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Following a trial, Sainsbury’s is to roll out 1 hour delivery in parts of London.

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Sainsbury's has launched a trial 30 minute click & collect service using its Chop Chop app. In so doing it becomes the first UK grocer to offer a sub one hour collection option.

Extending Chop Chop

The trial will operate from the retailer's Pimlico store and enable customers to collect up to 25 items 30 minutes after placing their order. The service is being offered free of charge with customers able to collect their order by showing their order number at the store's Chop Chop desk. The service adds a new dimension to Sainsbury's existing Chop Chop one hour cycle courier delivery service which launched in June last year.

Greater flexibility

Commenting on the launch, Clodagh Moriarty, Director of Online at Sainsbury’s said: “We want to offer a customer experience that is differentiated in terms of price but also in terms of service, with complete customer autonomy and excellent flexibility. The way customers are shopping is changing as they look for faster and more convenient options and we want to continue leading the way in giving them the services they need to shop wherever and whenever they want. We were the first UK supermarket to introduce one-hour delivery last year and we’re now delighted to be the first to trial a 30 minute Click & Collect service. It’s an exciting time for the business and we hope to see a positive response from our shoppers.”

Drive for faster fulfilment

Sainsbury's move comes as Amazon Prime Now offers one hour delivery from more locations and scales up its capabilities in food retailing. It also follows the June launch of Tesco Now which provides a one hour delivery service from stores in London for flat rate £7.99 fee (or delivery within two hours for £5.99). Tesco is also soon to complete the roll out of same day delivery nationwide. Sainsbury's, meanwhile, is stepping up communication of Argos's Fast Track delivery option which allows customers near instant collection of online orders from its non-food offer.

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Analyst opinion: Following the announcement of GS1’s Digital DNA programme charter, Chris considers how data management has changed, and what opportunities can be created from sharing data.

Not so long ago, common supply chain tasks, like placing an order with a supplier, involved a pen, a piece of paper and a fax machine. How times have changed! Our transition into the digital age, supported by advances in software, hardware and access to the internet, means we increasingly rely on the generation and exchange of data to function normally in both our personal and working lives.

There are many statistics bandied about that describe just how much data we now generate. I won’t quote any one in particular, but suffice to say, it’s a huge amount and it’s growing all the time. But using this mountain of data is a challenge, which is made more difficult by the lack of a consistent approach to terminology and formatting. This is particularly true within the grocery industry in the UK, which lags behind other regions of the world in this area.

While the industry has embraced data to inform and improve processes, the ways in which it’s generated, organised and stored are far from uniform. As a result, data quality differs vastly from business to business, making the sharing and use of data to add value a real challenge. While the UK has a well-developed grocery sector, many businesses operating within this market still rely on legacy systems. Investing in, and implementing replacements in what is a hyper competitive environment has not been top of the priority list for many. However, things may be about to change…

This week, GS1, the global supply chain standards organisation, issued its Digital DNA programme charter, signed by some of the industry’s leading retailers and manufacturers. In signing the charter, these businesses have announced their commitment to moving to a single industry standard for data management and exchange. GS1 has stated that “the 12 companies – Co-op, Itsu, L’Oréal, Mondelez, Nestlé, Ocado, PepsiCo, P&G, Sainsbury’s, Tesco, Unilever and Waitrose – recognise that the UK grocery industry could save over £200m in costs and lost sales through the development of an industry-wide solution that delivers improved data quality.”

The size of the prize is clearly significant, but beyond the everyday operational benefits, the impact of a commitment like this could be much greater. Using the same terminology and working from common datasets can only improve transparency and efficiency between trading partners. Sharing data seamlessly in a standard format will make uncovering opportunities far easier and this should encourage greater levels of collaboration. There’s clearly work to be done, but the potential is huge and I’m very interested to see how things develop. The digital DNA programme will enter operational use later in 2017 with the full industry launch in 2018.

Sainsbury's is looking for new sites for its same day delivery trial, following an encouraging response at its initial 30 sites according to reports in The Grocer.

Accelerating order fulfilment

The service was launched in three stores in the South-East in July 2016 and expanded to 30 stores across the country by the end of December. Customers in the catchment of these stores can order groceries for home delivery in the space of six hours for a fee of £5-£7 or choose click & collect within four hours for a £2 charge. This compares to a fee of £1-7 for standard delivery lead times or free click & collect. Offering accelerated order fulfilment will help Sainsbury's win the loyalty of customers wanting speedy delivery. The move comes as Tesco and Asda are also offering customers shorter lead times on delivery and follows the launch of Amazon Fresh.

Strengthening the online offer

The rollout fits into a broader ramping up if investment in Sainsbury's online business. The retailer aims to have rolled out Click & Collect to 200 stores by the end of March and now benefits from a dedicated fulfilment centre in Bow East London. Sainsbury's is also experimenting with its Chop Chop cycle courier service that makes deliveries within an hour of ordering. These initiative helped strengthen online sales growth to 9% in Q3.

Looking for more on Sainsbury's?

Look no further: our Sainsbury's hub page covers all the latest news and developments for the retailer's supply chain, and our Sainsbury's supply chain snapshot will give you an essential summary of supply chain priorities, latest network developments and other key statistics for Sainsbury's.

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