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Global manufacturers Unilever and Nestlé have become the first suppliers involved in GS1 UK’s productDNA, a new data service.

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Catalan distribution group, including Bon Preu, Esclat and EsclatOil, is to strengthen its online grocery channel through a partnership with Ocado.

New ecommerce website

With the alliance, the group will launch a new ecommerce website and app as a short-term priority, possibly later in 2018. New features include searching for favourites or allergens and allowing customers to modify their basket just hours before collection. Currently the product assortment online exceeds 11,000 items.

Expanding click and collect service

Bon Preu’s click and collect service started in 2012, allowing customers to collect their groceries at certain stores. The number of click and collect points will be expanded across Catalonia in light of the partnership. The move highlights the group’s commitment to omnichannel retailing, and digital transformation.

Bon Preu's click and collect service. Source: Bon Preu

Walmart’s Jet.com subsidiary is developing a new fulfilment centre in the Bronx which will enable it to offer same-day and next-day delivery.

Working with Parcel for same-day delivery

Opening in the fall, the fulfilment centre will enable Jet.com to offer same-day delivery for fresh and grocery products, consumables and non-food items. Jet will partner with Parcel, a last-mile delivery company specialising in fresh and non-food deliveries in New York City which Walmart acquired last year. The company has built a technology platform from the ground up to automate operations and provide clients and customers with live updates throughout the delivery process.

Source: Jet.com

Meeting demand in urban locations

Customer expectations around fast delivery are continually being reset, with the ability to offer last-minute ordering with same-day delivery becoming a must-have in highly urban areas. Amazon has been setting the pace in this area with its Prime Now service. This year, Target has started to offer same-day delivery for in-store purchases in New York, while online grocery specialist, Fresh Direct, launched FoodKick in the New York market in 2016, focusing on one-hour delivery of fresh foods, meals and essential items.

Focusing on urban, affluent customers

Over the last year, Jet.com has evolved to focus its efforts on the urban, affluent customer. This has seen it narrow its category focus and the range of products available through the service. This approach makes Jet.com more attractive to brands and enables it to attract different suppliers than Walmart.com. Improving its same-day delivery capabilities will also help Jet.com with its goal of growing its food business. The brand is particularly important for Walmart in New York, one of the few major cities where it does not operate stores.

Amazon has launched Delivery Service Partners, a new programme that allows entrepreneurs to start their own package delivery business under the Amazon brand.

This is the latest of Amazon's initiatives to ensure fast and efficient delivery for its customers.

Representing the Amazon brand

Each Delivery Service Partner is vetted by Amazon, and is expected to represent the Amazon brand.

Partners will lease Prime-branded vehicles from Amazon, delivery units will collect parcels from Amazon stations, and drivers will be expected to wear an Amazon uniform.

The entrepreneurs will, however, be in charge of recruiting and hiring drivers.

Amazon will also offer discounts for costs incurred to run the business.

Source: Amazon

Scaling cost effectively

This new service brings more delivery costs and customer service under Amazon's control, as it does not need to rely on external partners.

Dave Clark, senior vice president of Amazon Worldwide Operations, said "This is all about scaling cost effectively. We are going to have to meet this [e-commerce] growth, and it's outpacing the growth of our core providers. We use everything in order to meet our scale and meet our needs".

Furthermore, the programme will enable many small businesses to get started. Each Delivery Service Partner can start a business with as little as a $10,000 investment.

This would be particularly attractive to experienced delivery drivers, such as those working for established package delivery companies. This has the potential to disrupt their businesses, and in turn, their clients.

Ensuring fast delivery

Delivery Service Partners is the latest strategy from Amazon to ensure fast delivery for its customers. The programme sits alongside Amazon Flex, an initiative that enables non-professional delivery drivers to make deliveries on behalf of Amazon.

Initiatives like these will help Amazon overcome the financial challenges of delivering the ‘last mile’ to shoppers chosen destinations, whilst offering a solution to meet growing shopper demand.

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Amazon has launched Delivery Service Partners, a new programme that allows entrepreneurs to start their own package delivery business under the Amazon brand.
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Target is in the midst of a $7bn investment programme for its stores and supply chain. In this case study, we look at the retailer’s supply chain investments and how they’re driving growth for the business.

Explore how implementing a sales and operational planning (S&OP) process can improve forecast accuracy, reduce costs and transform how a business runs.

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