Afresh Co-Founder Nathan Fenner On How AI Can Help Grocers Manage Supply Chains - Ep. 208
Nov 21, 2023
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Nathan Fenner, cofounder and president of Afresh, an AI startup that helps reduce food waste, discusses how their platform optimizes supply chains for grocery stores. They use machine learning and AI models to handle messy data generated by fresh produce, leading to informed decisions. They also address the challenges of managing supply chains for grocers, emphasizing the importance of efficiency and the opportunity to transform the food industry.
AFresh uses AI and machine learning to optimize grocery supply chains, focusing on reducing food waste in the fresh food sector.
By addressing challenges such as demand forecasting and unreliable data, AFresh helps grocery retailers make informed inventory management decisions, reducing waste and improving sales.
Deep dives
AFresh: Using AI to Eliminate Food Waste and Improve Grocery Supply Chain
AFresh is a supply chain and inventory management solution for the grocery industry, with a focus on fresh food. Their mission is to eliminate food waste and increase access to fresh food. They noticed that the future of the grocery industry lies in fresh food, and traditional software solutions built for non-perishable goods were inefficient for fresh items. AFresh utilizes cutting-edge machine learning and AI to tackle challenges such as demand forecasting, understanding inventory, and optimizing supply chain decisions in the face of unreliable data. By addressing these issues, AFresh has had a significant impact, with 13% of all produce sold in US grocery stores being ordered through their tool.
Food Waste: A Major Contributor to Climate Change
Food waste not only has negative implications for food security but also contributes significantly to climate change. It is estimated that roughly one-third of all food produced worldwide is wasted, leading to the emission of greenhouse gases. Food waste occurs at every stage of the supply chain, with developing countries facing challenges in cold chain infrastructure and developed countries experiencing waste primarily at the retailer and consumer level. AFresh's focus on optimizing the fresh food supply chain helps reduce food waste, mitigating the environmental impact and aligning with initiatives to combat climate change.
The Complexities of Managing Fresh Food Inventory
Managing fresh food inventory presents unique challenges due to the perishable nature of the products and unreliable data inputs. AFresh tackles these challenges through machine learning models that forecast demand, model inventory positions, and translate insights into optimized decisions. Machine learning helps predict variable demand driven by factors such as changing prices and promotions. It also enables accurate understanding of inventory by considering perishability and unreliable data sources. By addressing these complexities, AFresh empowers grocery retailers to make more informed inventory management decisions, reducing waste and improving sales and in-stock rates.
The Future of AFresh: A More Efficient and Integrated Supply Chain
While AFresh is excited about innovative ideas like rooftop gardens and transforming the food industry, their primary focus is on building a more efficient and integrated supply chain. By leveraging the power of data and technology, AFresh aims to bring the supply chain online, making it digital, connected, and optimized. They envision a future where the food system is substantially more efficient, reducing waste, and achieving greater sustainability. Their pragmatic approach aims to capitalize on existing resources and bring about tangible improvements in the grocery industry.
Talk about going after low-hanging fruit. Afresh is an AI startup that helps grocery stores and retailers reduce food waste by making supply chains more efficient.
In the latest episode of NVIDIA’s AI Podcast, host Noah Kravitz spoke with the company’s cofounder and president, Nathan Fenner, about its mission, offerings and the greater challenge of eliminating food waste.
Most supply chain and inventory management offerings targeting grocers and retailers are outdated. Fenner and his team noticed those solutions, built for the nonperishable side of the business, didn’t work as well on the fresh side — creating enormous amounts of food waste and causing billions in lost profits.
The team first sought to solve the store-replenishment challenge by developing a platform to help grocers decide how much fresh produce to order to optimize costs while meeting demand.
They created machine learning and AI models that could effectively use the data generated by fresh produce, which is messier than data generated by nonperishable goods because of factors like time to decay, greater demand fluctuation and unreliability caused by lack of barcodes, leading to incorrect scans at self-checkout registers.
The result was a fully integrated, machine learning-based platform that helps grocers make informed decisions at each node of the operations process.
The company also recently launched inventory management software that allows grocers to save time and increase data accuracy by intelligently tracking inventory. That information can be inputted back into the platform’s ordering solution, further refining the accuracy of inventory data.
It’s all part of Afresh’s greater mission to tackle climate change.
“The most impactful thing we can do is reduce food waste to mitigate climate change,” Fenner said. “It’s really one of the key things that brought me into the business: I think I’ve always had a keen eye to work in the climate space. It’s really motivating for a lot of our team, and it’s a key part of our mission.”
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