AI Case Study

Gousto, a British meal kit retailer uses genetic algorithms to optimise warehouse to determine factory layout and movement of boxes through the floor

Gousto, a British meal kit retailer, uses proprietary algorithms to optimise floor layout and movement of boxes in the warehouse. Resulting operational cost savings have led to 15% salary hike for warehouse employees.

Industry

Consumer Goods And Services

Food Beverage And Drugs

Project Overview

"Three areas in which Gousto currently use AI are: Personalisation, Forecasting and Warehouse Optimisation.

They also use genetic algorithms is in Factory by employing multiple genetic algorithms to determine the layout of the Factory and how boxes are routed through the Factory

There are billions of possible combinations for the above problem, which is far too many for the human brain to solve. As a result, we have built our own algorithms and the impact has been HUGE: over the past two years, our Factory throughput has doubled. This reflects a sustained cross-team effort to harness the power of technology, and has enabled us to reinvest where it matters by increasing Factory staff salaries by 15% in 2018."

Reported Results

Net savings in factory operations led to 15% salary increase in wages for factory employees

Technology

"Genetic algorithms, used for multivariate optimisation, follows the same idea as biological evolution (mutation, cross-over between solutions). The algorithm ensures that any final solution already fulfils any constraints. In our case, we wanted to make sure that we provided a variety of different recipes so our genetic algorithm was set to minimise for total recipe similarity. "

Function

Supply Chain

Logistics

Background

Gousto is a British meal kit delivery company which is using AI to optimise its operations - online and on the floor

Benefits

Data