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

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

High potential solution

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

High potential solution

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

High potential solution

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

Other solutions

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

Other solutions

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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

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

Other solutions

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

Other solutions

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

Other solutions

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