A lot of the conversation about supply chain optimization occurs within retailer organizations. But how does that actually impact the customer experience? Jake O'Neal, corporate vice president of logistics and supply chain with Ace Hardware, has an answer.

One of Ace Hardware’s biggest supply chain challenges right now is figuring out how to be as flexible at possible when it comes to routing product from distribution centers to the stores. To do that, the company is vetting numerous vendors of new technology for route optimization, a highly complex function for which artificial intelligence seems ideally suited.

Traditionally, the retailer-owned cooperative has run routes that are “static in nature and design,” he says. The goal is “to be more dynamic in getting freight to our stores.”

A routing system driven by AI can do more than base decisions on history. Modern-day tools allow the retailer to be more predictive about future trends, O’Neal says. It can even cope with situations or types of  disruption that have never arisen before.

All of which amounts to an especially challenging task, given the huge number of SKUs that are carried within one of Ace’s physical stores. But it’s also important to be able to meet customer requests for items that aren’t on the shelves. “Behind the scenes, we’re always working on how to make that more efficient,” O’Neal says.

Looking at the next few years, O’Neal says he’s particularly excited about the way in which developing technology tools are being matched with individuals who have earned advanced degrees in supply chain management. Using AI, they’re already coming up with creative solutions that can drive further improvements and inspire others to embrace the technology as well. “Feeding that appetite is really exciting,” he says.