Solutions


What should an optimised commercial and operational model look like? A combination of leading examples such as milk-run model, automated picking, delivery subscription fees, and hybrid delivery solutions like click-and-collect could eventually result in a healthy online grocery business.

Profitablity solutions home delivery

High potential solution

Making sure consumers pay a fair share of the delivery operation increases profitability, dependent on pricing strategy

High potential solution

Incentive consumers to use click-and-collect options instead of home delivery increases profitability with 5 -7% per order

High potential solution

Automating the online picking operation in the warehouse increases profitability, dependent on the degree of automation

High potential solution

Creating fixed delivery timeslots and use a modern milk run model potentially doubles the orders delivered per hour

Other solutions

A variety of traditional (bikes, vans) or future (droids, drones, autonomous vehicles) can decrease last mile costs

Other solutions

Diversify the ship-from location (CDC, RDC, store) based on proximity to the consumer and market density creates an optimal balance between picking and last mile costs

Profitablity solutions Click & Collect

High potential solution

Automating the online picking operation in the warehouse increases profitability, dependent on the degree of automation

Other solutions

Lockers where consumers can pick-up C&C orders without interaction with store employees eliminates customer facing store costs

Other solutions

Combining click and collect orders with regular store replenishment decreases the replenishment costs, but the additional warehousing operations needed increase warehousing costs

Other solutions

Picking click-and-collect orders from store decreases replenishment costs, but significantly increases picking costs