Stefan Kalb of Shelf Engine: Combating Food Waste with Data Science

TL;DR

Shelf Engine is tackling the global food waste pandemic by using intelligent forecasting to help grocery stores reduce waste and increase sales.

Transcript

if you look in the 1970s and you walked into the average grocery store you get about 7 000 skus in the grocery store today you walk into your average grocery store and you have about 45 000 skus 45 000 it's insane it's absolutely crazy wow how can you manage that many it's absolutely absurd if we were just selling a sass product i don't think that ... Read More

Key Insights

• 😋 The demand for fresh food and the increased number of SKUs have contributed to the rise in food waste in grocery stores.
• 😒 Shelf Engine's intelligent forecasting solution uses AI and data analytics to accurately predict demand and manage inventory.
• 🥡 By taking on inventory risk, Shelf Engine can offer a guarantee on sales and help grocery stores reduce waste and increase profits.
• 🥺 COVID-19 highlighted the need for better inventory management solutions, leading to increased demand for Shelf Engine's services.

Questions & Answers

Q: Why is food waste a major problem in grocery stores?

Food waste in grocery stores has increased due to the demand for fresh food and the proliferation of SKUs, resulting in shorter shelf lives for many products.

Q: How does Shelf Engine address the problem of food waste?

Shelf Engine uses AI and data analytics to forecast demand and manage inventory in grocery stores, enabling more accurate ordering and reducing waste.

Q: What is Shelf Engine's business model?

Shelf Engine manages a grocery store's orders and guarantees their sales, taking on the inventory risk themselves. They work closely with vendors and use their own AI system to optimize order quantities.

Q: How does Shelf Engine ensure accurate inventory management?

Shelf Engine has a field team that collects data from stores and ensures correct inventory counts. They also have direct integrations with both grocery stores and vendors to reconcile data and maintain accuracy.

Q: How does Shelf Engine's AI play a role in demand forecasting?

Shelf Engine's AI analyzes data from various sources, including store sales, traffic, and weather data, to create a demand distribution for each SKU in each store. This allows for accurate predictions of future sales.

Q: Why does Shelf Engine take on the inventory risk for grocery stores?

By taking on the inventory risk, Shelf Engine can ensure accurate inventory forecasting and ordering. This allows them to optimize sales and reduce waste, benefiting both the grocery store and Shelf Engine.

Q: How has COVID-19 impacted Shelf Engine?

COVID-19 caused a surge in demand for grocery stores, which highlighted the need for better inventory management solutions. Shelf Engine experienced rapid growth during the pandemic but also faced challenges in scaling and maintaining team cohesion due to remote work.

Q: Does Shelf Engine have plans for international expansion?

Shelf Engine has received significant interest from international markets and is considering expanding globally to help address food waste on a larger scale.

Summary & Key Takeaways

• Shelf Engine was founded in 2016 to address the problem of food waste in grocery stores, which has been exacerbated by the increased demand for fresh food and the proliferation of SKUs.

• The company's solution involves using AI and data analytics to accurately forecast demand and manage inventory in grocery stores, leading to reduced waste and increased profits.

• Shelf Engine has experienced rapid growth, with a 10x increase in revenue in 2020, and is now considering international expansion to help tackle food waste on a global scale.