Earlier, Beatris explained here on the ILOS Blog, The five functions of inventory. There is yet another reason why most retailers purchase and stock more units of some products than necessary, which has to do with the aesthetics of their stores, with marketing, and which exploits the psychology of shoppers. This habit, however, can cause some waste of products, especially food.
It is well known that we consumers are very susceptible to visual stimuli when we go shopping in a supermarket, for example. It is no wonder that both retailers and suppliers of consumer goods invest time and money in merchandising, with the aim of creating good looks in stores that encourage us to buy more. One of the points observed in this regard is that consumers are less likely to buy products that are on practically empty shelves, and more tempted to purchase them when they see a gondola with an abundance of goods and colorful. The video below shows a merchant explaining this behavior and how he needs to use this tactic to sell.
Video 1 – Waste of food due to exhibition stock
Source: msnbc
The big problem is that markets and stores end up buying and stocking much more products than they need simply to maintain a constant good appearance on the shelves, and with that they end up throwing away the goods that pass their expiration date. Obviously, this is waste that comes at a cost to retailers and consumers alike.
Figure 1 – Multiple vegetables on beautiful display in a supermarket. How much of that goes on the table and how much goes in the trash?
Source: Sutiassoc
Of course, the ideal thing would be for us, when we go shopping for the next month, to always be aware that fruits and vegetables that are alone in the middle of a box can taste the same as those that are arranged in a wonderful arrangement. like the one in figure 1, but if understanding consumer behavior is a more difficult task, changing the way human beings think is an even more complicated one.
However, some initiatives can come from the stores themselves to reduce the stock of products on display without major losses to the appearance of their products. displays. The Boston University canteen was able to reduce the amount of food wasted before consumption by 60% simply by downsizing the pots in which customers got their salads and rearranging the display of baked goods, and without any loss in customer satisfaction. Other creative solutions natural can be used, for example, the use of mirrors to create optical illusions and continue to attract consumers. It's twice the picture with half the food.
Figure 2 – Mirrors used to create a more beautiful image of products in a supermarket
Source: Rafso
Encouraging the customer to buy with beautiful product displays is an important and totally valid strategy for retailers. But waste and excess inventories are never good for the sustainability of a supply chain, so it's important that initiatives to reduce these unnecessary losses are explored by companies around the world.
References
Food Waste: Last Week Tonight With John Oliver (HBO) – 19/07/2015 – https://www.youtube.com/watch?v=i8xwLWb0lLY
https://saynotofoodwaste.org/what-can-you-do/supermarkets/
http://blog.leanpath.com/5-factors-driving-food-waste-in-foodservice
Fernando Chalréo
He has been working on consulting projects in Logistics and Supply Chain for 5 years, with experience in companies in the consumer goods, retail and food and beverage sectors. Types of projects already carried out: Sales & Operations Planning, Inventory Management, Network Planning, Business Process Review, Logistics Indicators and Transport Management
