89% of Grocers Believe Optimizing Fulfillment is Key to Improving Digital Profitability
“Recent research by Incisiv, conducted in collaboration with The Food Industry Association (FMI) and in partnership with RELEX, highlights the importance of strategic fulfillment in achieving digital profitability.
With 69% of grocery sales in 2023 being digitally influenced, the grocery shopping experience has now become firmly omnichannel. However, despite this digital boom, profitability remains a significant challenge, with a staggering $23 billion lost in digital sales due to unavailable or unsubstituted items in 2022.
The report, Increasing Online Profitability Through Strategic Fulfillment provides a guide for grocers to navigate the complex landscape of strategic fulfillment, identify opportunities for growth, and overcome challenges to thrive in an increasingly competitive market.
“Digital offers immense potential for growth. However, for that growth to be profitable, grocers must improve their fulfillment operations considerably. Grocers can unlock the opportunities presented by optimizing availability, enacting more strategic fulfillment methods and harnessing the power of AI to improve their margins,” said Gaurav Pant, Chief Insights Officer of Incisiv.
Key takeaways from the report include:
FMI Vice President, Industry Relations, Doug Baker said: “Technology is enhancing customer loyalty and retention; Since 2019, among the wide range of applications we see in our operations analyses is that most food retailers have been experimenting with new technologies to improve customer experience and efficiency, relieve margin pressures, shore up labor limitations, and improve e-commerce capabilities. Key strategies have included shopper loyalty programs and a checkout experience focused on speed that is frictionless.”
“As the grocery industry continues to adapt to the omnichannel landscape, it is imperative they evolve their strategic fulfillment strategies to align with consumer expectations. Unifying processes and driving efficiencies related to strategic fulfillment, including forecasts and order recommendations, and pricing and promotion strategies will all help to improve profitability while ensuring consumer satisfaction,” said Marc Koehler, director of product strategy, RELEX Solutions.
About Incisiv
Incisiv is a peer-to-peer executive network and industry insights firm for consumer industry executives navigating digital disruption. Incisiv offers curated executive learning, digital maturity benchmarks, and prescriptive transformation insights to clients across the consumer and technology industry spectrum.
www.incisiv.com
About FMI
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier, and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain – from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services – to amplify the collective work of the industry. www.fmi.org
About RELEX
RELEX Solutions helps retailers and consumer brands drive profitable growth across all sales and distribution channels by maximizing customer satisfaction and minimizing operative costs. Our market-leading, unified supply chain and retail planning platform helps retailers and consumer goods companies align and optimize demand, merchandise, supply chain, and operations planning across the end-to-end value chain. We drive record-high product availability, increased sales, improved sustainability, and the best return on investment in inventory, space, workforce, and capacity. Leading brands like Dollar Tree and Family Dollar, Stokke, Rite Aid, Sprouts Farmers Market, AutoZone, and PetSmart trust RELEX to optimize their supply chain and retail planning. Go to relexsolutions.com for more.”
*This article is excerpted from perishablenews.com website, published July 21, 2023
