The company experienced significant food waste due to inaccurate forecasts. The forecasting issue is complex as each store assorts between 500 and 5,000 SKUs and demand volatility is driven by weather, assortment, pricing and local events.
With o9, the company was able to forecast at a Store-SKU level incorporating leading indicators such a weather and local events. For local events an app was developed to support baristas putting in their local knowledge about the market (e.g. a football game in two days from now, or a graduration event from an university in the same street). A change in weather, or a local event, will drive auto replenishment based on o9’s digital brain.