Kroger pilots RFID and AI to improve inventory management in 1,500 bakeries

Kroger is piloting radio frequency identification (RFID) technology at 1,500 store bakeries to improve inventory management, Supply Chain Dive reported. The pilot has achieved a 98% read performance, enabling nearly 70% faster inventory counts and a 50% reduction in waste.

The grocery chain is also sharing computer vision data and machine learning insights with suppliers to improve product availability. This approach provides better signals for faster decision-making and clearer actions, according to Supply Chain Dive.

Kroger’s AI tool integrates data from 20 pipelines and offers visibility down to the store-item level. It helps identify and mitigate risks earlier by combining sales, inventory, and sell-through data, leading to improved replenishment and markdown decisions.

The company plans to expand RFID technology to more than 2,300 stores by 2029. Additionally, Kroger is investing in supply chain facilities, including an automated site in Franklin, Kentucky, expected to be completed in 2028 to support regional divisions.

Despite these advances, Kroger has scaled back on some previous technology and automation efforts, indicating a selective approach to innovation in its supply chain operations.