Fight for your fridge and the ultra-fast grocery boom –

Wherever you look in the world right now, ultra-fast grocery delivery is booming. According to IGDThe fast – paced commercial sector in the UK is currently worth £ 1.4 billion, with the potential to more than double to £ 3.3 billion.

So with the rapid increase and investment in space that until recently was not even on the radar for many, what does this mean for wider retail and supply chains in the coming years? Examines Alex MacPherson, Director of Consultancy and Account Management Solutions at Manhattan Associates.

The 15 minute craze shop

We may be living in an era of demand, but when it came to grocery shopping missions, until recently, it was weekly made food store online. The IS addition The grocery store was still an analogue experience. With that, not only did the pandemic ‘s unprecedented disruption accelerate the adoption of online grocery, but it also created a whole new channel – the digitization of the good old corner shop experience.

The superfast grocery delivery companies – like Gorillas, GoPuff, Getir and Zapp – have all come in with flaming guns, boldly debuting their brands and taking the customer experience to new heights, it seems. they are unfazed by crowded, low-to-no people. -margin nature of space.

These fast delivery platforms are essentially acting as 21st a centenary version of a British institution, the corner shop, serving these convenience / crisis shopping missions.

Shoppers who need one or two ingredients for tonight’s dinner, who have worn nappies or beer, or who may be quarantined and struggling to find a suitable slot with one of the big grocers they can be. God-sent.

These new barriers are challenging the status quo and redefining presence. While a niche, it is extremely relevant in the current climate.

Fast compliance

Central to the ability to deliver goods extremely fast (groceries or otherwise), is the idea of ​​hyperlocal, delivery-only micro-fulfillment centers, known as ‘dark stores’ in the supply chain and logistics spaces.

Primarily found in groceries and vertical consumer goods packaging (to date), microcompliance uses automated processes and robotics to retrieve items from a compact storage center for more efficient picking.

Moving goods and the supply chain closer to the consumer means that an increasing number of retailers can now deliver and offer more flexible and faster delivery options within a specific radius of a ‘dark shop’ through a ‘dark warehouse’, by move goods and the supply chain closer to the consumer, where consumers were once shop – oriented. delivery robots or even ‘last mile’ automated delivery robots – a much greener alternative to jumping in a car to buy a pint of milk.

Micro-compliance is a ‘dark shop’ for a practical technology-based approach and strategic shift towards moving the supply chain closer to the consumer, and in the process of meeting the flexibility, speed and demand levels of the customer experience at many consumers (especially urban). today.

As brands around the globe begin to look at what the post-pandemic retail landscape looks like now, broader themes such as business agility and moving the supply chain closer to consumers are likely to be even more prominent.

Because micro-compliance centers and ‘dark shops’ meet these two key business requirements, technologies such as smart warehouse management and automation, as well as the platforms and software that allow smarter human-machine integration (in the new environments) this), probable success.

As the pandemic’s memory begins to deteriorate in the near future, and the current market forces that caused ultra – fast compliance also decline, technological advances and business rationale are likely to remain. to address these challenges. Just as ecommerce, omnichannel customer experience, smartphones and mobile internet have become commonplace in our daily lives, putting the jack back in the box will be challenging when it comes to ‘fast commerce’.

Conclusion

Business agility was fundamental to business success during 2020 and 2021. While many people are predicting the future role of the store, stores as we know them need to be more flexible and fast paced. to manage. change for consumers than ever before, no matter what the next transformational challenge.

While fast commerce is likely to remain a niche item in the online grocery channel, this does not mean that it must be ignored, as it has far – reaching implications for retail supply chains in general.

Whether it is the practical processes of micro-compliance (such as automation and integration of man and machine), transport modeling for the ‘last mile’ or the wider concept of moving supply chains closer to consumers, the impact of commercialization may fast to be there. felt far ahead, far beyond its 2022 operations milestone.

Fight for your fridge and the ultra-fast grocery boom –

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