The document discusses the competitive landscape of omnichannel fulfillment in the grocery industry, highlighting significant growth in online grocery sales and evolving customer expectations. It outlines key trends such as buy online, pickup anywhere, and the integration of technology like augmented reality and the Internet of Things to enhance the shopping experience. Concluding remarks emphasize the necessity for businesses to adopt agile strategies to meet customer demands and improve last-mile delivery capabilities.

1. The Fight for
Competitive Advantage in
Omnichannel Fulfillment
Power Session 4B: 9:30 a.m. - 10:30 a.m.
Ali Bouhouch

2. The Food Value Chain – From Farm to Fork
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ChainLink Research. “Cold Chain: A Story of Integration.” Web. November 1, 2011.
http://www.chainlinkresearch.com/research/detail.cfm?guid=5119959C-3048-79ED-99F1-3533EE04E8AA

3. Are You Prepared to Deliver a True Omnichannel Experience?
3
Home
Delivery

4. Grocery Industry Trends
• Tremendous growth anticipated
─ New Entrants, Stakeholders, and shifting
business models (Amazon Fresh, Google
Express, Uber, etc.)
─ Greater convenience and access
• Customer expectations influenced by current
modern retail experiences
• Highest future growth channel for grocery is
online
─ 3.3% of total US grocery spending is
online
─ BI Intelligence estimates online grocery
sales will grow at a CAGR of 21.1%
reaching nearly $18b by 2018
─ 25% of US adults have bought hard to
find specialty food and beverages online
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Bricks Meets Clicks. “What’s ahead for online grocer?” Web. October 10, 2014.
http://www.brickmeetsclick.com/what-is-ahead-for-online-grocery--updated-growth-forecast-and-implications
Business Insider. “How E-Commerce Is Finally Disrupting The $600 Billion-A-Year Grocery Industry” Web. September, 2014.
http://www.businessinsider.com/e-commerce-disrupting-600-billion-grocery-industry-2014-8#ixzz3HNX2GnUR

5. Omnichannel Experience – Tesco Example
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6. Hot Omnichannel Trends
• Buy online, pickup anywhere
• Ship from store or supplier
• Mobile “In-Store” mode
• Endless aisle (everything, everywhere)
• Augmented reality shopping (using mobile)
• Internet of Things (appliances placing orders)
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7. Buy online, pickup anywhere – Tesco example
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8. Free in-store pickup at 7/11 or Staples stores for Amazon online orders
8
Buy online, pickup anywhere – Amazon example

9. Ship from Store or Supplier
9
Home
Delivery
Ship from Store
Ship from Suppliers

10. Mobile “In-Store” Mode – Assisted Shopping
10
Real-time store
navigation
Product info inquiry
Get digital coupon
by scanning
barcode
Receive promotion
information
Think With Google. “New Research Shows How Digital Connects Shoppers with Local Stores” Web. October, 2014.
https://www.thinkwithgoogle.com/articles/how-digital-connects-shoppers-to-local-stores.html

11. Endless Aisle (Everything, Everywhere)
11
• Shared
Inventory
• All items are
available to all
channels
• No channel
specific
inventory
• Fulfill online
orders from
stores
• Missing items
in store are
delivered to
home
• Deliver new
items directly
from suppliers

12. Augmented Reality Shopping (using mobile and wearables)
• Use mobile device to
provide augmented
data for
─ Pricing
─ Offers
─ Ingredients
─ Nutrition
─ Recipes
─ Alternatives
• Wearables are
coming soon
─ Google Glass
─ Apple Watch
─ Smart Cart
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13. Low on Milk?
Order Automatically
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Internet of Things (Appliances Placing Orders)

14. Concluding Remarks
• Understand your role in fulfilling for omnichannel demand
• Build a strategy around your position in the value chain
• Contribute to better visibility, agility and responsiveness
• Be ready to participate in last-mile delivery
─ Smaller shipments
─ On-demand shipping
─ Shipping direct to the consumer
• Start manual, automate as you go
• Stay focused on the Customer Experience
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15. Thank You
15
Ali Bouhouch
SVP Client Service
abouhouch@griddynamics.com
(925) 331-7058

16. Grocery of The Future, Big Picture
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Get seasonal
assortment
news & personal
deals
Shop grocery
anywhere on
mobile phone and
tablet, create
shopping lists
Collaborative
family and
social shopping
Submit orders for
to-door delivery
or at-store pick
up
Home delivery
Shop in store with
mobile phone as an
assistant: in store
navigation, product
info, shopping lists
Get store
assortment news
and
personalized
promotions
Shop by recipes
and meal ideas
Shop “interesting”
products personally
Get “boring” items
pre-packaged on
checkout
Ensure freshness, decrease
waste, and manage inventory
more efficiently by engaging
customers to pre-order
Manage inventory and
personalized promotions with
robust data analytics
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