Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI Contents Introduction ................................................................................................................................................................................................ 3 The Problem ............................................................................................................................................................................................... 3 The Solution ................................................................................................................................................................................................ 4 Increase in ROI ........................................................................................................................................................................................... 4 Nimble’s Temperature Monitoring Solution ....................................................................................................................................... 6 Benefits of Nimble’s Wireless temperature monitoring ................................................................................................................... 7 About Us ...................................................................................................................................................................................................... 8 Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 Introduction The objective of this primer is to provide the reader with an understanding of how a leading ice cream manufacturer used Nimble’s wireless temperature monitoring devices to reduce wastage and thereby increased their ROI. The Problem A leading ice cream manufacturer and retailer in India was wasting nearly 20% of its manufactured ice cream due to temperature failure. The company has more than 100+ plus stores selling ice creams, each store has a cold room to store the ice cream and four/five display freezers. When temperature fails in either one of the freezers, the store admin would call the company’s support team who will inturn send a technician to fix the issue. On an average the whole process of identifiying the failure and attending the issue takes about 5 – 6 hours But, the normal out-of-refrigeration limit for ice creams is less than an hour, beyond which the ice cream starts melting. The melted ice cream crystallizes if frozen again and crystallized ice cream is considered a wastage by the company as it reduces the taste of the ice cream. Whereas, the admin notices a freezer failure only after the ice cream starts melting. And, by the time the admin informs about the failed freezer the ice cream would have melted and it will become inconsumble, and considered a wastage. Worst case secnerio, what if the admin never notices that the freezer has failed or what if there is a power outage causing temperature excursions. In this way the company was losing nearly 20% of the manufactured ice creams due to temperature excusions. When the company started looking for a solution to reduce wastage because of temperature failure. They wanted a solution that can alert their managers automatically, when there is temperature failure. Most, of the devices the company came across were wired devices. A wired solution means, less mobility - they cannot move their display freezers based on their sales strategy. Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 So, the company wanted a reliable and automated wireless temperature monitoring solution that help them reduce wastage and also increase their ROI, on the long run. The Solution Nimble Wireless provided an end-to-end temperature monitoring solution to help the company reduce wastage. Every freezer was fitted with a remote temperature monitoring device which would wirelessly communicate with a cellular gateway placed inside the store. The device will collect temperature data every 15 minutes and forward them to the cellular gateway which then forwards the data through a cellular network to the IRIS cloud application. The IRIS cloud application aggregates the data collected from all the stores and displays it on a remote dashboard. The managers were given a secure login to access the dashboard. Using the dashboard, the managers can have a birds eye on all the freezers across different stores. In the case of a temperature failure, the device sends an SMS and email alert to the corresponding manager/admin. The admin can now act swiftly and change the freezer or move the stored ice creams to a different freezer. This way the company reduced it’s wastage to about .5%. Increase in ROI Let’s us assume the company was manufacturing 500,000 INR worth of ice cream for a month for one store. There are four display freezers and one cold room in each store, for calculation purpose lets assume each of the freezers and the cold room is stocked with 100,000 INR worth of ice creams. On permutation basis lets assume each one of the freezers fail twice every year and the loss due to failure is 60%. Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 ROI Calculation Cost of total ice cream per month = 500,000 Cost of ice cream per freezer = 100,000 Cost per year – 500,000 x 12 = 60,00,000 INR Loss perctange per freezer – 60% (60,000 INR) Permutation on total loss per yer = 2 times x 5 freezers = 10 times So the total loss = loss percent x no. of times - 60,000 x 10 = 600,000 Loss percentage on a yeraly basis – 10% of total production On installing the device to monitor temperature. The loss is reduced to less than .5% which is 30,000 per year. *All calculations in INR ROI for Retail Ice Cream Store (in INR) 70,00,000 60,00,000 60,00,000 60,00,000 50,00,000 40,00,000 30,00,000 20,00,000 10,00,000 6,00,000 60,000 0 Without Nimble Solution Prodcution Per Year With Nimble Temperature Monitoring Solution Loss Per Year With cost of installing and maintaing the device being less than 20% of the total loss. The company got nearly 300% ROI within a year of implementing Nimble’s temperature monitoring solution. Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 Nimble’s Temperature Monitoring Solution Nimble provides both hardware and software needed for reliable temperature monitoring thus providing a complete end-to-end solution. Unlike other products Nimble’s devices are truly wireless, the devices can run on both battery and power, the devices use Zigbee and cellular network to communicate temperature data. With built-in battery the devices send temperature data even during power outage, which is the at most needed time to monitor temperature. The data is stored and processed in cloud Toucan devices send data through cellular network NIMBLE’s IRIS Application correlates the collected data Multi Point Temperature Monitoring Toucan Cellular gateway SORA Wireless Sensors SORA Wireless Sensors SORA Wireless Sensors collects and sends the temperature data wirelessly to the cellular gateway SORA Wireless Sensors Configure the devices using IRIS Application Cold Store Room Deep freezer Visible Cooler Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 Monitor freezers temperature remotely using desktop/mobile Benefits of Nimble’s Wireless temperature monitoring Simple and easy installation –Drop/Snap the device inside the storage containers and configure it over the air Simple automated alerts – When temperature excursions occur an automated alert is sent as a text message and/or email. Easy to track, trace and monitor assets – Monitor real-time temperature and GPS location right from your desktop or mobile using IRIS application Simple configurable settings– Configure threshold limits and set geo-fence right from the dashboard in simple steps. One click reports - View and download temperature history reports for compliance purpose Easily scalable – Monitor temperature from a single container to multiple storage warehouses. Segregate them based on customized names, type of assets, region, etc. Secure cloud storage- Data is stored and processed on secure cloud storage. Easy access of data - Access to information online in real time from any computer or smartphone Nimble’s Wireless Temperature Monitoring Devices SORA Sensor & Toucan T30 Dimensions Senor Temperature Sensor Type Connectivity Usage 63 X 60 X 32 mm Temperature/Ambient/ Proximity External Probe ZigBee/WiFi (CDMA/GSM through gateway Toucan T30) Multi-Point Temperature Sensor Toucan T20/25 98 X 63 X 26 mm Temperature/Ambient/ Proximity External Probe CDMA/GSM Single-Point Temperature Sensor • Toucan T25 has built in GPS sensor to track asset’s location and temperature in real time • SORA Sensors can be placed across different rooms or floors and can also be used as a repeater to connect to the gateway • Optional External battery to extend battery life up to 3 years Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 About Us Nimble Wireless is a leading M2M/IOT company. Nimble’s Toucan and SORA devices help customers to track and monitor assets remotely. The IRIS cloud application, on the other hand, alerts users when something goes wrong and provides readable reports. Thus, providing an end-to-end solution for Asset Tracking, Cold Chain Monitoring, and Energy Monitoring. With worldwide GSM compatibility and certified by FCC for Verizon and Sprint in the U.S for asset monitoring and tracking. Sense your medical shipments even if they are thousands of miles away. U.S.A nimble-usa@nimblewireless.com +1 858 935 7381 INDIA www.nimblewireless.com Case Study - How an Ice Cream Retailer Reduced Wastage and Increased its ROI v1.0 #CS2000203 March, 2015 nimble-india@nimblewireless.com +91-44-42656219
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