Case Study - Tony's Deli

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Client Overview:
Tony’s Deli, a family-run gem in a bustling neighborhood, had been serving up pastrami on rye and Italian subs for 15 years. Owner Tony Russo managed everything himself—no IT crew, just a notepad, a cash register, and a knack for meats. But lately, his fridge was a gamble: either overflowing with unsold turkey or short on roast beef during rushes. Tony was bleeding cash and needed a fix.

The Challenge:
Tony’s inventory was a mess. He ordered stock based on hunches, not data—too much salami one week, not enough ham the next. Waste was piling up, and customers walked away grumpy when favorites ran out. He had sales receipts and supplier invoices, but no clue how to set par levels (the sweet spot for stock on hand) or stop the chaos. Profit margins were shrinking, and Tony was ready to throw in the apron.

Our Approach:
We dug into Tony’s numbers to bring order to his inventory game. Here’s how we tackled it:

• Data Grab: Pulled two years of sales receipts, supplier orders, and Tony’s scribbled “out-of-stock” notes.
• Waste Audit: Tracked spoiled or unsold items by category—meats, cheeses, breads, condiments.
• Analytics Dive: Crunched daily sales patterns, peak demand days, and per-item profitability to set par levels.
• Simple Deliverable: Gave Tony a one-page inventory guide with par levels and a weekly checklist—no tech overload, just results.

The Findings:
The data sliced through Tony’s guesswork:

• Demand Spikes: Fridays and Saturdays drove 55% of weekly sales, but stock was flatlined across the week.
• Waste Hotspots: Turkey and provolone were over-ordered (20% tossed monthly), while roast beef and Swiss ran out 3x a week.
• Par Mismatch: Salami par was 30 lbs/week, but sales averaged 18 lbs—12 lbs went stale. Meanwhile, ham’s 10-lb par couldn’t keep up with 15-lb demand.
• Cost Creep: Excess inventory tied up $800/month, and rush orders for shortages added $200 more.

The Action Plan:
We handed Tony a tight inventory roadmap:

• Set Par Levels: Adjusted stock to match sales—e.g., salami to 20 lbs, ham to 18 lbs, with buffers for weekends.
• Weekly Rhythm: Order 70% of par midweek, 30% pre-weekend based on Friday-Saturday spikes.
• Trim the Fat: Cut turkey orders by 25%, redirect savings to roast beef and Swiss restocks.
• Track & Tweak: Gave him a basic spreadsheet to log sales vs. stock daily, with a 15-minute weekly review.

The Results:
Tony put the plan in motion within a week. Three months later, the deli was humming:

• Waste Slashed: Spoilage dropped 60%—from $600 to $240/month—thanks to dialed-in par levels.
• Stockouts Vanished: Roast beef and Swiss shortages fell from 12/month to 1, keeping customers happy.
• Cost Savings: Inventory costs shrank 15% ($900/month), with no more panic orders.
• Profit Pop: Margins climbed 20%, adding $1,200/month to Tony’s take-home—no extra sales needed.
• Tony’s Relief: With inventory on lock, he stopped stressing about the fridge and started eyeing a second location.

The Bottom Line:
Tony’s Deli didn’t need a fancy system or a full-time stock guy. They needed data to set par levels and manage inventory like pros. We made it happen—fast, affordable, and dead simple. For SMEs like Tony’s, smart inventory isn’t just efficiency; it’s survival. Want to stop guessing and start winning? Let’s crunch your numbers.