Kenvue’s supply chain optimization initiatives include automating and digitalizing its manufacturing and distribution network, improving end- to-end integration.
help both. For example, Kenvue recently launched Perfect Store pilots with several customers, using AI to help them drive better store execution. As Kenvue receives the store’s daily sales data, it can analyze the information to identify any irregularities at the store level. Say a location that normally sells 10 items daily hasn’t sold any in three days. AI can alert the retailer, who can check whether the product is actually on the shelf. “With AI, we can be targeted in looking at point-of-sale trends,” Leonard says. “We’re seeing some great results to drive the consumer experience. “This is the next frontier,” he adds. “We’re driving all the way to the customer’s shelf.” Kenvue continues to add customers to the program. “Every customer we have approached expresses high interest in the program,” Leonard says. LEVERAGING AI AND PARTNERSHIPS The AI tool can help in adjusting not only for historical trends, but also can consider factors such as weather patterns or social media and events. So, if a summer music festival will be taking place in one city, the system can incorporate that data into its analysis. It might recommend boosting the inventory
of sunscreen in the area. “We’re able to be much more forward-looking and predictive,” Leonard says. While Kenvue and its retailer would typically sign a non-disclosure agreement, so the retailer can be con dent the data will be used appropriately, sharing information also requires a trusted partnership. Kenvue has worked diligently to foster such partnerships. The labor shortage has also helped accelerate this practice. In the current environment, many stores may have one or two employees in a store, and they’re trying to manage hundreds of products, Leonard notes. AI can help them. Kenvue is testing this in different regions, highlighting best practices, while adjusting to each region. A bodega in Asia will require a different approach than a big-box store in North America. “There’s a certain level of freedom that we have to use, but the concept and the spirit of using technology to drive consumer experiences is consistent,” Leonard says. Since becoming an independent company, Kenvue has not only streamlined transactions, but it has also established a new culture and way of interacting with customers. “It has been a whirlwind, but it has been exciting,” Leonard says. n
For instance, Kenvue might alert its customers to data on products that are running low. Then, the company can make more tailored suggestions regarding inventory replenishment. In the past, if a customer indicated it wanted, say, 50 cases of a product, Kenvue typically would just ship the cases. Now, it can let the retailer know that it could actually use 60 cases at its store in Southern California, which had a spike in sales over the past week. “We’re able to help retail customers prevent out-of-stocks on the shelf by having access to that data,” Leonard says. THE PERFECT STORE While moving products to a customer’s distribution center in the right quantity and time frame is a critical starting point, the products also need to get onto the store shelves. Many retailers are also focused on acing store execution, Leonard says. The goal is to avoid inadvertently having products in the distribution center or back room, while the shelves are empty. To help address this, Kenvue is initiating what it calls “The Perfect Store.” The goal is to help customers ensure on-shelf availability. Store shelves are the customer’s space, and not Kenvue’s. But partnering can
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