Management of food waste resulting from PENNY operations In each store, our employees constantly monitor their products, quantities and shelf life. If a product has a limited shelf life, we can reduce the price by up to 50%, depending on the product category, and arrange the display of these discounted items to attract customers' attention. To prevent excessive accumulation of groceries in our stores, we rely on advanced forecasting technologies and implement automated ordering systems. Moreover, thanks to our effective inventory management policies and the in-depth knowledge of our qualified staff, we are able to predict the supply requirements of stores, thus avoiding the storage of additional products. We continuously improve our operations, with priority over end-to-end inventory planning. We are in control of the supply chain by automating, streamlining, and simplifying complex inventory optimization processes to achieve as much availability as possible with as few stocks as possible. The priority for us is to have an integrated inventory planning from one end to the other. We implemented AI-powered forecasting and digital twin modeling to predict customer demand in each store, anticipate inventory requirements across the PENNY network, and improve inventory visibility in warehouses to ensure optimal supply. We automatically monitor inventory and order levels in near real-time and respond quickly to requests by making regular orders to our suppliers. We have continued to optimize the way food is fresh: • we carefully monitor expiration dates; • we plan short transport routes between warehouses and stores; • fresh products are transported using IFCO crates; • we use a logistics service with refrigerated vehicles, the temperature being monitored and controlled from production to shelf; • in stores, the refrigerators are equipped with doors, to keep the products at the optimal temperature; • We regularly train employees, thus managing to keep losses to a minimum. 3 307 2 209 1 770 1 334 452 Food waste avoided through fast sales (tons) 2020 2021 2022 2023 2024 In addition, we support as a partner the bonapp.eco application, which aims to combat food waste, by connecting consumers with retailers that offer food with guaranteed quality, but which is approaching its expiration date. Through this app, our customers can benefit from 50% discounts on PENNY products listed in the app. This strategy helps to accelerate the sale of selected products, and thus we manage to support our customers through food products at advantageous prices and to limit the amount of surplus products. In 2024, we sold over 75 000 products, saving 45.7 tons of food. MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 184/276
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