The Retail Bulletin reported on an interesting approach to waste reduction initiatives being pursued by a major food retailer. Tesco ties top executive bonuses to slashing food waste by half covered the UK retailer’s announcement.
The article stated that “…Tesco will be aligning executive pay performance targets to key sustainability measures, including reducing food waste… This means that 25% of the Performance Share Plan awards Executive Directors receive will depend on Tesco’s progress on key sustainability measures… For top executives, meeting these goals is worth tens of thousands of pounds or more in Tesco shares.”
Adjusting demand forecasts and optimizing store inventories to account for the daily sales impacts of changing weather conditions is a proven way to minimize perishable food waste. Planalytics’ weather-driven demand analytics are being integrated into demand forecasting and replenishment solutions at major grocers to generate overall perishable waste savings of 5 to 10%. In addition to lowering waste and the associated carbon emission reductions, the weather-driven demand adjustments typically produce 75 to 150 basis points in additional revenue (due to fewer stockouts) and profit enhancement of 2-6%.
Best of all, retailers can quickly incorporate weather-driven demand analytics into existing processes and begin capturing benefits within a few months. An accelerated path to earning more by wasting less for any grocery business and – for Tesco executives at least – a chance to secure those bonuses.
Learn more by visiting Planalytics’ Demand More for Grocery webpage.