A recent study by the World Retail Congress discovered that supermarkets adopting this approach increased sales by upwards of 10-20% as recently as 2014; not only increasing operational efficiency, but profits, too.
In attempts to disrupt traditional best practices, grocery companies are becoming adept in utilizing the omnichannel approach. The ‘omnichannel’ can best be described as a multichannel sales approach that provides a seamless customer sales experience, regardless of the shopping channel through which goods are purchased – mobile internet devices, computers, stores, television, catalogue, etc.
As online grocery ordering and delivery becomes more prevalent, the omnichannel approach will be a key driver in the success of these platforms, while also improving the bottom-line. A recent study by the World Retail Congress discovered that supermarkets adopting this approach increased sales by upwards of 10-20% as recently as 2014; not only increasing operational efficiency, but profits, too.
However, the e-commerce grocery category is more challenging comparatively to other retail markets and face unique challenges such as:
- More items per order than typical online transactions
- High customer expectations for short order to delivery cycles
- Consistent temperatures that contribute to product quality for fresh deliveries
While FDA regulations pertaining to FSMA are stricter than ever, it has never been more important for food safety technology to be integrated within the adoption of omnichannel grocery practices. The likes of digitalized checklist management, temperature control, and traceability will have a tremendous impact on continued growth and service within the marketplace.
Specific areas food safety technology improves the grocery omni are within:
- Customer Service
- Operational Efficiencies
- Task Management
In the UK alone, 37% of UK retailers saw an uptick in consumer complaints while adopting omni practices. The complaints came from being overextended while customer orders outpaced order fulfillment. Singapore web-based grocery start-up, RedMart, experienced similar issues before adopting JDA grocery technology. President, Vikram Rupani states, “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.”
Retailers must maximize service while simultaneously minimizing inventory to mitigate shrink risk. They must ensure they have a responsive fulfillment and replenishment infrastructure that will allow this to be a success. By better managing the back-end infrastructure, retailers can produce a better front-end product while fulfilling customer expectations.