Inventory planning reducing shrinkage for a meal kit delivery firm
- Location
- California, USA
- Year
- 2020
- Engagement
- Profitability Improvement: SIOP
Food delivery company that supplied perishable meal kits to 2000+ grocery locations. National grocery chain imposed strict SLAs (Service Level Agreements) despite demand variability and fast expiry. Client needed an inventory planning model to minimize expired product and meet SLAs.
Our team analyzed and refined the inventory and demand planning models to determine quantities by SKU, store, and day. We assessed key variables in a data-constrained environment to identify alternative indicators of demand. We ensured usability of tools and processes to facilitate a sustainable planning function.
Measurable impact
5.2M
Model could analyze up to 5.2M lines of data (daily sales by SKU and locations) to estimate demand, sales and expiry
Food and Beverage
Measurable impact
–30%
Estimated 30% reduction in shrinkage on baseline $35M
Food and Beverage
Case snapshot
Compatible with Python to integrate into more robust S&OP process, and to assess SKU rationalization opportunities
Food and Beverage