signed an agreement with RELEX solutions to provide AI-based technology to enhance its convenience offer and meet shifts in customer behaviour.
RELEX Solutions’ unified supply chain and retail planning platform will be used across BP’s over 300 company-owned retail sites and Wild Bean cafes in the UK to provide in-depth forecasting and analytics to anticipate and meet fluctuations in customer demand and to support supply chain planning.
Jo Hayward, VP for convenience in Europe and global convenience strategy and proposition lead at BP, said supply chain optimisation is critical for BP’s convenience growth ambitions.
“Our strategy is to offer customers on the move with quality food and coffee at our network of convenient roadside locations. With the RELEX platform, we’re aiming to strike the balance between maximising availability and minimising food waste – optimising each stage of the supply chain from the warehouse to the store, so that our customers can always rely on us for what they want, when and where they want it.”
Between 2023 and 2030, BP aims for around half of its cumulative $55-65 billion transition growth engine investment to go into convenience, bioenergy, and EV charging, with a plan to double convenience growth gross margin from a 2022 base of around $1.5 billion and double strategic convenience sites to more than 3,400.
Mikko Kärkkäinen, Co-founder and Group CEO at RELEX Solutions, said they’re delighted to collaborate with BP to optimise their supply chain and support their goal of reducing waste.
“Our AI-based forecasting and replenishment solution provides in-depth analytics and forecasting data to help identify and manage fluctuations in product demand. It uses a wide range of datapoints, including weather forecasts, price and other commercial parameters with sales history and variations in regional preferences, to provide a bespoke demand forecasts for every product in every store.
“This leads to the right product levels in every store increasing customer satisfaction, sales and reducing food waste.”