Supermercados Peruanos Achieves Accurate, Low-Touch Daily Forecasting
Company Size
1,000+
Region
- America
Country
- Peru
Product
- Blue Yonder’s replenishment solutions
- Luminate Demand Edge
Tech Stack
- Cloud-native application
- Artificial Intelligence
- Machine Learning
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Retail
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Demand Planning & Forecasting
- Predictive Replenishment
Services
- Cloud Planning, Design & Implementation Services
- Data Science Services
About The Customer
Founded in 1993, Supermercados Peruanos (Peruvian Supermarkets) is the largest supermarket chain in Peru, with 600 stores. The company was a long-time user of Blue Yonder’s replenishment solutions covering its consumer packaged goods (CPG) and center-of-store categories. However, they were struggling with accurately forecasting demand for fresh and ultra-fresh foods such as produce and meat. The company needed a solution that could manage uncertainty and go beyond human cognition, as they have millions of dollars invested at their distribution centers that needed to be protected with precision.
The Challenge
Supermercados Peruanos, the largest supermarket chain in Peru, was struggling to accurately forecast demand for fresh and ultra-fresh foods such as produce and meat. The retailer was using a manual and decentralized process, relying on Excel spreadsheets and manual processes to forecast ultra-fresh products, based on history. This approach was revealed to be problematic during the pandemic, as it was unable to manage uncertainty and go beyond human cognition. The company needed an advanced, automated tool that could manage uncertainty and go beyond human cognition. They have millions of dollars invested at their distribution centers and needed to protect those investments with precision, not with averages.
The Solution
Supermercados Peruanos partnered with Blue Yonder to implement Luminate Demand Edge, a cloud-native application that leverages artificial intelligence (AI) to consider real-time external variables and arrive at an extremely accurate forecast. Luminate Demand Edge considers some really complex variables like weather patterns, but also specific features of the business. Since the pandemic, some stores are closed on Sundays. Luminate Demand Edge managed to understand that and anticipate the supply needed to cover sales on Saturday with greater accuracy. The solution is cloud-native and runs on Microsoft Azure, allowing Supermercados Peruanos to automatically respond to demand fluctuations, quickly and accurately. It enables the retailer to minimize waste, while also maximizing service and profits, in the face of extreme volatility.
Operational Impact
Quantitative Benefit
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