battle of the ecommerce strategiescdn.modexshow.com/seminars/assets-2016/987.pdf · • pro and...
TRANSCRIPT
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NOTE: The use of
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Presented by:
Sean O’Farrell, Dematic
Thomas Swovick, Retrotech
Battle of the eCommerce Strategies
© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
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Agenda • Consumer Expectations
• Grocery Industry eCommerce – Three models
• Click and collect
• Drive
• Home delivery (dark store)
• Pro and cons / applicability
– Why Click & Collect
– Drive
– Home Delivery (Dark store)
• Logistics for Order Fulfillment
– Retail Store vs.
– Dedicated Facility vs.
– Shared inventory DC
• eCommerce Solutions for the Retail Store
– Simple – Voice and / or handheld
– Automation in the Retail store
• eCommerce Solutions for the Distribution Center
– Dark Store
– Automation in the DC
• Questions & Answers
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Consumer Expectations
• Can you ship to my house / apartment / condo / office………
• Free shipping?
• Choices / options
• I want it now!
• Good quality
• Lowest prices
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4/20/2016
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Grocery Industry eCommerce
1. Click & Collect
• Retail store
• Additional items
• Personal preference of shopping
2. Drive
• Stay in car
• PUP Pick-up-Points
3. Home Delivery
• Window delivery time
• Access to home or locker
• Willing to pay more
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Why Click & Collect In-store benefits
• Time savings for customer
• Order as needed
• Pick up window
• Pack out
In-store challenges
• Compete with retail store shopper
• Space & Stock availability
• Wrong product picked
• Trust
• Long lines to collect the purchase
Supply Chain
• Smaller, more frequent orders
• Increased labor costs
• Freshness
• Cycle time (receipt of order to arrival)
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Why Drive Drive Benefits
• Stay in car
• Place orders around the clock
• Groceries loaded into car
Challenges
• Compete with retail store shopper
• Space available on lot
• Trust
• Rush hour
Supply Chain
• Smaller, more frequent orders
• SKU proliferation
• Labor and space utilization
• Costs
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Why Home Delivery Home Delivery Benefits
• Transportation savings
• Delivery window
Challenges
• Transportation costs
• Enough volume to be profitable
• SKU offering
• Multiple temperatures
• Security -
Supply Chain
• Transportation costs
• Freshness dating
• FSMA – food safety
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Strategies for Order Fulfillment Retail Store
• Duplicate inventory
• Back room storage
• Separate order holding area
• Multiple temps
Dedicated Fulfillment
• Compete with retail store shopper
• Space availability
• Rush hour
• Trust
Shared inventory DC
• Personalization
• On the way
• Maintain / grow market share
• Value added service
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E-Commerce Solutions – Retail Store Retail store
• Paper
• Voice Picking
• Wrist mounted computer device
• Blue tooth PDA or mobile phone
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E-Commerce Solutions – Retail Store Retail Store Automation
• Order consolidation buffer
• Product dispenser
• Automatic shelf replenishment system
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E-Commerce Solutions – Dark Store
Dark Store
• Voice Picking
• Cart Picking
• Wrist mounted computer device
• Light directed Put / Pick
• ASRS – mini load, unit load, shuttle
• Order Consolidation Buffer
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E-Commerce Solutions - DC
Distribution Center
• Voice Picking
• Cart Picking
• Hand held or wrist mounted computer device
• Light directed Put / Pick
• ASRS – mini load, unit load, shuttle
• Order Consolidation Buffer
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eCommerce Automation in the DC
Ambient Shuttle Order
Consolidation
Despatch / Shipping System
Chilled Zone Routing Pick
Chilled Shuttle Order
Consolidation
Empty Tote Buffer & Auto
Order Start
Ambient Zone Routing Grocery Pick Ambient Zone Routing Produce
and Bakery Pick
Frozen Cart Pick
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Productivity of Picking Methods Zone Pick: Cart Pick:
Impact: lots of walking with a cart of
customer totes. Turnaround time required
following pick
Impact: less walking in a zone, no
manual turnaround. Popular products
in center of zone, slower items
furthest. Walking between zones still
required
Goods to Person:
Impact: Minimal walking required on
station only and no turnaround. Takes
slow moving items from zones into the
multishuttle. Picking them through a
system where goods and also customer
totes arrive at the picker.
Productivity Index - 100 Productivity Index - 138 Productivity Index - 182
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For More Information:
Speaker #1 email: [email protected]
Website: www.dematic.com
Or visit MODEX 2016 Booth 3047
Speaker #2 email: [email protected]
website: www.retrotech.com
Or visit MODEX 2016 Booth 2447
DEMATIC l We Optimize Your Supply Chain www.dematic.us