Less Shrink, Better Freshness: Good for the P&L, Great for the Shopper
Case Study
Author: Bob Baxley | 5 minute read
The Opportunity
Drive profitability and operational excellence by optimizing inventory, cutting costs, elevating experiences, and strengthening brand reputation through improved forecasting, accountability, and analytics to reduce shrink and waste.
The Approach
Assessed Current State: Identified alignment and execution gaps, exposed conflicting incentives, and highlighted systemic accountability issues driving shrink
Developed Improvement Plan: Designed a multi-faceted roadmap with key projects to strengthen capabilities, fiscal management, organizational effectiveness, and shopper experience
Unlocked Value Creation: Identified short- to mid-term opportunities with potential to reduce annual shrink by 50–75 basis points
- Conducted a cross-functional assessment of capabilities, roles, communication, and processes, benchmarked against Best-in-Class
- Built a prioritized portfolio of initiatives across functions, with estimated impact and effort, structured in a laddered framework: Visibility (See It), Capability (Build It), and Execution (Do It)
- Applied TPG’s proprietary four-block framework for each initiative, outlining Current State, Proposed Solution, Benefits, and Execution Path for resource allocation and/or organizational design
- List ItemIdentified significant incremental enterprise value in Supply Chain & DC, benchmarked against Best-in-Class both within and beyond the grocery channel
The Outcome
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- Executive Leadership embraced the breadth and depth of TPG’s recommendations
- Leadership valued the newfound transparency and cross-functional openness this opportunity created
- Total annualized estimated value is 50 to 75 bp on $5B of revenue
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Meet The Team
Bob Baxley
Don Fitzgerald
Carli Rosencranz
Steve Wetmore
