CV-19 Insights

Case Study: Reducing Waste to Improve Profitability



Waste Data Matters!

Over the past decade we’ve been focusing on how to improve the growth of margin in the retail industry. However, one minor but important area hasn’t been prioritized for years – waste and shrink data. As a result, consumer packaged goods (CPG) companies are losing nearly $160 billion annually!

Utilizing RSi’s Solutions To Quickly Isolate Visibility On Waste And Shrink Data

A top consumer packaged goods (CPG) company who holds the No. 1 brand share in 80 countries across the globe contacted RSi for help developing a collaborative plan across its cross-functional teams to address waste and shrink problems.

After an overview on the waste and shrink data, RSi helped to launch an overall analysis using cleansed Store – Product – Day level data to provide the specific solution for this company.

This solution focused on:

  • Providing an overall plan to address waste mitigation during product transition periods.
  • Defining a clear list of the most impacted key items based on relatively high waste $ amount and waste % of sales.

Waste Mitigation Plan To Help With A Smooth Transition

The first step was to create a project plan to manage the old code run-down process proactively. Together with the CPG, a timeline was created for each step of the process. Then, they adjusted inventory ordering based on the dynamic inventory in the stores. By doing this, the CPG was able to reduce the single category waste by 8% in a single year.

Identify and Resolve Problem Areas with Speed

Upon agreeing on a solution, the CPG immediately planned a DC visit.  At that visit, the CPG found the root causes and adjusted their case pack size to an ideal level. Once actioned, they were able to reduce waste by 10% year over year!

RSi’s waste and shrink data solutions were able to help this CPG company make a significant impact to their bottom line quickly, while also providing them with the tools they needed to make a lasting influence on their business.

If you would like to learn more about how this data offering can benefit your business, please reach out to us at [email protected].

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