Market Kurly Maintains Food Waste Rate Below 1% for 7 Years Using Big Data Technology

Market Kurly Maintains Food Waste Rate Below 1% for 7 Years

[Asia Economy Reporter Jeon Jinyoung] Market Kurly announced on the 11th that, as a result of enhancing its big data analysis capabilities since the early stages of its business in 2015, it has maintained a fresh food waste rate below 1% over the past seven years. According to Statistics Korea and others, the fresh food waste rate at large supermarkets is around 3%, while at smaller grocery stores it reaches 7-8%.

Market Kurly evaluated that achieving such results amid rapidly growing scale every year is meaningful. In fact, Market Kurly's average daily order volume increased by more than 50% compared to the first half of last year, and due to the opening of the Gimpo logistics center, expansion into regional areas with Saetbyeol delivery, and an increase in ultra-fresh food SKUs, the scale of incoming orders, customer types, and product varieties have also become more diverse. Despite the significantly increased management difficulty, Market Kurly has rather greatly reduced the waste rate, proving the robustness of its logistics efficiency and service completeness.

Market Kurly can manage the waste rate more efficiently than offline stores because it precisely predicts customer orders through its self-developed data collection and analysis system called ‘Data Mureoda Juneun Meongmeongi’ (hereafter Demongi).

Market Kurly first analyzes customer purchase data through Demongi's machine learning to predict future demand and orders, and places product orders based on this. For precise prediction, it forecasts order quantities by considering various factors such as daily, weekly, and monthly unit and age-specific demand, weather, seasonal issues, customer response rates, and promotions. Through experiments with multiple variable conditions, it minimizes prediction errors and continuously enhances the system by introducing new algorithms or diversifying statistical analyses.

Moreover, even after products are stocked in the logistics center, Demongi performs real-time monitoring and big data analysis to predict order status by time and region as well as future sales volume. It also tracks inventory information in real time and suggests product promotions.

Additionally, it predicts when the inventory and workforce prepared at the logistics center will be depleted and communicates this to the logistics team, which responds across all areas including sorting, packaging, and delivery, operating an efficient logistics system based on data.

A Market Kurly official said, “Market Kurly is achieving new distribution innovation by introducing an online grocery shopping service based on data and technology to a market that has been operated offline for decades. Although the waste rate may fluctuate due to increased order volume, regional expansion, and product diversification as the service grows, we will effectively respond by integrating the advanced Demongi system and know-how.”

This content was produced with the assistance of AI translation services.