What: JC Penney is integrating artificial intelligence (AI) and machine learning into its supply chain operations as part of a broader strategy to modernize its legacy systems and improve productivity.

Why it is important: The adoption of advanced technology like AI and machine learning is crucial for JC Penney to remain competitive in the rapidly evolving retail landscape, enhancing both customer and employee experiences while improving operational efficiency.

As part of its USD 1 billion investment plan through fiscal year 2025, JC Penney is heavily focusing on modernizing its supply chain with AI and machine learning technology. Under the leadership of Chief Information Officer Sharmeelee Bala, the retailer has begun implementing new tools for pricing, assortment planning, and logistics optimization, including the use of automated warehouse management systems like the Joey Pouch sorting system at its Reno distribution centre. These upgrades aim to reduce manual processes, improve delivery times, and consolidate data across the business, ensuring that the company is prepared for future challenges. Bala emphasizes the importance of balancing modernization with efficiency, prioritizing AI and machine learning to create a more effective and competitive supply chain.

JC Penney leverages AI and machine learning to modernize supply chain