SPSS Analytics Partner | Case Study – Tesco Ireland

Case Study – Tesco Ireland

Solution Components

  • IBM SPSS Modeler
  • IBM SPSS Statistics
  • IBM Research – Dublin

We’ve done a huge amount of work to make sense of the data we’ve generated. It’s a gold mine, and it’s given us fantastic insights into our business.

John Walsh, energy and carbon manager

Tesco Ireland

Data analytics solution used to optimize refrigerators and reduce energy costs in grocery stores

 

Overview

Tesco Ireland is affiliated with Tesco PLC, a supermarket and retail company which was stablished in 1919 and is headquartered in Hertfordshire, the United Kingdom. With nearly 600,000 employees working in more than 2,900 stores, Tesco generated roughly USD90 billion in revenue in 2013. The retailer has operations in 14 countries and serves approximately 30 percent of the world’s grocery market.

 

Business need

Tesco Ireland conducted a feasibility study that found there was a huge variation across stores in the way refrigerator temperatures were managed. Some were run below the standard cooling temperature, and others were running too hot. The company sought a better process to ensure that its refrigerators operate at optimal temperature ranges.

 

Solution
By acquiring and harvesting the readily available data from one store and applying big data statistical approaches such as predictive analytics to a large data set, Tesco Ireland was able to validate refrigeration performance and identity case anomalies against standard policies and control strategies within its chain of grocery stores. This deeper knowledge not only yields significant energy reduction and savings in the short term but can also have a positive impact on future refrigeration control strategies.

 

Benefits
Tesco Ireland gained clear results demonstrating that optimizing the performance of its in-store freezers would help it save a significant portion of its total energy costs. Consequently, ensuring that its freezers operate at the right temperature helped the company cut refrigeration energy costs by up to 20 percent, which could realize savings of USD25 million a year across the wider UK and Ireland estate. Maintenance teams in the future should be able to assess the freezers remotely, diagnose any problems and arrive onsite with the right parts for repairs.

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