Founded in 1993, Supermercados Peruanos (Peruvian Supermarkets) is the largest supermarket chain in Peru, with 600 stores.
Success Story
Supermercados Peruanos
Demand Planning
Supermercados Peruanos
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“Traditionally our planners relied on Excel spreadsheets and manual processes to forecast ultra-fresh products, based on history. But the pandemic revealed the problems with that approach. We needed an advanced, automated tool that could manage uncertainty and go beyond human cognition. We have millions of dollars invested at our distribution centers. We must protect those investments with precision, not with averages. Many times we forget that the forecast drives the entire supply chain, at least in retail.”
Considering complex, retailer-specific demand variables
“Blue Yonder's Demand Planning considers some really complex variables like weather patterns, but also specific features of our business. Since the pandemic, some stores are closed on Sundays. Blue Yonder's Demand Planning managed to understand that and anticipate the supply needed to cover sales on Saturday with greater accuracy.”
Achieving cultural and business benefits
“We’ve realized many business benefits, but also a cultural change. From a purchasing calendar to the shelf life of a product, everything was normally found in a computer, in a person’s knowledge, in a printout, but it was not in any system. I’d say that was the biggest challenge. People gradually realized that they could generate much more value if they focused on strategy and not manual analysis.”
Solution benefits
Blue Yonder’s cloud-native Demand Planning on Microsoft Azure allows 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. Blue Yonder's Demand Planning enhances forecast accuracy by combining internal data with external, complex and interrelated variables like weather patterns, price and promos, holidays, product characteristics and events to create a holistic, risk-aware forecast. Machine-learning capabilities allow Blue Yonder's Demand Planning to ingest and analyze massive volumes of data without overwhelming users. Supermercados Peruanos can assess probabilistic impacts and risks as it weighs different forecasting outcomes.
