Stater Bros. Markets is scaling its partnership with Afresh Technologies, extending AI-driven inventory management beyond produce into additional fresh departments while implementing distribution center (DC) forecasting.
The expansion follows strong results from the California grocer’s recent produce deployment, which reduced shrink and improved product availability.
The 171-store chain will deploy Afresh’s Fresh Replenishment platform across more fresh categories while adding DC Forecast to guide upstream procurement decisions. The combined system connects real store demand directly to buying operations, creating what Stater Bros. describes as a unified approach to managing fresh inventory from store ordering through distribution center purchasing.
“We’ve been impressed with Afresh’s partnership with our teams,” said Bertha Luna, EVP of store operations at Stater Bros. Markets. “They took the time to earn trust, and the results speak for themselves – produce shrink is down, shelves are full, and our customers notice the difference. When teammates see a solution that supports their work, adoption follows naturally.”
Produce Results Drive Expansion
The initial Fresh Replenishment deployment in produce delivered sustained improvements in product availability and ordering accuracy through AI-powered recommendations. Stater Bros. achieved significant reductions in food waste while optimizing inventory levels and freeing up working capital. Store-level adoption of Afresh’s AI order recommendations remained strong, indicating operational trust in the platform.
The produce results prompted Stater Bros. to address similar challenges upstream. For decades, the retailer’s produce buying relied on expertise and hands-on merchandising practices. As the company modernized operations, it adopted traditional forecasting tools designed for center-store categories. Those systems struggled with fresh products’ complexity and variability.
Fresh categories require frequent ordering, rapid response to changing conditions and close alignment between stores and distribution centers. Center-store forecasting tools treat demand as static, relying on weekly snapshots and historical averages. Those limitations became pronounced during promotions and for commodity items such as bulk and catch-weight products, often resulting in store shortages, excess aging inventory or missed sales.
“Much of Stater Bros.’ produce procurement remained manual – despite the presence of center-store technology – with buyers spending hours synthesizing data across tools and spreadsheets to answer fundamental questions, such as how many strawberries to order two weeks in advance,” the company said.
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Fresh-specific AI for distribution
Afresh’s DC Forecast provides an AI platform purpose-built for fresh buying nuances, including SKU mismatches, multiple vendors and frequent delivery schedules. Built on real store demand and an understanding of how inventory flows, turns and ages across the network, the system enables teams to plan proactively and respond more effectively to supply chain changes.
“Fresh operations don’t follow a single, predictable path – signals change, conditions shift and outcomes vary,” said Afresh CEO Matt Schwartz.
“By extending the same intelligence from store ordering into DC procurement, Stater Bros. is aligning decisions across the supply chain on a system built to operate under that uncertainty. When inventory decisions learn from each other instead of operating in silos, retailers can reduce waste, improve service levels and deliver the freshness customers expect.”
The unified system aims to strengthen service to stores while supporting fresher products, more efficient inventory flow and continued operational excellence.
Shifting buyer focus
The automation changes how Stater Bros. buyers spend its time. By reducing manual calculations and data mining across multiple tools, the platform allows buyers to focus on warehouse floor activities – observing product condition, validating expectations and building stronger relationships with suppliers and warehouse teams.
“Having spent my career in fresh produce, in both retail and sales and merchandising, I know firsthand the hours consumed by synthesizing data and relying on guesswork for critical fresh decisions,” said Jacob Cadwallader, director of produce at Stater Bros. Markets.
“Afresh’s interconnected system – coordinating decisions from the store to the DC – is the breakthrough we’ve needed to improve accuracy and efficiency. Automating forecasting allows our buying teams to stay laser-focused on supporting our stores, sharpen long-term purchasing decisions and strengthen our commitment to delivering the quality our customers expect from us.”
The shift enables procurement teams to improve fill rates, ensure better in-stock conditions in stores and deliver a more consistent customer shopping experience. Stater Bros. did not provide a timeline for the fresh department and DC Forecast rollouts.
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