200+ Store Grocery Chain Reports Average 35.6% Shrink Reduction

A 200+ store regional grocery chain in the USA has piloted and is rolling-out ADC's P-Cubed Perishable Production Planning software system and has seen a consequent average 35.6% reduction in shrink in its Deli and Bakery departments.

The Perishable Production Planning module generates demand-based production plans from store-specific sales history, which results in having the optimum amount and variety of fresh foods available at the right time for customers.

"The first success story we saw with the system came from an item that had never been on promotion before" stated the retailer's CIO. "ADC's software forecast that we needed 31 of the item available for sale. While the store was hesitant to produce that quantity, they indeed sold 30. However, that was just the beginning. Once we were producing the optimum quantities of fresh products, we saw a drastic average reduction in our perishable shrink of 35.6% in just two of our fresh departments."

ADC was able to track and report the reduction in shrink by collecting sales movement data at the item-transaction level starting for over a year prior to the P-Cubed implementation. This allowed a direct comparison of same store, same item year on year performance over a 10 week period, contrasting items on the production plan against candidate items yet to be put on production planning. Unit shrink reduced by 25.5% on production plan items but increased by 10.1% on non-production plan items.

"We are very happy to be able to share this client's P-Cubed results," said Steve Loveridge, ADC's CEO. Prospective clients want P-Cubed quantified results, which is why we like to collect fresh item sales history prior to the software being rolled out. Additionally, the fresh-focused forecasting algorithms in P-Cubed perform better with a significant amount of sales history. ADC looks forward to sharing more stories from this client and others who are seeing similar results from the P-Cubed software system."

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