‘Sweet spot’: the optimal balance between availability and freshness with minimal food waste
Freshness, waste and product availability are critical drivers for supermarkets, especially for fresh products such as meat, fruits and vegetables. Often, high shelf availability has a negative impact on the freshness of products and can result in higher waste. With lower availability, higher freshness and reduced waste can be realized, but higher lost sales can be the consequence. The question is how to finetune the replenishment parameters to have the optimum balance between availability, the avoidance of food waste and freshness.
“For Jumbo, the sweet spot model is “the” enabler to make the best fact-based decisions for our fresh product assortment that will contribute to our bottom-line result and customer satisfaction. EyeOn was capable to co-create a fit for purpose model which combines simulation results from the digital twin of a Jumbo supermarket and financial parameters in order to come to reach the sweet spot. Next to that, and even so important for Jumbo, is that the model helps us to reduce waste in the total value chain and improve freshness on shelf, as we share our insights as well with our key suppliers and collaborate with them to make the best aligned end to end decisions.”
Improved responsiveness: better collaboration with fresh suppliers
Fresh products rely on a well-managed supply chain. Imbalances and misalignments between manufacturers and supermarkets can result in poor freshness or low shelf availability. Jumbo wants to be an industry leader in fresh food and continuous improvements in the fresh supply chain is therefore key. Since weather, promotions and holidays & events have a big impact om demand variability of fresh items, responsiveness is required to keep products with high freshness available on the shelf. Together with three strategic fresh suppliers, a project was started in early 2020, just before the first COVID-19 outbreak in the Netherlands. Responsiveness became even more critical during the disruptions caused by the pandemic.
“During a hectic period due to Corona, EyeOn was the driving force of the project. EyeOn guided us with a pragmatic approach, even in an environment of communication digitally, so we could design a joint forecasting process designed for our business needs.”
Jumbo is a family business from Brabant, The Netherlands, with a rich entrepreneurial history. They operate in the Netherlands and Belgium. Jumbo currently has more than 680 supermarkets. Jumbo wants to make tasty and healthy food easily accessible to everyone. The unique Jumbo formula is used in all stores and online (best service and largest range at the lowest price) and customers can rely on the ‘7 certainties’. By always putting the customer first, Jumbo is one of the most appreciated supermarket chains. The Forecasting & Replenishment team contributes to customer satisfaction by taking care of maximized availability, quality and freshness at optimal costs in a demand driven chain for both bricks and clicks.
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Are you also experiencing more uncertainty and complexity in your end to end chain? Do you need support in designing, implementing and executing excellent (planning) processes as a discriminating factor for success?