Guac: The Avocado-Sized Solution to Food Waste (YCS23)

Guacamole lovers, rejoice! We've got some fantastic news for you. While Guac might not be a tasty dip for your tortilla chips, it's a game-changer in the world of grocery retail.

Guac is the brainchild of cutting-edge machine learning technology, and its mission is simple yet crucial: to accurately forecast demand for grocery retailers, reducing food waste, and ensuring your favorite avocado is always in stock. 😉

The Problem: Food Waste and Empty Shelves 🗑️

Picture this: you walk into your local supermarket, craving some fresh guacamole for your weekend fiesta. But alas, the avocado bin is empty, and you're left with a deep sense of disappointment. Why does this happen?

Predicting what grocery items customers will buy is no easy feat. It's like trying to predict the weather, except with hundreds of variables at play. Factors like weather conditions, road closures, and even sports events can send product-level demand on a rollercoaster ride. Despite these challenges, many retailers still rely on basic methods like regression models or Excel spreadsheets to forecast demand. And the result? Tons of wasted food and empty shelves.

This food waste epidemic costs grocery retailers in Europe and the US a whopping $188 billion each year, not to mention the staggering 15 million metric tons of greenhouse gas emissions it generates annually, contributing to climate change.

Guac's Solution: Precise Predictions and Less Waste 🥑 

Now, let's introduce Guac, the superhero of the grocery aisle. Guac employs an industry-leading algorithm that predicts order quantities for every item, every day, and at each store location. The secret sauce? Guac boasts an impressive average forecast error (Mean Absolute Error or MAE) of just 0.95 units. This translates to a remarkable 38% reduction in food waste for its current customers.

But how does Guac work its magic? Let’s take a look 👇

• Real-World Data Integration: Guac understands that grocery demand isn't solely driven by historical sales data. It taps into the real world by injecting over 230 external variables into its prediction models. These variables capture people's buying behavior, taking into account factors like sports betting odds. Yes, you read that right – even sports matches can impact your grocery shopping. When a close game is predicted, more people tune in, leading to a spike in beer sales.

• Store Location Customization: Not all grocery stores are created equal. Guac recognizes that stores located just a few miles apart can have drastically different customer behaviors. It tailors its predictions to suit the unique characteristics of each store, ensuring precision in inventory management.

• Inventory Ordering Optimization: Guac doesn't stop at forecasting; it turns those hyper-accurate predictions into actionable inventory order quantities. It considers individual SKU-specific requirements, minimum order quantities, promotions, loss estimates, shelf life, supplier lead times, and more, ensuring that your favorite items are consistently in stock.

• Seamless Integration: Guac doesn't ask retailers to overhaul their systems. Instead, it integrates its ordering recommendations smoothly into the retailer's existing inventory ordering software and workflow, whether it's done at the headquarters or store level. Guac adapts to fit the retailer's system, making implementation a breeze.

🌱 What You Can Do to Help

While Guac is revolutionizing the grocery retail industry and tackling food waste on a grand scale, there are plenty of ways you can contribute to reducing food waste in your own life. To name a few you can always plan your meals ahead, embrace your leftovers, reduce portion sizes, compositing, and many, many more!

By taking simple steps like these in your daily life, you can complement Guac's efforts to reduce food waste and contribute to a more sustainable and environmentally friendly food system. Together, we can make a substantial impact on reducing food waste and its harmful effects on our planet. 🌍🌱

So, the next time you head to the grocery store, remember that behind those well-stocked shelves and your favorite avocado is Guac, working tirelessly to reduce food waste, save retailers money, and make sure your guacamole dreams come true. Guac is not just a solution; it's an avocado-sized hero in the fight against food waste! 🥑🦸‍♂️