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Blue Yonder Case Study: Peru’s dominating retailer – Supermercados Peruanos

Supply chain decisions and management are very important in the hyper-competitive digital world. Supermercados Peruanos is a dominant supermarket chain in Peru and is continuously transforming their supply chain with Blue Yonder solutions. They have recently implemented Blue Yonders forecasting and replenishment solutions to complement their existing solutions such as merchandise operations and space planning. 

Supermercados Peruanos identified that to ensure high availability with optimal inventory levels is greatly achieved through demand forecasting and order efficiency. WIth over 500 retails stores (including Plaza Vea, Vivanda & Mass) the company operates in a multi-format network dedicated to the distribution of food, electronics and household products. The growth of the company has been consistent since 2006 due to the implementation of an expansion strategy which involved the building of new stores and remodeling of existing sites. 

Blue Yonder has assisted the retained to increase accuracy and value of forecasts, reduce inventory, manage operational costs and improve customer service levels. Additionally, they have helped them to achieve more agile, profitable and responsive operations through supply chain. Blue Yonder’s solution will provide the retailer with improved availability of products to end consumers while reducing losses from product expiration. Artificial Intelligence (AI) and Machine Learning (ML) capabilities Supermercados Peruanos will have visibility into external demand factors to automate and manage its fresh and ultra-fresh categories, reducing food waste.

“I was pleasantly surprised at how Blue Yonder’s algorithms deliver accurate forecasts both granularly and aggregated. It’s been a challenge to implement this project during COVID-19, which has altered forecasts for a day of maximum sales due to lockdown restrictions. However, the thorough review, the control process and the versatility of the model created by Blue Yonder’s solutions have allowed us to realize and act accordingly. As we move towards full automation, we are confident that Blue Yonder solutions will continue to be valuable tools for our business, helping us meet our goal of digitally transforming our supply chain” said Cristian Pugin, Director of Replenishment, SPSA.

The Blue Yonder Luminate Platform (running on Microsoft Azure) uses AI and ML capabilities for end-to-end cognitive response and visibility. This helps Supermercados Peruanos to predict consumer demand, creating optimal replenishment orders based on the relevant stores and accurate management of inventory levels.This, in turn will highly maximise the positive customer service experience. 

The solutions are powered by the Blue Yonder LuminateTM Platform, which runs on Microsoft Azure and utilizes AI and ML capabilities for end-to-end cognitive response and visibility. These capabilities will allow  Supermercados Peruanos to predict consumer demand, creating the optimal replenishment orders for each store and managing the accurate inventory level with greater accuracy to maximize the level of service for its customers.

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