Host Mike Graen sits down with Tyler Davis from Woodman's and Mark Shake from Badger Technologies to the implementation of Badger's retail solutions, including AI and machine learning for security and disinfection applications.
Woodman's, a 240,000 square feet grocery store chain, uses Badger's robots to verify pricing accuracy daily, reducing the need for manual checks and improving customer experience. The robots also assist in identifying out-of-stock items and optimizing product placement.
Woodmans' 20 stores, primarily in the Midwest, benefit from these automations, enhancing operational efficiency and customer satisfaction.
The vision for badger is to be a retail
William Santiago:solutions company. We've been working very hard on our
William Santiago:analytics platform with our artificial intelligence, AI and
William Santiago:our machine learning. So we're very proud of that. And we have
William Santiago:new applications for security. We have new applications for
William Santiago:disinfectant using the robots. Now, you know, with covid and
William Santiago:post covid, we know how important that is for the the
William Santiago:industry and for the communities. Woodmans is a 18
William Santiago:location Midwestern store, but what's unique about Woodmans is
William Santiago:they're about 240,000 square feet of selling. So for them, it
William Santiago:was a lot about product location and tag location, and they
William Santiago:initially came to us to see if the robot can aid them in
William Santiago:identifying and making sure the right price tags are in the
William Santiago:right zones of the store.
Tyler Davis:Pricing compliance is a huge deal. That's the
Tyler Davis:customer side of our business. We want you to see the price on
Tyler Davis:the shelf and the price ring correctly at the register. Prior
Tyler Davis:to having a robot in the store, the pricing coordinator would
Tyler Davis:have to leave their department for a week every month to go out
Tyler Davis:to the aisles and scan item by item, just to price, verify the
Tyler Davis:robot's now doing what we were doing every month for a week
Tyler Davis:every single day. So
William Santiago:grocers because they have to find more
William Santiago:creative ways to save and they're finding that the robot
William Santiago:is allowing them to cut costs in the right place, but more
William Santiago:importantly, allow their associates to spend more
William Santiago:interaction with the customers, which is improving the in store
William Santiago:experience. Woodmans also uses us for identifying any items
William Santiago:that are out of stock, Woodman's is one of the first clients to
William Santiago:use it to upgrade their mobile app that their consumers use to
William Santiago:shop with.
Tyler Davis:Customer can now be in our store, look up an item,
Tyler Davis:find its location within the grocery aisles. There's 24
Tyler Davis:aisles. There's about 30,000 products on just the grocery
Tyler Davis:department shelves alone.
William Santiago:Another unique thing that Woodmans uses our
William Santiago:product location for is that the robot will send the product
William Santiago:location to the distribution center, so when they're
William Santiago:replenishing now, Woodmans pre pallets sit to go exactly where
William Santiago:in the aisle, where it should be.
Tyler Davis:Now we have this product location in a nice list.
Tyler Davis:We provided it to our distribution warehouses who are
Tyler Davis:starting to pick orders within our aisles. So now we're not
Tyler Davis:reducing some of this breakdown time of the incoming product
William Santiago:through our analytic and AI platform, the
William Santiago:robot, can tell the stores by category, what items are more
William Santiago:frequently out of stock. So it's really giving them a lot of on
William Santiago:shelf data that they normally would have people looking for
William Santiago:the small, independent grocery retailers typically don't have
William Santiago:the IT infrastructure to do a lot of system things that the
William Santiago:larger tier one grocers might be able to do. This had a great
William Santiago:time in collaboration and working on new projects together
William Santiago:and testing new ideas.
Tyler Davis:Sky's the limit when it comes to the robot
Tyler Davis:project right now, if we can develop it. We're going to
Tyler Davis:develop it just to see if there's another available piece
Tyler Davis:of information that we can compare to enhance another
Tyler Davis:report, create another report, enhance another job down the
Tyler Davis:line. We're willing and open to take any possibility with the
Tyler Davis:robot at this point.
Mike Graen:Well, good morning, good afternoon and good evening.
Mike Graen:Wherever you happen to be, my name is Mike Graen, and we're
Mike Graen:back with another conversation with retail and the University
Mike Graen:of Arkansas Supply Chain organization talking about on
Mike Graen:shelf availability. And you saw a video just a few minutes ago,
Mike Graen:a little bit of a teaser. We actually have one of the guys
Mike Graen:who was in that video, Tyler Davis, who will be introducing
Mike Graen:here in a second, but that was a few years ago, and now he's,
Mike Graen:he's, he's a couple years older and a couple of years wiser.
Mike Graen:He's got some interesting things that he wants to tell us about
Mike Graen:Woodmans, as well as the use of technology like badger to drive
Mike Graen:alerting and on shelf availability. So we've got Tyler
Mike Graen:here. We've also got Mark Shake. Mark Shake is with the Badger
Mike Graen:Corporation. Mark's been doing this for a long, long time, and
Mike Graen:is really is an expert in the solution at retail that
Mike Graen:identifies what I'm going to call things that are out of the
Mike Graen:normal, normal so spills in the floor or out of stocks or
Mike Graen:pricing, etc, some of the stuff that you saw in that video, you
Mike Graen:saw Tyler and me talking about. So before I before I get too
Mike Graen:far, let me start with Tyler once you just unmute yourself
Mike Graen:and introduce yourself to the to the audience. For us,
Tyler Davis:Tyler Davis, I work for when. Food Markets. I am an
Tyler Davis:IT pricing clerk here, and I support all of our pricing
Tyler Davis:departments at the office level and at the store level. I am in
Tyler Davis:charge of the robots and all the fun that we get to do with them.
Tyler Davis:I also support some of our receiving and just our general
Tyler Davis:pricing systems here at Woodman's.
Mike Graen:Awesome. How long have you been with Woodman's
Mike Graen:Tyler?
Tyler Davis:It was 18 years this year.
Mike Graen:18 years. Did you start off in the store? Did you
Mike Graen:always start in the home office?
Tyler Davis:I started at a store 18 years ago. I then
Tyler Davis:transferred and opened two stores before I came to the
Tyler Davis:office. I've been at the office for eight years now, gotcha,
Mike Graen:gotcha, put you on the spot a little bit. How has
Mike Graen:the experience working in a store? Does that help, rather
Mike Graen:than just starting in a home office, I would think it would
Mike Graen:be hugely helpful, because you get to live the life, and then
Mike Graen:you can come and build solutions for the folks of the work that
Mike Graen:you used to do. Does that is that true?
Tyler Davis:Absolutely, at the office, I tend to be a voice of
Tyler Davis:something designed within the office on paper doesn't always
Tyler Davis:play out in a real application, so I can kind of be like, well,
Tyler Davis:this point and this point might need to be finessed a little bit
Tyler Davis:more before we put into live action at the store. I was able
Tyler Davis:to bring a lot of just pain points from the store here, and
Tyler Davis:we've been able to focus on and work on them. And as development
Tyler Davis:of the robot has gone, we've I've been able to really take my
Tyler Davis:experience at the store level and focus on what the robot can
Tyler Davis:do to truly impact day to day life at the store.
Mike Graen:That's awesome. That's awesome. The CEO of
Mike Graen:Walmart, a guy named Doug McMillan, he used to say to me
Mike Graen:all the time, because I both worked in a store at Walmart and
Mike Graen:then worked in the corporate office. He goes, Mike, we don't
Mike Graen:have cash registers in the home office. We're here to support
Mike Graen:the stores. Let's just be really clear on what we're focusing
Mike Graen:Yeah, it was a pretty good line. It was very memorable. Mark
Mike Graen:Shake. Tell us about your tell us about your career path. I
Mike Graen:know you didn't start with Badger. You've been around for a
Mike Graen:while in the technology, retail, technology space. Tell us a
Mike Graen:little bit about Mark Shake, yeah. So
Mark Shake:thanks, Mike. Thank you, Tyler, for participating.
Mark Shake:So yeah, been with Badger. Vice currently, Vice President
Mark Shake:Business Development with Badger. Work a lot with our
Mark Shake:partner, partners in the market like Whitman's. My background
Mark Shake:has really evolved in technology. Really grew up in
Mark Shake:the in the technology and telecommunications industry,
Mark Shake:really at the enterprise level. And about 70 years ago, had the
Mark Shake:opportunity to was introduced to badger and they were looking for
Mark Shake:a business person, someone other than an engineer. So I had the
Mark Shake:opportunity to come on board and really get my feet wet and learn
Mark Shake:the business, both robotics and, most importantly, the retail
Mark Shake:space. So I've enjoyed the ride. I've spent more time in a
Mark Shake:grocery store than I ever imagined so
Mike Graen:well, here we're going to ask you exactly every
Mike Graen:nut and bolt we talked to the wrong guy. You're the you're the
Mike Graen:you're the practical guy. You're you're less about how it works
Mike Graen:internally. You're more about us for the customers, which is
Mike Graen:really what we're probably interested more in this
Mike Graen:conversation as well, right? So Tyler, I'm gonna kick it back to
Mike Graen:you. So tell us about Woodmans. If I if I've never heard of
Mike Graen:Woodmans before, tell us a little bit about Woodmans, the
Mike Graen:number of stores you got, what your stores look like, who your
Mike Graen:target customer? Anything you want to tell us about Woodmans,
Mike Graen:just give us a little bit of view. If people aren't in your
Mike Graen:area, the Chicago kind of Wisconsin area, if they're on
Mike Graen:the West Coast, they probably never heard of you before. So
Mike Graen:give us a little bit of background on who would this
Tyler Davis:woodmans is. Was founded in 1919, and a little
Tyler Davis:produce stand in Janesville. We are now on our fourth generation
Tyler Davis:of Woodman as Clint has taken over, and Phil is still around.
Tyler Davis:You know, he's out in the stores all the time, but Clinton's kind
Tyler Davis:of running the operations from the office now. And yeah, we've
Tyler Davis:been around. We've got 20 stores opening. Well, we're opening our
Tyler Davis:20th next year, Racine, Wisconsin. And how big are?
Mike Graen:How big are these stores? And are they primarily
Mike Graen:grocery, or do they have apparel and other things as well? Tell
Mike Graen:us a little bit about them.
Tyler Davis:They are about 230,000 square feet. They're
Tyler Davis:quite large stores, primarily three. There is haba, HPC,
Tyler Davis:frozen, dairy, meat, very service orientated, low cost,
Tyler Davis:low price, just trying to keep things down and keep the volume
Tyler Davis:up. And, yeah,
Mike Graen:wow, if I compare that to a the one of the biggest
Mike Graen:WalMart super centers, I know it's 220,000 square foot, but
Mike Graen:that's growth, grocery, health and beauty. Apparel,
Mike Graen:electronics, automotive service, all like sporting goods, etc.
Mike Graen:230,004 foot supercenter, or, I'm sorry, grocery store. Yep,
Mike Graen:any grocery item ever you should be able to buy it in the
Mike Graen:woodmans, right? That you're saying, hopefully,
Tyler Davis:hopefully, yeah, variety is key. We have about
Tyler Davis:100,000 active UPCS on the floor at any given time in most of our
Tyler Davis:stores, we have a couple smaller locations, little older
Tyler Davis:locations, but you know, generally, about 100,000 a
Tyler Davis:little over 50,000 of those are picked up by the robots daily.
Mike Graen:Nice, awesome, awesome. And tell us, tell us,
Mike Graen:maybe a little bit about your customer base. Who is the is it
Mike Graen:people, because they're, they're coming from a location which is
Mike Graen:close to you? Is there a loyalty program? How to, how do you
Mike Graen:maintain your constant growth with your customers?
Tyler Davis:We focus on offering the lowest prices and
Tyler Davis:the most variety. So we generally, you know, we prefer
Tyler Davis:to cater to everybody, but we, um, generally, cater to
Tyler Davis:families. You know, come shop at Woodmans and stock up while you
Tyler Davis:can. We're located off of major interstates. Generally, we're
Tyler Davis:spread out a little bit. You're not going to have multiple
Tyler Davis:woodmans locations and cities other than Madison, which is
Tyler Davis:right by our corporate office.
Mike Graen:Gotcha. Gotcha. All right, cool. So Mark, I'm gonna
Mike Graen:kick it over to you. You guys are in Lexington, Kentucky. I
Mike Graen:don't think there's a Woodmans in Lexington, Kentucky. Last
Mike Graen:time I checked, so how did you and Woodmans decide? Hey, we got
Mike Graen:some we got some opportunities to do some business together.
Mike Graen:Tell us a little bit about Badger. And you know how the
Mike Graen:initial discussions with Woodmans transpired?
Mark Shake:Yeah, absolutely. So just a little bit about badger,
Mark Shake:our company. So badger, we're right at a seven year old
Mark Shake:company, somewhat of a startup, but we are a product division of
Mark Shake:Jable, which is a contract manufacturing company at New
Mark Shake:York publicly traded company. New York Stock Exchange,
Mark Shake:publicly traded, do about 32 billion in revenue. So about six
Mark Shake:and a half years ago, they acquired Badger as one of their
Mark Shake:first product offerings to really take to market themselves
Mark Shake:as a result. You know, within Badger there, our primary focus
Mark Shake:is collecting actionable data within the retail space that
Mark Shake:leverages that data, both for the retailer to improve on their
Mark Shake:operations that could be in store, conditions around
Mark Shake:inventory and what's happening on the shelf, as well as also
Mark Shake:what's happening in the store as it relates to safety and
Mark Shake:cleanliness. So the two prime you know, multiple use cases
Mark Shake:there with each different solution, but we're, we leverage
Mark Shake:our retail Solution Suite, if you will, with leveraging that
Mark Shake:collection of the data with fully autonomous robots
Mark Shake:operating in store. So it's been an exciting ride, very
Mark Shake:disruptive. And something that we're extremely excited about is
Mark Shake:this industry continues to unfold in the different you
Mark Shake:know, retailers as well as suppliers who were servicing,
Mark Shake:you know, those specific that those industries you know, are
Mark Shake:ramping up and becoming more familiar with the solutions that
Mark Shake:are out there. With regards to Woodmans, I was very fortunate
Mark Shake:had the opportunity to take the first robot up to Woodmans. When
Mark Shake:we deploy a robot into Woodmans, or into any store we like, we
Mark Shake:walk the store and collect mapping data. That's what the
Mark Shake:robot utilizes to for navigation purposes, but had the
Mark Shake:opportunity to go in and meet Tyler for the first time. I
Mark Shake:could tell you, Tyler probably was not necessarily a fan of
Mark Shake:robotics. He was more skeptical than anything. I welcome the
Mark Shake:challenge, but he anyway, he was just fun to kind of engage with
Mark Shake:early on, only because he was skeptical, and it kind of set a
Mark Shake:challenge for us. So, you know, we went in there and really had
Mark Shake:the robot set up within, you know, a couple of hours, we
Mark Shake:began scanning some shelves and then showing the data associated
Mark Shake:with that. So very quickly, Tyler had a lot of questions,
Mark Shake:and quickly over, over the course of the next few weeks, I
Mark Shake:think we brought them over to the other side.
Mike Graen:Nice, nice. Well, here's an easy segue transition.
Mike Graen:Tyler, do you remember the story in the first meeting that way?
Mike Graen:Or did you see it a little bit differently than that? Tell us
Mike Graen:about because here's, let's say you came from the stores. You're
Mike Graen:all about delivering value, and every day low prices. Why do I
Mike Graen:want to buy this big piece of equipment? It's just going to
Mike Graen:cost more money, and then we have to add cost to the system.
Mike Graen:But somehow you got you went from a skeptic to this is pretty
Mike Graen:cool. We need to do this. Tell your side of the story. We'll
Mike Graen:see how well it matches with what Mark said.
Tyler Davis:No Mark was absolutely right. Our corporate
Tyler Davis:office shares a parking lot with one of our stores, and that was
Tyler Davis:a store we were piloting the robot in. They didn't really
Tyler Davis:share that that was even happening. And then that day,
Tyler Davis:somebody had said, you know, there's a robot over at the
Tyler Davis:store. And I was like, for what marketing gimmick Are we playing
Tyler Davis:today? And they're like, no, no, no. It's so it's to do things
Tyler Davis:and read the shelves and stuff. And then I really thought we
Tyler Davis:were joking around, so coworker and I ran over across the store
Tyler Davis:to see it, and I kind of was like, nope, I've got questions
Tyler Davis:right out the gate. We've got to discuss some things. This is
Tyler Davis:nuts, and it's never going to work here. So I picked the
Tyler Davis:brains and asked them all sorts of questions. You know, what
Tyler Davis:happens when the internet goes out? Does this thing just start
Tyler Davis:running around, knocking things over, taking people out? Like,
Tyler Davis:how much fun do we need to get a lasso involved? Like, so I was
Tyler Davis:just very skeptical. And then Clint, our CEO, he had known I
Tyler Davis:was very skeptical about it, and he said, you know, you don't
Tyler Davis:seem to think this is really something that's going to apply
Tyler Davis:to us. So why don't you run the project? If they can prove you
Tyler Davis:wrong, then maybe we have something here. So that's how I
Tyler Davis:got involved with the robots.
Mike Graen:So the moral of the story, don't be skeptical, or
Mike Graen:you'll get assigned the project Exactly. If you can convince
Mike Graen:Tyler this is a good idea, you made the sale so. Well, let's be
Mike Graen:honest here. So, so you, you said Mark six to seven years
Mike Graen:ago, 10 years whatever. 10 years ago, we didn't have robots in
Mike Graen:stores. We had people, right? We had people. So Tyler walked us
Mike Graen:through this transition. So Tyler's going, Hey, I used to do
Mike Graen:this work in the store. Now you got a robot doing it. What
Mike Graen:exactly is the robot automating that, frankly, is probably
Mike Graen:better to be done by a robot than a person. Let's start out
Mike Graen:with Tyler. You started out as a skeptic. What are the things
Mike Graen:that you learned about what it could do and how it could help
Mike Graen:the store associates that you now became a Wow we got to think
Mike Graen:about this.
Tyler Davis:Well, first off, the accuracy. I didn't really
Tyler Davis:think that it was going to be an accurate product. I didn't think
Tyler Davis:that we were going to see it, be able to read the shelves and
Tyler Davis:then be able to rely on that data as much as we are. So that
Tyler Davis:was the first big thing. It's just the fact that it it really
Tyler Davis:did what they said it was going to do, and it wasn't one of
Tyler Davis:those fun things that works for a while. And then, yeah, push
Tyler Davis:that off to the side right now. Um, so that was a big thing for
Tyler Davis:me. And price verifying, when I could see that it was truly
Tyler Davis:pointing out price errors on the shelf was a really big push for
Tyler Davis:me, because I was a pricing coordinator at one of our
Tyler Davis:stores, and I had to stop what I was doing and go price verify
Tyler Davis:about once a month. And it's boring. It's so boring our
Tyler Davis:shelves are extremely long, and that aisle is just overwhelming
Tyler Davis:to start with, and scanning every product, you stop paying
Tyler Davis:attention. You skip sections. The robot was hitting all of it
Tyler Davis:every day and just keeping up to date.
Mike Graen:So we'll make sure I understand, for the 100,000
Mike Graen:items you've got, your verifiers would literally take a device
Mike Graen:scan the shelf. Label say the point of sale says it's $4.20
Mike Graen:the label says $4.20 that one matches go to the second. That's
Mike Graen:what we're talking about, literally scanning every single
Mike Graen:shelf item.
Tyler Davis:Yes, well, that sounds painful. It really was.
Mike Graen:Wow, wow,
Tyler Davis:collected and nicely put in a little basket
Tyler Davis:too here you go. This is what you need to take care of today.
Mike Graen:That's awesome. People may not understand why is
Mike Graen:verifying prices important? Okay, so they're off a little
Mike Graen:bit. What's the what's the I mean, I'm obviously being
Mike Graen:cynical, because I know what the answer is going to be, but they
Mike Graen:can be for a retailer perspective, why is pricing
Mike Graen:accuracy at the shelf? Very, very important?
Tyler Davis:Well, the customer experience first and foremost.
Tyler Davis:Yeah, but there are also state auditors that come in, fines can
Tyler Davis:be assessed if too many pricing errors are found, but I mean
Tyler Davis:primarily in first focus always the customer. So just making
Tyler Davis:sure that the accurate price is on their receipt, that they
Tyler Davis:picked it up off the shelf is number one.
Mike Graen:So picking up an item off the shelf that says $4
Mike Graen:and when I get the register, it's $4.80 you could dissatisfy
Mike Graen:customer. Oh, they're trying their little bait and switch
Mike Graen:here. I picked it up here, but they're charging me more money
Mike Graen:they thought I didn't see that, huh? So, all right, Mark, over
Mike Graen:to you. So what else does this thing do? So walk us through
Mike Graen:kind of the the beginning, because, because the first thing
Mike Graen:I don't know that we've even said it, walk us what a run
Mike Graen:would look like. And we've got this animated video we'll show
Mike Graen:behind the scenes, but we're talking about a robot that
Mike Graen:absolutely plugs into the wall by itself, charges itself and at
Mike Graen:specified times, undocks and goes, does tasks in store. Walk
Mike Graen:us through what that looks like.
Mark Shake:Yeah, absolutely. So yeah, as you stated, The robot's
Mark Shake:fully autonomous. So if you can imagine just a wireless device
Mark Shake:within the retail space. So whether it's a wireless funnel
Mark Shake:or, you know, whatever, it's just a simply a wireless device,
Mark Shake:we just require an area, probably three by three, three
Mark Shake:foot by three foot, to park the robot in, typically on the main
Mark Shake:sales floor, and it's stays it plugs in the charger, plugs into
Mark Shake:a standard, standard outlet, no infrastructure requirements
Mark Shake:whatsoever on the retailer's side. So we deploy the robot,
Mark Shake:and really within the robot, we have two primary solutions. The
Mark Shake:one solution running at Woodman's is references insight,
Mark Shake:that's giving visibility, collecting on shelf data, around
Mark Shake:out of stocks, incorrect products and mispriced items.
Mark Shake:And then the second solution is really that's called our
Mark Shake:inspect, and that's where the robot can operate throughout the
Mark Shake:day when it's not scanning the shelf to physically inspect the
Mark Shake:floor. So from a retailer's perspective, and providing duty
Mark Shake:of care for a clean, safe environment. The robot now
Mark Shake:provides a highly compliant store walk program that gives
Mark Shake:before and after images that risk management teams can
Mark Shake:reference in the event there's an incident in the store. So
Mark Shake:really, connection wise, the robot operating the store is
Mark Shake:very simplistic, not nothing required, at least from an
Mark Shake:internet connection other than an internet connection at the
Mark Shake:store level. And then, depending on the retailer, we stand up,
Mark Shake:you know, our solutions against their in store operations. And,
Mark Shake:you know, make just for purposes of improving those operational
Mark Shake:efficiencies around whether it's pricing and auditing or
Mark Shake:replenishment or even post analytics on the data. Why are
Mark Shake:these issues occurring in my store and looking more down up
Mark Shake:the chain, as it relates to supply chain? So again, numerous
Mark Shake:use cases across the board, depending on how the retailer is
Mark Shake:leveraging it. And to Tyler's point, right? I mean, retailers
Mark Shake:are faced with a lot of demands. They have a lot of product, a
Mark Shake:lot of suppliers, a lot of people in and out of their
Mark Shake:store. They have customers. They have people they have to manage
Mark Shake:by leveraging these type of, you know, 10 years ago, you would
Mark Shake:have looked at it as very disruptive, almost now, you you
Mark Shake:know, I would envision retailers looking at is this would be a
Mark Shake:must have, because you're standing up programs that are
Mark Shake:that are offering greater compliance, as well as conducted
Mark Shake:more often, And you're collecting more usable data out
Mark Shake:of your store on a more timely basis, so you can make faster
Mark Shake:decisions that will help, hopefully be a positive impact
Mark Shake:to the bottom line.