Return

Definition 

Many are familiar with returns from online shopping, but the term is also used in the bakery industry. There, "returns" are the unsold baked goods that are left over at the end of the day and have to be disposed of.  

So the goal of bakeries is to keep returns to a minimum. There are various ways to achieve this:  

1. Minimize returns by using planning solutions that predict sales volume. It is determined what will be sold and thus the return rate is reduced. For example, with foodforecast's solution and artificial intelligence, returns are reduced by an average of 30%. 
2. A sensible further utilization of the return. For example, the previous day's returns can be used in the production of new baked goods.   
3. Offer next-day returns at a reduced price. Instead of throwing away baked goods, many bakeries take the opportunity to sell returns to their customers at a reduced price the following day.  

This approach helps bakeries reduce their returns and food waste. 

Importance of returns mitigation for the bakery industry 

Returns not only lead to more food waste, but also to a waste of resources. The production of baked goods requires energy and raw materials, which are wasted with every returned product. Returns are therefore always associated with costs. In Germany alone, around 600,000 tons of baked goods are returned every year. This corresponds to a goods value of around €65,000 per year and store. By using artificial intelligence, the returns rate can be lowered, thus reducing costs and food waste.