It's not just annoying for customers when the best-selling French baguette is sold out at the local bakery. The 35,000 or so bakeries in Germany also lose out when they sell out too early, but they don't want to have too many baguettes in stock either. Cologne-based startup Foodforecast promises to solve the problem with AI.
Foodforecast has already equipped 1,500 locations with its software. In addition to bakery chains such as Merzenich, Backhus and Göing, the system is increasingly being used in the retail and catering sectors, including in over 400 Aldi Nord bakeries and the restaurant and delivery chain Beets & Roots.
Training AI is like learning maths
The AI is connected to the tills and inventory management systems in the stores. The order and sales data is combined with additional sales factors such as the current weather forecast, school holidays, public holidays and other events such as impending rail strikes, and the resulting order quantities are stored in the inventory management system.
Justus Lauten, CEO of Foodforecast, trains the AI to continuously improve the system: "It's like maths lessons. First some exercises are solved, then new ones are added that the teacher has not yet explained in detail".
Convincingly accurate forecasts
Even initially sceptical employees were won over by the startup: "We were able to build trust because the AI delivered convincing results right from the start, with a prediction accuracy of 95 per cent. This reduces returns by an average of 30 per cent." With these successes, Foodforecast is optimistic about the future and is looking to continue to grow. The startup has recently acquired its first international client and is confident about its position. "Cologne is the most exciting city in the whole of North Rhine-Westphalia, and that makes us interesting for potential new employees".