In order to provide factual, neutral, and trustable information to retailers, we decided to ask accounting firms to validate our decision-making tool: our simulator. Amongst others, the top firm Ernst & Young granted its approval. This simulator allows us to highlight the best ways to recover food waste, both in volume and in value. It is also perfect to compare different methods, simulate changes in a supermarket, and anticipate major financial shifts for our clients.
In this article, we will compare two different recovery policies. Both of these scenarios are based on real data and rigorously extrapolated to fit the example of a store with a 50M€ turnover, a 1.5% net revenue, and a 1.5% gross waste ratio.
Scenario #1: donation first
For this first scenario, we will set things up this way:
- donation to charities is the most dominant form of recovery: 65% of the volume
- let’s add some baskets: 5%
- and complete the whole thing with animal food product: 30%
With the simulator, we have:
This supermarket will save 100% of its food waste volume, with an economic impact of +19%. It represents an increase of 144.279€. Not bad! But is it optimal?
Scenario #2: discount first
Let’s modify balances for this exact same store:
- discount is now dominant: 65%
- donations are next, to complete it: 25%
- the remainder is sent toward animal food: 10%
Thanks to this new policy, our simulated store will recover 100% of the volume (again). But now, the impact on the annual net revenue reaches 52%, an estimate of +392.027€. It’s a lot better!
Choosing the right recovery policy is important. There are many possibilities: having an expert in your corner might make a difference!
More than a thousand audits have already been performed, improving projections a little bit more every time. We can project a personalized, efficient food waste policy to help you reach maximum performance and profitability.