Christmas Time. A time for living, a time for believing and, to misquote Cliff Richard, a time for delivery. But only if you put in the groundwork now.
We all know the importance for grocery and convenience retailers to offer a best-in-class delivery service during the festive period, says Graham Smith, Strategic Account Director at Gophr. The demand from customers is strong. Last Christmas 12.2% of the £11.7bn spent on food was online and therefore delivered, so the value is clear for all to see.
Delivery at Christmas is busy for big grocery. Everyone knows that. But this year, a coherent delivery strategy could make all the difference. Retailers are going to be battling business challenges from every direction. Cost of living, fuel prices and a fundamental shift at the top table, with Aldi replacing Morrisons in the Big Four. Plus who knows what is around the corner – the only thing that is predictable is the unpredictability of it all. However, getting your delivery offering right means that you have control. Which is why now is the time to start planning and rolling out your pilot delivery schemes. Better to iron out the creases now, than during the peak period.
Think Like A Scout And “Be Prepared”
Last year the demand for delivery was driven by behaviours and mindsets related to the pandemic. Most, if not all, grocery retailers were still operating an efficient delivery service as developed during lockdowns, making it easier to scale during busier times. In the past year though, demand outside of peak times has dipped slightly. But now that Christmas is coming back around, as a grocery retailer, you need to be prepared to run a scaled operation. Already we are seeing rapid delivery physical grocery stores opening, such as Deliveroo Hop, ahead of peak.
Your approach to delivery is no different to your approach for stock availability, sales, channels, and marketing. You get ready now for when the busier periods come. And if there is no strategy in place, you’ll struggle to capitalise in peak.
Any pilot scheme should start with stripping it back to the basics to determine what you are trying to achieve with delivery. Ask yourself some key questions: what level of speed do you want to offer? What level of service? And what’s your customer promise? The basics include the operational nuts and bolts too. How are you going to train your staff to pick and pack the goods? How will you hand over goods to your couriers?
Brace For Surge
Your logistics are just one part of the equation. You may be confident that your own house is in order, and that processes are in place to hand product over to your courier, but then what? Is your chosen courier prepared for the inevitable substantial increase? Do they know the answers to your questions on what level of service you want to offer? And can they offer it? Take same-day delivery. You may have pledged this to customers but if your delivery provider doesn’t deliver in time, then it is your reputation on the line.
Involve your provider from the beginning of the pilot process so that when there is a surge in orders, your reputation isn’t damaged because you’re left unable to deliver. You may need to bring in additional carriers for an increase in orders and could even consider using different couriers for same-day and overnight deliveries. This approach can make a huge difference when regulating the sheer volume of orders leaving warehouses and distribution centres in the lead-up to Christmas.
Last Minute Headaches
When we talk about the lead-up to Christmas, we really mean right up to the last minute. Modern life is busy, people are looking for deals and then suddenly Christmas is almost here and they haven’t got a Christmas Tree, let alone a turkey.
Last-minute shopping is a massive opportunity for grocery retailers, but for logistics managers, it is very much ‘The Nightmare Before Christmas’. This is why pilot periods in the quieter lead-up months are so important as preparation. In the actual lead-up though you can do a few things to manage the demand.
Encourage your customers to pre-order, giving you a clearer view of your pipeline and the chance to stagger deliveries and prepare your couriers for when it’s busy. In those final weeks, promote a limited range of key SKUs that are easy to ship (hampers for example!) to make the packing process a whole lot easier.
Finally, prioritise picking and packing for orders with tight deadlines. Let your fulfilment team know exactly what to pick and pack first. You can even schedule multiple courier collections daily to help manage the flow of orders leaving your facility.
Despite all the challenges and unpredictability that the grocery sector is facing, two things haven’t changed – customers still want convenience and delivery is one thing you can control (to some degree). All grocery retailers are facing the same problems, which is reassuring, but by offering a best-in-class delivery solution during a crucial peak period you can rise above these challenges.
You just need to get planning now.
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