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The Fight for Competitive Advantage in Omnichannel Fulfillment
Power Session 4B: 9:30 a.m. - 10:30 a.m.Ali Bouhouch
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The Food Value Chain – From Farm to Fork
ChainLink Research. “Cold Chain: A Story of Integration.” Web. November 1, 2011. http://www.chainlinkresearch.com/research/detail.cfm?guid=5119959C-3048-79ED-99F1-3533EE04E8AA
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Are You Prepared to Deliver a True Omnichannel Experience?
Home Delivery
A P R I L 15 , 2023 4
Grocery Industry Trends
• Tremendous growth anticipated
─ New Entrants, Stakeholders, and shifting business models (Amazon Fresh, Google Express, Uber, etc.)
─ Greater convenience and access
• Customer expectations influenced by current modern retail experiences
• Highest future growth channel for grocery is online
─ 3.3% of total US grocery spending is online
─ BI Intelligence estimates online grocery sales will grow at a CAGR of 21.1% reaching nearly $18b by 2018
─ 25% of US adults have bought hard to find specialty food and beverages online
Bricks Meets Clicks. “What’s ahead for online grocer?” Web. October 10, 2014. http://www.brickmeetsclick.com/what-is-ahead-for-online-grocery--updated-growth-forecast-and-implications
Business Insider. “How E-Commerce Is Finally Disrupting The $600 Billion-A-Year Grocery Industry” Web. September, 2014. http://www.businessinsider.com/e-commerce-disrupting-600-billion-grocery-industry-2014-8#ixzz3HNX2GnUR
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Omnichannel Experience – Tesco Example
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Hot Omnichannel Trends
• Buy online, pickup anywhere
• Ship from store or supplier
• Mobile “In-Store” mode
• Endless aisle (everything, everywhere)
• Augmented reality shopping (using mobile)
• Internet of Things (appliances placing orders)
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Buy online, pickup anywhere – Tesco example
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Free in-store pickup at 7/11 or Staples stores for Amazon online orders
Buy online, pickup anywhere – Amazon example
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Ship from Store or Supplier
HomeDelivery
Ship from Store
Ship from Suppliers
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Mobile “In-Store” Mode – Assisted Shopping
Real-time store navigation
Product info inquiry
Get digital coupon by scanning
barcode
Receive promotion information
Think With Google. “New Research Shows How Digital Connects Shoppers with Local Stores” Web. October, 2014. https://www.thinkwithgoogle.com/articles/how-digital-connects-shoppers-to-local-stores.html
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Endless Aisle (Everything, Everywhere)
• Shared Inventory
• All items are available to all channels
• No channel specific inventory
• Fulfill online orders from stores
• Missing items in store are delivered to home
• Deliver new items directly from suppliers
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Augmented Reality Shopping (using mobile and wearables)
• Use mobile device to provide augmented data for
─ Pricing
─ Offers
─ Ingredients
─ Nutrition
─ Recipes
─ Alternatives
• Wearables are coming soon
─ Google Glass
─ Apple Watch
─ Smart Cart
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Low on Milk? Order Automatically
Internet of Things (Appliances Placing Orders)
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Concluding Remarks
• Understand your role in fulfilling for omnichannel demand
• Build a strategy around your position in the value chain
• Contribute to better visibility, agility and responsiveness
• Be ready to participate in last-mile delivery
─ Smaller shipments
─ On-demand shipping
─ Shipping direct to the consumer
• Start manual, automate as you go
• Stay focused on the Customer Experience
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Grocery of The Future, Big Picture
Get seasonal assortment news & personal deals
Shop grocery anywhere on mobile phone and tablet, create shopping lists
Collaborative family and social shopping
Submit orders for to-door delivery or at-store pick up
Home delivery
Shop in store with mobile phone as an assistant: in store navigation, product info, shopping lists
Get store assortment news and personalized promotions
Shop by recipes and meal ideas
Shop “interesting” products personally
Get “boring” items pre-packaged on checkout
Ensure freshness, decrease waste, and manage inventory more efficiently by engaging customers to pre-order
Manage inventory and personalized promotions with robust data analytics
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