Let’s build a smarter planet

Tesco Data analytics solution used to optimize refrigerators and reduce energy costs in grocery stores

Tesco Ireland is affiliated with Tesco PLC, a and

Hertfordshire, United Kingdom retail company which was established in 1919 and is headquartered in www.tesco.com Hertfordshire, the United Kingdom. With nearly 600,000 employees working in more than 2,900 stores, Tesco generated roughly USD90 billion in revenue in 2013. The retailer has operations in 14 countries and serves Solution Components approximately 30 percent of the world’s grocery market. • IBM® SPSS® Modeler The Opportunity • IBM SPSS Statistics Tesco Ireland conducted a feasibility study that found there was a huge • IBM Research – variation across stores in the way refrigerator temperatures were managed. Some were run below the standard cooling temperature, and others were running too hot. The company sought a better process to ensure that its refrigerators operate at optimal temperature ranges.

What Makes It Smarter By acquiring and harvesting the readily available data from one store and applying big data statistical approaches such as predictive analytics to a large data set, Tesco Ireland was able to validate refrigeration performance and identity case anomalies against standard policies and control strategies within its chain of grocery stores. This deeper knowledge not only yields significant energy reduction and savings in the short term but can also have a positive impact on future refrigeration control strategies.

Real Business Results Tesco Ireland gained clear results demonstrating that optimizing the performance of its in-store freezers would help it save a significant portion of its total energy costs. Consequently, ensuring that its freezers operate at the right temperature helped the company cut refrigeration energy costs by up to 20 percent, which could realize savings of USD25 million a year across the wider UK and Ireland estate. Maintenance teams in the future should be able to assess the freezers remotely, diagnose any problems and arrive onsite with the right parts for repairs. For More Information Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/spss.

To learn more about Tesco Ireland, visit www.tesco.com. © Copyright IBM Corporation 2014

IBM Corporation Software Group “We’ve done a huge amount of work to make sense Route 100 of the data we’ve generated. It’s a gold mine, and it’s Somers, NY 10589 Produced in the United States of America given us fantastic insights into our business.” December 2014

IBM, the IBM logo, ibm.com and SPSS are trademarks of — John Walsh, energy and carbon manager International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.

This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

Please Recycle

YTC03924-USEN-00