**Virginia**: Helios AI has partnered with Walmart to improve forecasting capabilities for agricultural commodities. The collaboration aims to offer insights into supply chain risks and pricing, with AI technology providing tools for better decision-making in response to climate and geopolitical challenges.
Helios AI, a technology startup based in Virginia, has entered into a partnership with Walmart to enhance the retailer’s capabilities in forecasting prices for agricultural commodities. This collaboration emerged from Walmart’s Open Call for U.S. suppliers event held in September 2023, which marked the first time the company invited technology service providers to pitch their solutions.
Francisco Martin-Rayo, CEO of Helios AI, noted that the startup was the first tech service company to receive a “golden ticket” from Walmart. The announcement of the partnership was delayed until a recent software update was completed on Helios’ forecasting tools.
The AI-driven technology developed by Helios aims to assist food suppliers and manufacturers in understanding the risks to their supply chains more effectively. It offers price forecasting capabilities along with proprietary risk modelling, which can predict significant fluctuations in commodity prices several months in advance. Martin-Rayo explained, “We provide commodity buyers and sourcing teams with everything they need to know about the growing season.” The platform tracks risks for approximately 50 commodities, encompassing 90% of global agricultural districts, enabling timely alerts regarding events that could impact key export or production regions, including climate-related factors.
Walmart, as the largest grocery retailer in the United States, sources agricultural products on a global scale and acknowledges that disruptions in its supply chain can lead to lost sales and difficulties in meeting customer needs. The retailer has actively invested in supply chain automation enhanced by AI technologies to optimise its grocery network operations.
Martin-Rayo highlighted the challenging landscape of agricultural production over the past few years, influenced by climate variability, geopolitical tensions, and the COVID-19 pandemic. At the same time, advances in AI technology have become more pronounced.
With a large network comprising over 4,600 stores in the U.S. and a vast array of stock-keeping units (SKUs) required daily, ensuring a robust and sustainable supply chain is a critical focus for Walmart. Martin-Rayo remarked that the collaboration with Helios will enable Walmart to assess medium- and long-term climate risks tied to its global agricultural sourcing strategy.
“Walmart is leading the way when it comes to leveraging artificial intelligence to strengthen its supply chain,” he said. “Helios winning the ‘golden ticket’ is not only a great testament to our technology but also proof that there are urgent needs from procurement teams to climate-proof their supply chains — especially those at the most globalised levels.”
In addition to working with Walmart, Helios AI has announced a new suite of features designed to support agri-food procurement professionals and supply chain managers in making informed decisions. These innovations include providing detailed weather projections for up to a year, allowing procurement specialists to more accurately estimate supply and pricing. The software also facilitates the analysis of historical pricing data and current market conditions related to various commodities, enabling users to interactively assess prices based on geographical origin, variety, and organic status.
One of the initial testing cases for the Helios platform involved Libby’s, which benefited from a forecast predicting significant rainfall in China that would affect mandarin supply. According to Chris Derose, president of Libby’s, their supply chain team heeded the advice from Helios and made an early purchase, securing a year’s supply of mandarins at a price 15% lower than what it would have been six weeks later when prices had risen.
In the past year, Helios AI has successfully predicted various commodity supply disruptions, including a cocoa price spike, avocado shortages in Peru, a decrease in coffee supply from Vietnam, and a pumpkin shortage in the UK due to unexpected climatic conditions affecting agriculture in Turkey. Martin-Rayo highlighted the intricate nature of the food supply chain, noting that Helios focuses on the links within it, excluding growers and direct consumers.
Looking ahead, Martin-Rayo emphasised the importance of ongoing improvements in AI forecasting tools to address the complexities of agricultural supply chains, especially in light of persistent geopolitical and climate challenges. He stated, “I think it’s going to be a really tough 10 years in terms of geopolitical, climate and crop volatility we continue to see. We are going to need an increased level of support across the food supply chain to mitigate those risks for businesses and consumers.”
Source: Noah Wire Services
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