Modern omnichannel distribution is complex at the best of times, thanks to the wealth of different journeys available to customers. But grocery retailers that sell fresh produce face added complexity: such products need to be kept under certain conditions and have expiry/use by dates which are not usually visible to a customer choosing a product on an e-commerce website. While retailers are well used to dealing with the upstream supply chain, any change to shopping habits introduce new challenges in the downstream supply chain.
What can you do to optimize the omnichannel distribution of fresh products to customers whose journeys may no longer involve a store visit? Here are five levers you can pull to optimize the omnichannel distribution of fresh products, to better meet customer demands, ensure food security and reduce food waste.
Increase product transparency and security, through full product traceability
Traceability is becoming a major strategic issue for the distribution of fresh products, beyond essential regulatory requirements. It has become a key opportunity to meet consumer expectations, offering a unique opportunity to stand out while framing your actions within a sustainable and responsible approach. It also helps you to improve inventory management and to increase your responsiveness to unforeseen events.
Successfully making it happen goes beyond simple logistics monitoring: it involves building a fluid and reliable information chain, connecting each stage from producer to consumer.
With the right solutions in place, your options include:- connecting the entire supply chain for global traceability
- more streamlined management of product recalls
- better communication with customers on the origin of products
- finding the balance between transparency and affordability
Increase customer faith in the reliability of your customer promise, through greater flexibility and communication
It goes without saying that ensuring reliable, impeccable customer experiences is another key issue for food distribution, especially when it comes to the moment a customer gets their order. From experiences ranging from Drive to Quick Commerce, from Click & Collect to home delivery, you are required to juggle exacting customer demands with operational constraints.
By optimizing your logistics capabilities and introducing real-time flexibility in your order orchestration processes, you can achieve excellent OTIF (On Time In Full) rates - regardless of how a customer order is collected.
With appropriate solutions, your options include:
- keeping your promise in line with your capabilities for optimal satisfaction
- communicating proactively with customers to avoid frustration
- provision of quality, tailored services
Avoid incomplete/inaccurately completed orders that dismay customers, by optimizing stock levels using data
For a customer doing their food shopping, just one product missing from the delivery or unavailable on the shelf can ruin a recipe, a plan, or both - causing real frustration. But reducing shortages and stock-outs presents logistical challenges due to the considerable costs incurred.
Accurate, real-time inventory information and management is key to minimizing stock shortages and limiting substitutions. By deploying a unified and advanced inventory management system to anticipate shortages and optimize flow management, you can both reduce waste and improve your competitiveness.
Such a system enables the following actions:
- centralized inventory management and improved reliability of product availability
- implementing targeted actions for continuous improvement
- intelligent suggestion of alternatives in the event of unavailable products
- directing the customer towards in-stock products through intelligent recommendations
Meet the strict standards associated with maintaining the cold chain, during the in-store preparation stage
Maintaining the viability of fresh and frozen products throughout their journey from producer to customer requires rigorous logistics - even (or especially) in the case of online orders. In particular, the preparation of orders in-store presents challenges for maintaining the cold chain.
But, by combining rigorous logistics organization, advanced order preparation tools and support for teams, you can meet the challenges of the cold chain, even in omnichannel environment
Consider:
- establishing suitable pick paths and storage areas
- training teams on cold chain issues
- using tools suitable for cold environments
Reduce food waste to meet customer expectations and improve profitability, by digitally monitoring use-by dates
In physical stores, staff on the shop floor minimize food waste and the associated financial impact by physically reviewing use-by dates and either employing simple stock rotation (putting the shortest dates at the front of the shelf) and/or discounting items that need to be sold or removed from sale.
A combination of optimized logistics practices and advanced inventory and order management tools enable you to take action against food waste by electronically monitoring the use-by date, with the flexibility to adapt to any different strategy you devise.
Initiatives to consider:
- Tracking expiry dates (UBD) electronically
- Enhanced online promotion of products with short shelf lives
- Setting up anti-waste packages
Summary
To read more about each of these levers in more detail, download and read our guide - “Five key levers to optimize the omnichannel distribution of fresh products” - now. And ask us: how can we help you meet your needs, in your unique set of circumstances.