When we think of big data, it’s tempting to assume that it’s only the big brands and organizations with enough data and the technology to incorporate data into their business models. While some are more successful than others, smaller brands are also using the power of data analytics to grow their profits. LMK Group, a grocery/meal service company, has so successfully used advanced analytics through Microsoft Azure1 that the company has moved from being a start-up to its place now as a NASDAQ-listed company in little more than a decade.
LMK2 is an innovative Scandinavian grocery store that creates meal kits and delivers them directly to its customers. In 2020, LMK delivered approximately 1.74 million prepackaged meal kits. LMK has figured out a way to use data analytics to give local farmers purchasing forecasts so that crops are planted in advance to meet future demand. LMK’s business intelligence system has already dramatically cut its food waste to less than one percent. For perspective, 1.4 billion hectares of land, 28 percent of the world's agricultural area, is used annually to produce food that is lost or wasted.3 Most grocery stores report around 15-20 percent of food waste.
What’s For Dinner?
Big data fusion happens when companies use data drawn from multiple sources to build a sophisticated system that allows them to improve the supply chain. The key to LMK’s ability to forecast so precisely is through its use of machine learning models built on Microsoft Azure, pulling data from multiple sources. Based on its customer's historical preferences, LMK has created more than 2.1 million favorite meal combinations, enabling them to accurately predict what customers will order. This forecast data is then provided to local farmers to ensure the crops are ready. Farmers know exactly what to plant and when which dramatically eliminates wasted food.
When big data is combined with insightful and carefully curated analytics, organizations can pivot faster and drive profits. LMK collects data and uses that data to drive action across the entire supply chain. With the right big data platforms in place, the better your team’s chance at driving value. But data is only as good as the organization’s IT team members’ training to manage the information effectively.
Is your team ready to innovate to use big data to solve business problems and improve your company’s productivity? Let New Horizons Kingston help you correctly address your significant data challenges so that you can build intelligent business initiatives to create new growth opportunities.