Summerween, anyone? Walmart and Mars use AI to prepare candy and costumes for an early Halloween rush

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Fall has just begun, but for companies in the Halloween candy and costume business, spooky season kicked off this summer.

"That means we have to think beyond a traditional Halloween selling window," Kollepara said. "We need to understand not only how much demand we'll see, but when it will begin, where it will occur, and how the product mix may change."

For manufacturers like Mars and retailers like Walmart, AI helps find the sweet spot. Previously, supply chain planners manually adjusted parameters, and forecasts were trial and error, said Madhav Durbha, the group VP of manufacturing industry strategy at AI platform RELEX Solutions. Now AI automates changes, so planners aren't "constantly fiddling with the algorithms," he said.

Mars has turned to AI to track and plan when its treats are in high demand. AI layers in data showing consumers are buying earlier, as well as Mars' available inventory, production capacity, and customer requirements, Kollepara said.

For instance, Mars' research found that consumers in the Western US want Halloween-themed novelty treats, while those in the South prefer gummy candy, allowing Mars to route its inventory accordingly.

Walmart monitors its distribution networks with AI to ensure products are packed and transported in time for trick-or-treaters. Its AI reviews what's in each trailer and compares it with the current store inventory. The system then flags which trailers to unload right away, and which can wait — a useful tool during the holiday rush.

Retailers must also move inventory from stores' backrooms to shelves and respond to shifts in demand at speed. "Stores have roughly a 10-day window around peak demand to get the season right," Bond said.

As candy and costumes arrive at Walmart's distribution centers, automation technology sorts the goods into pallets based on where the merchandise will go in store aisles, Uppuluri said. That way, store associates can quickly unload goods and stock shelves.