Foreigning us now for five insightful minutes is Caitlin Allen.
Speaker ACaitlin is the SVP of market at Simbee.
Speaker AAnd Caitlin is here to share her thoughts on the puts and takes of deploying AI and robotic automation at scale inside retail organizations.
Speaker ACaitlin, let's start off with this.
Speaker AWhat, what do you think are retail executive buyers largest misconceptions when evaluating retail automation?
Speaker BIt's no longer about if automation is driving value, but how.
Speaker BAnd so following where industry leaders invest is important.
Speaker BAnd we see the top CEOs and CFOs prioritizing three things.
Speaker BThe first is data quality, then scalability and then store coverage.
Speaker AYes.
Speaker BKnow with the onset of AI, modern data models are needed.
Speaker BAnd yet poor data is the Achilles heel of most automation solutions.
Speaker BAnd so we see vendors, we see retailers rather working with vendors that, that really work with high data standards, defining those necessary elements in history and quality related to scalability as they're reinventing retail operations.
Speaker BRetail, retail's best are testing automation in areas like on shelf availability and price integrity to get started.
Speaker BAnd then they're looking at scaling other use cases be it across allocation planning, forecasting, planogram compliance or what have you.
Speaker BAnd then the final piece is store coverage.
Speaker BAnd you know, today retailers are tracking when products arrive and when they leave, but they have, they lack visibility into their store of what happens in between that that point in time.
Speaker BAnd so top CEOs and CFOs are prioritizing autom that surface the actions that matter most that they can start to understand what true execution looks like in the store.
Speaker BAnd I would say in closing that all of those three priorities really expose the misconception that leads when evaluating retail automation which is over rotating on one device type.
Speaker BThis is really a conversation that needs to be about combining sensors for optimal coverage and data quality.
Speaker COkay, well Caitlin, we know that Simbi uses computer vision AI.
Speaker CIt's still new to some of the retailers listening to our program.
Speaker CSo can you help us identify what differentiates good computer vision AI from bad?
Speaker BSure.
Speaker BSo computer vision is what's used by things like fixed cameras on the shelf or autonomous, autonomous mobile robots, et cetera, just to kind of ground that in something that we can all see.
Speaker BAnd I would say one factor really separates high value computer vision from the rest with two key supporting elements.
Speaker BSo the main thing that's important is value.
Speaker BThat's been proven at scale across multiple chain wide deployments, in multiple retail subsectors, in geographies and use cases where there's many applications.
Speaker BIt's easy to claim that you have a product that does certain things.
Speaker BBut then when, when vendors or when retailers dig in to verify vendor claims, they often find out that, you know, claims might be a little hand wavy and really like.
Speaker BThe reason I start with that non technical answer is this.
Speaker BThis is about the business outcome, right?
Speaker BThat's how to, to really take a sense for whether computer vision is good or bad.
Speaker BAnd then the supporting points for that are really around depth perception and total cost of ownership.
Speaker BSo depth perception is basically another way of saying that good computer vision sees in 3D mobile robots have become known as the most accurate and scalable and cost effective retail solution because they can move around and that eliminates data coverage gaps.
Speaker BAnd that also relates to the topic of total cost of ownership.
Speaker BWhen you have just fixed cameras, for instance, you have hundreds of them per store.
Speaker BThat really drives up your costs and your maintenance as well as your risk of damage.
Speaker BWhereas a robot really requires minimal infrastructure and it's kind of the difference of managing just one device versus hundreds.
Speaker BSo I would say bottom line, computer vision is really about having proven results at scale in prior applications.
Speaker BAnd that's especially the case when it is backed by a solid business case that spans depth perception and cost efficiency.
Speaker ACaitlin Oftentimes, and we've lived this, we see a disconnect between the stores, organizations and the HQ side of a retail operation.
Speaker ASo what do you think are the most significant disconnection points between those two sides of the operation when it comes to retail tech deployments?
Speaker AAnd, and what, if anything, can both sides do about it?
Speaker BSuccessful rollouts?
Speaker BChris they don't just test technology.
Speaker BThey're really more dedicated about building momentum across the organization.
Speaker BAnd so we see the best retailers bridge that gap by doing three things.
Speaker BPicking representative pilot stores that reflect real business realities like store size, sales volume, you know, operational readiness, tech savviness.
Speaker BWhen they select their pilot stores, the second thing they do is stack rank their KPIs.
Speaker BAnd that's really about prioritizing the one or two that matter most.
Speaker BAnd that's usually something like profitability and on shelf availability and sometimes price accuracy.
Speaker BAnd then the third piece is around engaging store teams early, right?
Speaker BNo one wants something to be thrown over the fence at them.
Speaker BSo engaging store teams in decision making, thorough training, development, and emphasizing automation's role and being a power tool for them, not as a replacement of labor, really brings things over the line for all parties involved.
Speaker CThe best thing about what happens when what you just were talking about takes place in a store is that there's some really big aha moments for those customers who are deploying robotics.
Speaker CDo you have any good examples that you could share with us quickly?
Speaker BTwo come to mind.
Speaker BSo most of those top performing stores that we're talking about, they find that 60% of the items that they believe to be out of stock actually to be in store.
Speaker BSo over half of the items they think they can't sell are there to be sold which is an amazing aha.
Speaker BAnd then I think the second Ann is really around kind of longer term use cases of understanding what real time shelf conditions and precise item location can do to inform things like better e commerce accuracy, automated reordering and demand forecasting and then merchandising at scale to the effect of things like retail media and working with suppliers and vendors.
Speaker BAnd that's such a privilege to see those kind of ahas go off because it's kind of rare to see your business in a new light.
Speaker BSo that's one of the things I love about my job.
Speaker AGreat stuff, Caitlin.
Speaker AThank you.