Online Grocery Delivery Networks – Planning for the ‘New Normal’

Cold Chain Federation member The Supply Chain Consulting Group have developed (and recently implemented) operational tools to support delivery slot allocation for multi-temperature grocery deliveries, as well as maximising the amount of delivery slots available to on-line customers. The Supply Chain Consulting Group (SCCG) recently supported one of the UK’s top 10 Grocery Retailers in developing and implementing a bespoke delivery window planning tool for its home delivery business.

With a brief of ‘how do we provide more delivery options for our customers whilst minimising costs’ , SCCG developed and implemented the planning tool which selects the most appropriate store from which to pick the on-line orders based upon a combination of store specific picking costs, the level of demand in a post code region and vehicle fill.

The tool uses advanced optimisation techniques such as balancing the customer offer against associated delivery costs and determines the amount and type of vehicles to be based at each store and the suggested resource schedules for the home delivery operations.

The outputs of the tool are fed into the company’s e-comm platform to manage the delivery time slots offered to customers in a particular postcode area thus optimising the UK logistics network operations.

With DTC (Direct to Customer) delivery operations becoming the new normal under the COVID-19 crisis many retailers and wholesalers are rolling out Home Delivery networks that did not exist before March 2020.

With the surge in consumer demand and online shopping orders the goal at present for these new home delivery networks, as well as the more established existing ones, is to increase the number of delivery windows available. These planning tools, specifically tailored to a retailer’s requirements, support the decision-making process around this and other issues when planning home delivery timeslots and the overall optimisation of the delivery network.

If you need support in planning and / or optimising your Home Delivery operations  then call The Supply Chain Consulting Group on 01926 430 883 or email gideon.hillman@sccgltd.com to discuss your requirements.

www.sccgltd.com

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