Food waste and poor stock control are valued at nearly 990 billion US dollars worldwide1. What if we took inspiration from yield management ? This commercial strategy was developed in the 1950s and is applied in areas such as air transport. It involves adapting the price of a product in real time to liquidate stocks and reduce unsold goods.
The Israeli start-up Wasteless has taken inspiration from this strategy to develop the world s first and only solution for establishing variable prices. The system means that several prices can coexist for the same product in the same store. The price is adapted according to 43 dynamic variables, the most important of which are the product s use-by date and the remaining stock level 1 . The system
SOLUTION Nr. 4
WASTELESS are you ready to buy products at variable prices to fight food waste?
1 - FAO. 2 - Radio Frequency Identification (RFID) is a method of identification that allows data to be stored and retrieved remotely by transferring electromagnetic energy.
incorporates multiple factors such as the store s closure days, the strength of the brand, variability of sales over time, etc.
The Wasteless project involves adopting individual management of each product with the use of RFID2 label that can transmit information remotely in the form of a radio signal. The system is continuously synchronised with electronic price displays on the store s shelves 2 or e-commerce sites to display the calculated price in real time. At the same time, the tool provides stock management advice to avoid outages and stimulate product rotation. The new system also has the ability to learn over time in order to suggest more flexible price signals depending on the context and the risk of losses.
A pilot store in Madrid belonging to a major retail chain recorded a 6.3% increase in sales after adopting Wasteless. And there are also environmental benefits: over the test period, losses of food products fell by a third. A small step for technology, a giant leap for the planet!