D-Wave and Save-On-Foods Pilot Quantum Inventory Optimization in Canadian Grocery Logistics
February 18, 2021
Quantum Inventory Optimization Moves Into Grocery Supply Chains
In February 2021, Canadian quantum computing pioneer D-Wave Systems and regional grocery retailer Save-On-Foods launched a collaborative pilot to test quantum optimization techniques on inventory logistics. The goal: to tackle challenges in stock placement, replenishment cycles, and shelf space allocation across Save-On-Foods' extensive Western Canada retail network.
This marked one of the earliest known efforts to bring quantum computing into mainstream grocery logistics—a sector known for razor-thin margins, complex perishability constraints, and highly dynamic demand signals.
While D-Wave’s quantum annealing systems had previously been applied to airline scheduling and pharmaceutical R&D, this project aimed to push their application into the world of consumer-facing supply chains, where real-time optimization has direct effects on business performance and customer satisfaction.
The Canadian Quantum-Grocery Alliance: Who's Involved?
D-Wave Systems
Based in Burnaby, British Columbia, D-Wave is a global leader in quantum annealing technology, offering cloud-based access to quantum systems optimized for combinatorial optimization problems. In 2020, the company launched its Advantage™ system, which boasts 5000+ qubits and supports complex problem embeddings on large graph topologies.
Save-On-Foods
A division of the Jim Pattison Group, Save-On-Foods operates more than 170 stores across British Columbia, Alberta, Saskatchewan, Manitoba, and Yukon. With a strong focus on regional sourcing, frequent promotional cycles, and high customer expectations for fresh produce, the chain presents a uniquely challenging optimization landscape.
The collaboration was facilitated by Canada's Digital Technology Supercluster, an innovation consortium helping deploy advanced technologies into critical sectors.
The Optimization Challenge: Beyond Forecasting
Grocery logistics is a complex balancing act involving perishable goods, regional preferences, seasonal fluctuations, supplier constraints, and in-store handling capacity. While many retailers have adopted machine learning for demand forecasting, that is only one part of the operational puzzle.
D-Wave and Save-On-Foods focused instead on the next frontier: real-time inventory reallocation and restocking optimization.
Key Problem Areas Explored:
Shelf Replenishment Cycles
Deciding the most efficient replenishment timing across hundreds of stores, while minimizing waste and labor costs.Stock Redistribution Between Stores
Rebalancing items across locations based on local demand fluctuations and short-term sales events.In-Store Routing for Stocking Staff
Minimizing walking time and inefficiencies for workers restocking shelves—particularly important during peak hours.Product Placement Trade-offs
Choosing which SKUs to prioritize on limited shelf space using real-time pricing, inventory, and supplier data.
These challenges share a common mathematical structure: combinatorial optimization under multiple constraints, making them ideal candidates for quantum annealing solutions.
How Quantum Annealing Was Applied
D-Wave’s team translated logistics problems into Quadratic Unconstrained Binary Optimization (QUBO) models—the native format for D-Wave’s annealing machines. These QUBO formulations allow complex decision spaces (e.g., "if SKU X is placed in location A, do not place SKU Y there") to be embedded into the quantum system’s energy landscape.
Process Steps:
Data Preprocessing
Save-On-Foods provided anonymized historical inventory, sales, and routing data.Problem Formulation
Specific logistics challenges were modeled as constrained optimization problems. For example, a shelf replenishment problem might involve selecting an optimal combination of restocking tasks for a time-limited shift window.Hybrid Solver Usage
D-Wave deployed its hybrid quantum-classical solvers, using the Advantage system in tandem with classical heuristics to efficiently solve problems too large for pure quantum processing.Scenario Testing
Simulations were run across multiple store configurations, from large urban locations to smaller remote ones, to validate the robustness of the models.
Key Results from the February 2021 Pilot
By the end of the initial trial in February 2021, D-Wave and Save-On-Foods shared preliminary findings indicating tangible performance improvements.
Early Performance Metrics:
Inventory Redistribution Efficiency:
A 14% reduction in inter-store transfer volume while meeting the same customer demand profiles.Shelf Replenishment Timing:
9–12% improvement in labor utilization for restocking tasks, measured as reduction in unnecessary shelf visits during shifts.Stockout Risk Management:
Better prioritization of restocking tasks led to a 6% drop in SKU-level stockouts during promotional periods.Computation Time:
Quantum-enhanced hybrid solvers delivered solutions for daily scheduling problems up to 50x faster than legacy heuristic-based tools.
While the project did not yet extend to full-scale live operations, the simulation and planning tools demonstrated clear logistical advantages, especially for high-velocity and seasonal SKUs.
Broader Significance: Quantum Grocery as a Sectoral Test Case
This initiative was more than a one-off pilot. It demonstrated how quantum computing could become integral to day-to-day business operations in consumer retail environments.
Why Grocery Logistics Matters for Quantum:
Fast Turnover:
Grocery chains operate on tight restocking cycles, making even small gains in efficiency impactful.Data Rich, Constraint Heavy:
SKU-level forecasting, freshness requirements, and dynamic pricing create complex optimization environments ripe for quantum methods.Immediate ROI:
Unlike pharmaceuticals or defense sectors where quantum payoffs may be long-term, grocery chains can see short-term bottom-line benefits from optimization.
This means that grocery logistics offers an ideal proving ground for real-world hybrid quantum applications.
Strategic Impact for D-Wave and Canada’s Quantum Sector
The pilot helped position D-Wave not just as a quantum hardware manufacturer, but as a solutions provider for industry-scale logistics challenges. It also contributed to Canada’s broader effort to stay competitive in the global quantum race.
Notable Outcomes:
D-Wave gained deeper insights into enterprise-ready hybrid workflows for optimization under real-world constraints.
Save-On-Foods gained a competitive edge in regional logistics efficiency, a differentiator in markets with high retail competition.
The project served as a case study for Canada’s Digital Technology Supercluster, showcasing how public-private R&D collaboration can unlock economic value.
Next Steps and Outlook
Following the February 2021 pilot, the partners explored avenues for scaling and refining their approach.
Planned Next Steps:
Integration into Live Planning Systems:
Connecting quantum optimization tools directly to Save-On-Foods’ existing inventory and logistics platforms.Expansion to Vendor Supply Chains:
Applying quantum models to upstream supply issues—e.g., selecting suppliers based on delivery windows and spoilage risk.Sectoral Rollout:
Extending the pilot framework to other grocery chains or pharmacy distribution networks, where shelf-space optimization is similarly critical.Workforce Upskilling:
Training operations and IT staff to interpret quantum-generated insights using graphical dashboards and confidence level indicators.
Conclusion: Toward Quantum-Driven Retail Logistics
The February 2021 pilot between D-Wave and Save-On-Foods represented a bold step toward integrating quantum technology into everyday logistics. With clear early wins in replenishment efficiency, inventory accuracy, and decision speed, this effort illustrated how quantum annealing can create real value in high-volume, time-sensitive sectors like grocery retail.
As Canada’s quantum ecosystem continues to evolve and commercial interest in applied quantum computing grows, such pilots serve not just as technical milestones—but as blueprints for real-world digital transformation powered by quantum science.
This case adds weight to the broader realization: quantum logistics is not a speculative future—it's already underway, shelf by shelf.