Last-mile delivery has taken on a full revolution since the height of COVID-19. Innovation in ordering, shipping and delivery has proven to improve abilities that meet the everchanging expectations of consumers. Today, optimization technology, delivery options and software are growing and holding firm as pivotal pieces in the last-mile of grocery.
The worries and woes of infancy online shopping is a thing of the past. Today, even perishables can easily be accessed via grocery apps and online ordering platforms with the push of the button. Khalid Naim, co-founder and CEO of Onfleet, explains how businesses that position themselves at the forefront of the online grocery shopping and delivery market will offer customers unprecedented levels of visibility into real-time delivery status, including confirmation that the delivery is scheduled, when it has left for delivery and exactly when it arrives.
According to Phononic’s State of Online Grocery Shopping 2022 report, the majority (84%) of retailers see the need to provide this option for their customers today. As a result, Dana Krug, VP and general manager of the food and beverage division at Phononic, says “grocers are increasingly turning to automation tools—and even robots—to meet consumer demand and support physical stores, distribution centers and especially last-mile logistics.”
Last-mile delivery has taken on a full revolution since the height of COVID-19. Innovation in ordering, shipping and delivery has proven to improve abilities that meet the everchanging expectations of consumers. Today, optimization technology, delivery options and software are growing and holding firm as pivotal pieces in the last-mile of grocery.
TRENDS OF ONLINE GROCERY SHOPPING:
The worries and woes of infancy online shopping is a thing of the past. Today, even perishables can easily be accessed via grocery apps and online ordering platforms with the push of the button. Khalid Naim, co-founder and CEO of Onfleet, explains how businesses that position themselves at the forefront of the online grocery shopping and delivery market will offer customers unprecedented levels of visibility into real-time delivery status, including confirmation that the delivery is scheduled, when it has left for delivery and exactly when it arrives.
According to Phononic’s State of Online Grocery Shopping 2022 report, the majority (84%) of retailers see the need to provide this option for their customers today. As a result, Dana Krug, VP and general manager of the food and beverage division at Phononic, says “grocers are increasingly turning to automation tools—and even robots—to meet consumer demand and support physical stores, distribution centers and especially last-mile logistics.”
STATS
A 2022 McKinsey report says grocery e-commerce penetration is expected to more than double in the next three to five years, to an average of 23%.
According to a 2021 Harris Poll survey, 71% of Americans expect timely delivery of online purchases from retailers despite the supply chain issues and delays that are occurring.
OVERCOMING COLD CHALLENGES WITH TECHNOLOGY:
It’s clear that consumers expect faster and more convenient delivery options, pushing retailers and delivery services to invest in automation services. Of course, there are obstacles, specifically for perishables of cold and frozen foods. Krug explains that in some scenarios, automation technology is beneficial and can prove effective in the long term, however there are challenges to note with certain tech, like robots and other automation, that needs to be in a consistent temperature environment to operate properly— raising concerns for the use of this technology in the grocery fulfillment environment.
The key may lie in trial and-error to choose the technology that suits your needs the most— understanding that tech is not one-size-fits-all, and a McKinsey report finds that grocers need to define their operating models to fully harness their own capabilities while participating in third-party ecosystems to serve customers through different missions.
TYPES OF TECHNOLOGY ON THE RISE FOR LAST-MILE DELIVERY IN GROCERY INCLUDE:
ROUTE OPTIMIZATION SOFTWARE AND GPS TRACKING:
- Route optimization software minimizes travel time and fuel consumption while maximizing the number of deliveries per route.
- GPS tracking can allow for dual visibility, from both customers and delivery managers, to track the real-time location of delivery vehicles—increasing accuracy and reliability.
MOBILE APPS AND E-COMMERCE PLATFORMS:
- With the boom of delivery service apps, some retailers are no longer relying on third parties but often crafting their own for tracking, messaging and more.
AUTONOMOUS DELIVERY VEHICLES:
- Drones and self-driving vehicles are here with the ability to navigate through traffic and reach destinations without human intervention, creating a streamlined approach to last-mile grocery delivery, however challenges in volume and perishables remain.
IOT-ENABLED SENSORS:
- Internet of Things (IoT) sensors can be used to monitor various conditions during transit, such as temperature, humidity and shock—an upmost importance for perishable goods like groceries.
ROBOTICS AND CONTACTLESS SOLUTIONS:
- We’ve seen the strides robotics has made in picking and packing orders in fulfillment centers by increasing efficiency and reducing errors, but autonomous robots are also on the rise for delivering groceries directly to customer doorsteps.
- Contactless technologies, including QR codes and smart lockboxes complete deliveries without physical interaction between the customer and the delivery person, a rising request from consumers due to COVID-19 and is likely to remain a preferred option for customers.
CONCLUSION
The world we live in is a continuous evolution based on surrounding factors that dictate how we operate day to day. When it comes to grocery access, there’s always been expectations for growth from consumers but with the technology of 2024, expectations are becoming a reality. Researching, utilizing and expanding tech in last-mile grocery delivery shows increases in visibility and optimization practices moving forward.
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