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 the sales volume. It determines what will be sold and thus reduces the returns rate. With the solution and artificial intelligence from foodforecast , returns are reduced by an average of 30%, for example. 
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. 

Minimize returns

Minimizing returns is a key factor in bakeries in order to reduce overproduction and therefore food waste. At the same time, it improves the profitability and sustainability of the business. Returns can be minimized in various ways: 

• Demand-oriented production: Accurate sales forecasts and flexible production planning allow the quantity of goods produced to be better adapted to actual demand, thus avoiding overproduction and the associated returns. 
• Sale of leftover stock: Bakeries can sell leftover stock at reduced prices, for example shortly before closing time or via special offers to minimize surpluses. 
• Donate and reuse: Surplus but still edible baked goods can be donated to charitable organizations or processed into other products to minimize food waste. 
• Customer feedback and loyalty: Regularly obtaining customer feedback and loyalty programs also help to better adapt the product range to the wishes and needs of customers and thus improve the ability to plan requirements.  
• Improved warehousing and logistics: Efficient warehousing and logistics systems ensure that products are available on time and in optimum condition, reducing returns due to quality defects or expired best-before dates.