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Blue Yonder > Case Studies > Supermercados Peruanos Achieves Accurate, Low-Touch Daily Forecasting
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Supermercados Peruanos Achieves Accurate, Low-Touch Daily Forecasting

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
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.
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 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
  • Improved forecast accuracy from 65-70% to 90-95%.
  • The solution considers complex variables like weather patterns and specific features of the business, such as store closures on Sundays.
  • The solution has led to a cultural change within the company, with employees realizing they could generate much more value if they focused on strategy and not manual analysis.
Quantitative Benefit
  • Improved forecast accuracy from 65-70% to 90-95%.
  • The solution has led to a cultural change within the company, with employees realizing they could generate much more value if they focused on strategy and not manual analysis.

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