Conquering E-grocery Logistics Challenges Delivers Customer Convenience
In the pursuit to disrupt traditional grocery retailers, companies like RedMart and New Jersey-based Peapod have become experts at solving complex logistics and order fulfillment scenarios driven by customer demand.
“The online grocery category is more difficult than other e-commerce categories because we have many more items per order. Our customers are always becoming more demanding: they want their products faster, they want them fresher, and they want very high quality, so accuracy and delivery matter more and more.”
That’s Roger Egan, Co-Founder and CEO of Singapore-based RedMart describing the challenges of running a successful online grocery business and the need to consistently deliver a fulfilling experience to customers. He defines RedMart as a customer-centric online grocery deliver service and e-commerce marketplace, and is quick to point out RedMart is also as a logistics and technology company.
Online grocers face unique logistics challenges and requirements such as:
- More unique items per order than typical online transactions
- High customer expectations for short order-to-delivery cycles
- Consistent temperatures that contribute to product quality for the freshest deliveries
In a high-stakes environment where temperatures and technology must work together to deliver the goods, e-commerce grocers are discovering the limitations of homegrown fulfillment and warehouse solutions and the impact on growth and service.
RedMart Co-Founder and President, Vikram Rupani explains it like this, “We’re a small company but we’re growing extremely fast. Everything was a paper-based process so the entire picking, packing and replenishment in our warehouse was completely manual and didn’t give us much visibility on how to scale the business without keeping, maintaining and improving the customer experience.”
Technology scaled to fit, ready to run
Manhattan SCALE provides the support and visibility online grocers want, unifying warehouse, labor, supply chain and transportation management to enable nimble order fulfillment.
Benefits of Manhattan SCALE for e-grocers include:
- Improved warehouse layout to speed fulfillment and reduce overhead. In the daily battle against perishable inventory and quick turnaround times, knowing exactly where stock is located is a critical differentiator in successfully delivering on customer demands.
- Simplified fulfillment by optimizing how orders are aggregated, picked and shipped. While there will always be situations in which warehouse workers must be involved in order preparation, SCALE’s ability to streamline the process reduces the time from order to delivery while simultaneously ensuring order accuracy.
- Reduced transportation costs via optimized routing, rate shopping and carrier selection. In addition to the cost reduction, these features also allow you to ensure quick deliveries and avoid product degradation issues.
Across the globe, e-grocers of all sizes and levels of e-commerce maturity are using SCALE to prepare them for the next phase of growth. With the comprehensive control and visibility provided by the platform, these companies are primed to triumph over the industry’s most challenging supply chain hurdles.
- The complexity of online grocery orders can impact the bottom line
- Homegrown WMS and order fulfillment solutions limit growth
- Manhattan SCALE unifies warehouse, labor, supply chain and transportation