In recent years, ScottsMiracle-Gro (SMG) has undergone a significant transformation, integrating artificial intelligence (AI) into its operations. Historically, employees measured compost and wood pile volumes with simple measuring sticks. Now, drones equipped with advanced vision systems perform these calculations in real time, reflecting a shift towards more efficient methods and the application of complex technology in traditional agricultural sectors.
The leadership at SMG has shifted to embrace AI, with President Nate Baxter noting the company’s surprising success in this domain. Without prior expectation, SMG has managed to secure over half of its goal of $150 million in supply chain savings and significantly improved customer service response times.
Baxter, who joined SMG after a two-decade career in semiconductor manufacturing, was initially hesitant about the shift. However, he recognized similarities between his previous experiences and SMG’s operational needs, such as precision and quality control. He viewed the company’s extensive horticultural knowledge as a resource that had not been fully utilized.
Upon his arrival, Baxter restructured the organization to eliminate silos, creating a more integrated approach across various departments. He emphasized that business profitability is linked to technology implementation, holding leaders accountable for both financial and operational outcomes.
The company faced challenges in converting legacy data into AI-compatible formats, a process that involved meticulous knowledge management. They selected Databricks as a data platform, which facilitated the integration of internal knowledge with modern AI capabilities. Early trials with general-purpose AI highlighted the need for specialized models to avoid costly mistakes with product recommendations.
SMG’s transformation also resulted in the implementation of demand forecasting models, leveraging multiple factors to guide resource allocation. The use of AI in customer service has led to improved response times.
ScottsMiracle-Gro’s experience highlights key lessons for traditional industries: combining proprietary knowledge with AI can create a competitive advantage. As the company continues to evolve, it seeks to leverage its unique horticultural expertise to drive future innovations and business growth.
Source: https://venturebeat.com/ai/when-dirt-meets-data-scottsmiracle-gro