Primark this week revealed a new partnership with AI-powered supply chain platform Kallikor to improve its distribution operations and support its international expansion.
The brand will use digital twin technology to create virtual replicas of its distribution centres, allowing it to test potential operational changes before committing to costly investments.
The technology will enable Primark to assess different warehouse layouts, staffing requirements and stock movements, helping it identify efficiencies while minimising disruption to its store network.
Using the retailer’s own operational data, the simulations will also allow teams to evaluate the impact of proposed changes on costs, capacity and customer service.
Primark director of supply chain Adam Hoccom said the partnership would play a key role in supporting the retailer’s growth ambitions.
“As Primark continues to grow across markets, ensuring our supply chain is designed to support that ambition is critical,” he said.
He added that the technology would help the business make more informed investment decisions by allowing it to test changes to distribution centre layouts and wider network operations before implementation.
The partnership will initially focus on improving distribution centre operations, with plans to extend the technology to assess automation opportunities, capital investments and future supply chain expansion.
Primark is ramping up investment in its logistics infrastructure ahead of its move into home delivery in Great Britain.
Last month, it confirmed plans to launch home delivery for the first time, marking a major strategic shift after years of resisting ecommerce.
Primark also acquired a highly automated fulfilment facility in Sheffield to support the rollout and strengthen its digital capabilities alongside its store-led business model.
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