Viva Energy selects Blue Yonder for OTR’s AI retail overhaul

Viva Energy Australia has selected Blue Yonder to provide AI-powered digital solutions for the OTR Group's convenience store operations across the country.

The OTR Group, which is part of Viva Energy, operates roughly 1,000 service stations throughout Australia. These stations include Shell Reddy Express, On The Run (OTR), and Store24 sites, and are supplemented by 100 quick service restaurants and 275 Smokemart and Giftbox (SMGB) locations, as well as the manufacturing and supply of Krispy Kreme products in South Australia. With growing operations, the company faces the logistical challenge of localising product selection and managing stock efficiently across various demographic areas.

Transformation objectives

Seeking to enhance its in-store experience, OTR Group has engaged Blue Yonder to deliver its Category Management solution and demand planning capabilities. These solutions are designed to help OTR Group improve space planning, demand forecasting, and order fulfilment at a granular level within stores.

Blue Yonder's system will use artificial intelligence to enable more accurate forecasting by SKU, store, and day. The platform will support optimisation of inventory levels through segmentation of stores and calculation of the appropriate safety stock levels. It is also expected to automate inventory management in line with changing consumer preferences, improve management of new and discontinued products, and expand offerings to better meet evolving customer expectations.

Standardising processes

Natalie Dalbo, Chief Customer Officer for OTR Group, commented on the reasons for selecting Blue Yonder's solutions.

"Following the strategic acquisition of convenience store networks from Coles and the more recent acquisition of OTR and SMGB, there was a need to standardise range management, demand forecasting and fulfilment processes on a single platform for our Category and Supply Chain teams. We believe that this whole company view of demand will enable us to switch sources and modes of supply to optimise the mix and service to stores.

"We needed to replace legacy systems with integrated solutions that could meet current and future needs to optimise end-to-end product availability across our store network. Blue Yonder solutions met all our requirements, both from a focused capability and a broader technology perspective. We look forward to collaborating with the Blue Yonder team to help us realise our goal of being the leading convenience and mobility retailer in Australia."

Technology focus

Blue Yonder's technology, incorporating artificial intelligence and machine learning, is being implemented to help OTR Group adapt its store operations to consumer needs more efficiently. The company's approach is intended to enable rapid deployment and streamlined business operations.

Antonio Boccalandro, President, APAC at Blue Yonder, said,

"OTR Group is leading a game-changing transformation of its convenience retail network, focused on customer centricity, and we are proud to welcome them among our customers. Blue Yonder solutions for retailers are engineered to scale, perform, and operate under the highest volumes seen on the market. They transform store operations with a composable approach, delivering rapid time-to-market, enhancing scheduling and automation tasks like inventory management and planogram updates, which are essential for increasing customer satisfaction, advancing store operations, and driving profitability and rapid return. We cannot wait to support Viva Energy in accelerating their ongoing digital transformation."

Operational context

Viva Energy refines, imports, and delivers energy to Australians, supplying about a quarter of the country's liquid fuel requirements and operating more than 1,300 service stations nationwide. Through OTR Group, it has expanded its retail footprint significantly. The company's investments in digital transformation are seen as a step towards standardising operations and adapting to increasing demand for tailored, convenient shopping experiences at fuel and charging stations.