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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.

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

Consumer Expectations

• Can you ship to my house / apartment / condo / office………

• Free shipping?

• Choices / options

• I want it now!

• Good quality

• Lowest prices

4/20/2016

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

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)

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

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

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

E-Commerce Solutions – Retail Store Retail store

• Paper

• Voice Picking

• Wrist mounted computer device

• Blue tooth PDA or mobile phone

E-Commerce Solutions – Retail Store Retail Store Automation

• Order consolidation buffer

• Product dispenser

• Automatic shelf replenishment system

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

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

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

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

Questions?

For More Information:

Speaker #1 email: sean.ofarrell@dematic.com

Website: www.dematic.com

Or visit MODEX 2016 Booth 3047

Speaker #2 email: tswov@retrotech.com

website: www.retrotech.com

Or visit MODEX 2016 Booth 2447

DEMATIC l We Optimize Your Supply Chain www.dematic.us