Background
In the dairy sector, sales growth does not always translate into profit growth. In the company studied, revenues are rising, but EBITDA remains flat, and waste generation increases in parallel with sales. This pattern suggests that current sales push strategies (designed to drive short-term sales) may inadvertently be increasing byproducts, waste, and associated emissions.
Research Objective
The study aims to identify optimal sales push strategies that sustain revenue growth while minimizing waste and environmental impact.
Literature Gap
Existing research highlights a key trade-off: strategies that ensure product availability can also promote overstocking, leading to higher waste levels. However, few studies quantify this balance or link it directly to carbon emissions within retail supply chains.
Methodology
The analysis focuses on yogurt products for a single retailer and evaluates two core sales push strategies:
1. Days on-hand inventory – how long stock can meet demand without replenishment.
2. Combination dispersion – how widely each SKU is distributed across retail stores.
Key research steps include:
-
Reviewing literature on sales push dynamics and waste generation.
-
Developing an emissions model to estimate the carbon footprint of waste.
-
Analyzing historical sales, demand, and waste data.
-
Building an optimization model to quantify trade-offs between sales growth, waste, and emissions.
-
Conducting scenario testing under different demand conditions to identify efficient strategies.
-
Validating findings against real operational practices to ensure practical relevance.
Expected Insights
This study will clarify how sales push mechanisms influence economic and environmental performance in dairy supply chains. By identifying strategies that balance availability with sustainability, it seeks to guide companies toward sales approaches that maximize value while reducing waste and emissions.