Resource Efficient Innovations Database (REID)

Less waste with new bakery sales prediction tool

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Less waste with new bakery sales prediction tool
A new technology for retail bakers can improve shop sales predictions, thereby reducing wastage and improving ordering.
In Use – This module was launched in June 2011.

Benefits
Product Waste Reduction

Product Categories
Food

Relevant Materials
Not Applicable

Relevant Packaging Formats
Not Applicable

Supply Chain Phase
Retailing

Details

A leading supplier of an ERP system used for production and manufacturing has developed an automated orders module designed to reduce waste and increase profits by improving ordering quality, reducing time spent on daily ordering routines and improving communication between head office and retail outlets.

The module generates suggested orders for a retail baker's following week. The suggested orders are created from an algorithm agreed with each customer. For example, on short shelf-life products, the automated orders software may use an average of the last weeks' actual sales plus a % uplift to suggest what should be ordered for the following week.
By using the data-processing power of modern computing to review very large amounts of data, the automated orders function can now produce suggested future orders in a way that is not practical manually. In tests, these orders have proved better than those produced by shop managers who have limited time and capacity to carry out this process. Better ordering leads to greater sales and less wastage.
Shop managers are still required to review and confirm the suggested orders through the the system’s interface. This allows them to moderate the results for any parochial information they are aware of such as school holidays and local events. The intuitive automated orders function also relieves shop managers from form-filling and time on the telephone to head office, releasing them to lead their staff and serve their customers.
A major advantage is that the new tool helps to correct assumptions among shop managers about consumer trade-offs. An example is quoted in which a customer visits your shop because they want a steak pasty. There are none left, so the customer buys a meat and potato pasty instead. In fact, all the meat and potato pasties sell out as well but it’s difficult to work out that the shop has only sold all of them because it has sold out of the steak pasties. The Automated Orders tool can tell the shop manager that they don't need to increase orders for both pasties, they only need to increase the orders for one.
The automated orders tool is a module for RedBlack’s CyBake Touch system. The technology can run on EPOS tills to provide a link between head office and retail outlets via the Internet.
The content in this entry has been obtained from publicly available information sources only (e.g. press releases, website and trade press articles) and is subject to completion of a validation process with the technology supplier.

Potential Benefits

By improving ordering quantity for short shelf life bakery products this solution has potential to significantly contribute to reduction of waste at the store.

Intellectual Property

The solution is the intellectual property of RedBlack Software.

Consultant View

To take advantage of the benefits of this solution retail bakers will need to already utilise the CyBake core module.

Contacts and Further Information

Martin Coyle
RedBlack Software
King's House
12 King Street
York
YO1 9WP
Tel: 01904 622888
Email: martin.coyle@redblacksoftware.co.uk

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