A few days ago, the Institute for Operations Research and the Management Sciences (INFORMS) announced the final list of the 2022 Franz Edelman Outstanding Achievement Award. Alibaba, together with Hema, successfully entered the top six in the final.
It is understood that the Franz Edelman Outstanding Achievement Award, which has been held for 40 years so far, is the highest industrial application award in the global operations research and management science community, and is known as the "Oscar" of operations research. The award focuses on rewarding countries (regions) around the world for research projects or achievements that have made outstanding contributions in the field of operations research and management and have brought significant application value.
The finalists must not only be innovative in academic terms but must also be tested by the industry and clearly generate value in the process of practical application. It is reported that operations research and supply chain technologies are currently fully applied in Hema, including forecasting, inventory, price and flow control. Through big data and operational research models, Hema successfully realized fully automatic ordering, as well as fully automatic discount clearance and flow control. More generally speaking, it can improve the forecast accuracy and supply chain efficiency, and effectively reduce the loss and out-of-stock rate of agricultural products.
In the fresh food retail industry, supermarkets with high management levels generally have a loss rate of fresh products exceeding 10%. On the new retail side, Hema uses big data to control the loss rate below 5%. The application of new technologies in the digital supply chain will reduce the attrition rate by another 1% on this basis.
The technical person in charge of the supply chain and operations research of Hema said that only by closely linking technology with people's daily life, using algorithms to quantify the laws of supply and demand in life, and properly handling the mutual delivery relationship between complex factors, will it bring more convenience to public life.