Dollar General deploys AI for supply chain

Dollar General is deploying artificial intelligence to coordinate planning across its entire North American supply chain. The retailer is partnering with technology firm Relex Solutions to implement the system, according to an Aug. 27 press release from the company.

This AI platform will manage core supply chain functions. It handles store replenishment, ordering schedules, lead times, supplier coordination, and fulfillment methods. Demand factors like sales patterns will be integrated directly into the planning process. This ensures distribution centers and stores operate from the same unified data set.

Unified planning platform

Jeff Vaughan, SVP of global inventory management at Dollar General, explained the platform's benefit. "The platform brings forecasting, replenishment, and allocation planning into a single environment, giving our teams greater visibility across the network," he said in the release. This unified approach is central to the initiative.

Dollar General's leadership has emphasized a broader push toward AI integration. CEO Todd Vasos discussed the effort during an Aug. 27 earnings call. He stated the company is building agentic operating systems focused on reshaping and optimizing workflows. The goal is to improve productivity organization-wide. Driving efficiencies through such technology can help mitigate cost pressures, Vasos noted. The company has been looking to increase its use of AI throughout its operations.

Broader industry adoption

Other major companies are also using Relex's technology to enhance supply chain operations. Their implementations highlight a trend toward AI-driven inventory and planning systems.

Lowe's, for instance, announced plans to scale its partnership with Relex in April in a bid to improve inventory management. At the time, the retailer said full implementation is slated for early 2027.

In March, wholesale distributor United Natural Foods, Inc. said it intended to roll out Relex's AI inventory planning technology across 12 distribution sites by the end of its fiscal year on Aug. 1. Last year, Guitar Center also implemented Relex technology to improve inventory planning capabilities and overall supply chain visibility to reduce stockouts and overstock.

The deployment across Dollar General's vast network of 21,000 stores and 34 distribution centers marks a significant step in its operational strategy. The AI system is designed to bring cohesion to this extensive operation.