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Farid Mheirs insight:
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Expansion through pilot with tech company Nuro. Walmart continues expanding its Grocery Pickup and Delivery service, currently with nearly 3,100 pickup locations, and deliveries from more than 1,600 stores.
Farid Mheirs insight:
WHY IT MATTERS: this is the Holy Grail of eCommerce: cheap, fast, reliable delivery of orders. Looks like grocery delivery, with its high frequency and large order size is the killer app as evidenced by these many tests by Walmart and - my own opinion - the acquisition of Whole Foods by Amazon.
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A leading Canadian grocer will pilot automated fulfillment of its buy-online-pickup-in-store (BOPIS) offering. Loblaw Inc. is building an automated picking facility to support its PC Express BOPIS service. Leveraging a hyperlocal fulfillment solution from Takeoff Technologies that functions in compact vertical spaces, Loblaw will launch the 12,000-sq.-ft. facility inside one of its GTA Real Canadian superstores in 2020.
Farid Mheirs insight:
WHY IT MATTERS: order fulfillment and delivery is the last remaining hurdle to eCommerce. Loblaws in Canada will pilot a micro-fulfillment solution from TakeOff that impressed me last year at Shoptalk. In short, they create an automated back-store where eCommerce orders are prepared with a huge amount of automation. The question remains whether the economics is better for micro-fulfillment or if centralized warehouse fulfillment with hub-and-spoke delivery is better suited for high volume / low margin eCommerce that grocery is about. Thus this "test" by Loblaws. Note that Sobeys has decided in favor of more centralized ocado-driven automated warehouse and Metro remains with the more traditional decentralized (and manual) store-based pick-pack-deliver process. Given the low volume of orders for online grocery in Canada I remain partisan of a store-based manual approach but the economics I got from TakeOff was promising. Below additional links if you want to read more about takeoff and ocado.
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Amazon’s business model for the device is to make deliveries within 7.5 miles (12 kilometers) from a company warehouse and to reach customers within 30 minutes. It can carry packages weighing as much as five pounds. More than 80% of packages sold by the retail behemoth are within that weight limit, Kimchi said.
Farid Mheirs insight:
WHY IT MATTERS: the final frontier in eCommerce is delivery to the home - the "last mile". Retailers have been great at solving technical issues around selling online and fulfilling orders cost effectively in large warehouses. Delivery remains plagued with slow and costly solutions that have not much changed since the FarWest postal delivery by horse-drawn carriage (think about it). This must change and we must apply automation, robotics and other tech to improve that and make it so that any retailer can send a parcel in few hours for as little as the cost of gas/electricity to get the parcel to the customer...
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As Amazon starts to roll out one-day shipping to its most loyal customers, it already has a logistics network spanning much of the U.S.
Farid Mheirs insight:
WHY IT MATTERS: delivery is the final frontier in eCommerce and Amazon has made it a lot more expensive for retailers to compete. Who else has a network of distribution centers like this? Walmart? Kroger and other large grocers? They should invest in marketplace technologies to let smaller retailers leverage their distribution network because otherwise, HOW ARE SMALL RETAILER GOING TO COMPETE AGAINST AMAZON? Once this battle is won by Amazon the last remaining blocker will be last-mile delivery and here UPS-FEDEX-USPS-CanadaPost-etc. are not making moves to cut down on costs so the land is open for a cost effective solution to emerge. Self driving cars? maybe? bringing back the milk runs? maybe. Any ideas or solutions that come to mind?
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Ready for unique insights into Canada’s e-commerce holiday landscape – and tips on how to make the most of this 2018 holiday season?
Farid Mheirs insight:
WHY IT MATTERS: holiday season starts with black friday / cyber monday. Companies need to prepare to get their logistics and delivery ready. Some useful insights in this shameless plug from Canada Post...!
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Proposed facility part of push to boost online grocery fulfillment. Walmart representative said the concept marks a different grocery pickup approach and would represent its largest pickup-only site. The location also would be Walmart’s first stand-alone, drive-up grocery facility in Illinois. The building would have no customer access and house 41,700 square feet of inventory space. Signs would direct customers driving through the lot to one of three canopied pickup bays, where they would park in a designated space and have their groceries loaded into their vehicle. Customers would order their groceries as usual via the Walmart Grocery app or website and select a pickup time in one-hour windows. Pickup trips and parking spots would be coordinated to avoid congestion.
Farid Mheirs insight:
WHY IT MATTERS: when Walmart gets into something, you should watch out. Here it seems they are exploring options for grocery fulfillment and delivery - as everyone is trying to figure out what will customer prefer and where to make money. But the solution feels like back to the future: the concept looks like a sears pickup counter from the old days! The article also mentions some delivery options being tested by Walmart including autonomous cars and crowdsourcing.
Tuhin Islam's curator insight,
October 25, 2018 1:57 AM
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Farid Mheirs insight:
WHY IT MATTERS: I tried this electric powered trailer at CES 2018 and it is truly amazing. Is this the missing piece in the delivery logistics nightmare of urban areas? Not sure but certainly fills a missing piece of the puzzle.
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The growth of last-mile delivery and demand for next- and same-day service is pushing logistics beyond traditional hub and spoke models to regional options, crowdsourcing, digital, and smart automation.
Farid Mheirs insight:
WHY IT MATTERS: delivery models are plenty and need to be expanded to reduce the cost of eCommerce deliveries.
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May 21, 2019 5:18 AM
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The last mile is seeing disruption from new business models that address customer demand for ever-faster delivery, as well as new technologies such as drones and autonomous ground vehicles.
Farid Mheirs insight:
WHY IT MATTERS: delivery is the last problem to solve to continue ecommerce growth. McKinsey explores the different delivery models for the last mile in this article.
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Amazon spent $21.7 billion on shipping in 2017.
Farid Mheirs insight:
WHY IT MATTERS: Amazon spends 14.2% of its net sales to fulfill orders and 12.2% to deliver them to consumers. Thus a quarter of the costs of products sold is allocated to logistical costs and this is the biggest hurdle to eCommerce wide adoption. Amazon and other pure plays have a number of key advantages over established brick-n-mortar retailers (no retail store costs, no store employees, etc.) but they have to battle with order preparation and delivery which traditional retailers delegate to their customers as they push their carts in the store aisle. In that context, recent announcement of Sobeys to leverage Ocado's automated warehouse technology or recent Amazon announcement to create a parcel delivery solution that competes with FedEx and UPS makes sense. Any retailer thinking of scaling its eCommerce operation should thus make sure that its business model is viable regarding fulfillment and shipping - all other elements of eCommerce are not an issue. - Amazon SWA service: http://fmcs.digital/blog/amazon-package-delivery-service-to-compete-with-fedex-and-ups-swa-ecommerce-disruption-retailapocalypse/ - Sobeys Ocado partnership: http://fmcs.digital/blog/u-k-s-ocado-taps-into-canadas-online-grocery-market-with-sobeys-tie-up-is-canada-mature-enough-to-have-automated-grocery-fulfillment-centers-ecommerce-robots/ - Ocado's technology: http://fmcs.digital/blog/video-shows-ocado-warehouse-technology-that-sobeys-has-acquired-to-prepare-grocery-orders-is-based-on-an-army-of-small-robots-working-on-3d-hive/
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An Uncertain Future: New Entrants In The #Food #Delivery Space Decline As Existing Startups Struggle
Maple's acquisition and Munchery's recapitalization highlight challenges in food delivery, with fewer fundings, increased M&A activity, and some companies ceasing operation.
Farid Mheirs insight:
WHY THIS IS IMPORTANT The first question a good friend of mine always asks when I come to her with this great new idea (and it happens more often than not) is: "how are you going to make money?". And she is right: if the business model is not there, then no matter how much funding you get at some point in time, you will run out and will have to close. Simple. But frustrating for an entrepreneur to hear because my ideas are so great...! That being said, I am old enough to remember the dotcom bust in 2000 and the various same-day delivery outfits that folded. Because they did not have a viable business model. So it may seem that the same has repeated here with one difference: the market is much larger than in 2000. Thus there may be some niche markets or geo that provide sufficient margins to make this a money making business. All others, see you next time. I wrote about possible doom of same day delivery in the past so you can verify that I am not just saying in retrospect but that I called the shot years ago (earliest post is in 2013). - first warning in 2013: http://sco.lt/6nkd4z - same day delivery: http://www.scoop.it/t/digital-transformation-of-businesses?q=same+day+delivery - food delivery: http://sco.lt/8tvFnl - same day not good, next day is great: http://sco.lt/4wpmQT - google same day not a great idea: http://sco.lt/67V5iz
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The Internet of Things, artificial intelligence, droid delivery systems, mobile wallets and in-store gardens should be on every grocer’s radar in the year ahead.
Farid Mheirs insight:
WHY THIS IS IMPORTANT WE always think of grocery as non technical and very hands-on, touchy-feely. This is becoming less and less so, a testament of the profound impact that digital technologies are having in our society at large.
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Unleash the bots! Automation has emerged as a critical issue in the US following a 2016 election that focused largely on jobs and plans to save them. Though a significant amount of attention has been directed towards autonomous driving as a potential job killer, specifically for long-haul trucking, delivery robots appear poised to go mainstream much sooner.
Farid Mheirs insight:
WHY THIS IS IMPORTANT We think of robots as fixed machines that assemble cars. However, with the advances in autonomous driving we may see an explosion of delivery robots. We have seen experiments with the use of drones to deliver products (Amazon and others) and now we are seeing self driving robots appear on the streets as it is much easier to get permits for those than it is for flying objects that can crash and hurt people. This is important because delivery remains the Achille's heel of eCommerce (slow, expensive): whoever cracks this problem and comes up with a low cost and economical solution will make a killing.
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With the recent announcement of Amazon Flex and rumblings about Uber expanding into delivery, all eyes are looking at the category, wondering who will win?
Farid Mheirs insight:
Some interesting nuggets in this article: - pareto applies: 97% of eCommerce sales (295B$ of 304B$) come from 500 retailers only - shipping is marketing: Amazon recognized that free 2-day shipping for Prime customers makes for a fabulous customer acquisition tool, therefore it considers shipping a marketing cost. Plus you'll read about all the different shipping services available today.
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Amazon's drive for global domination took on a new dimension today with the news that the world's largest online retailer now owns a day of the week.
Farid Mheirs insight:
Very cool piece on another digital flip, or how digital is transforming an industry. In this case, delivery services. The US post office - like all other post office service in the world - has seen shrinking volume of letters, mostly due to the prevalence of email in today's world. What if this marks the start of subsidized parcel delivery? As it was for letters, we could see this mark the beginning of an affordable parcel delivery, even in remote areas of the country. In the US it would be good. In Canada, it would be great and is pretty much essential, as the cost to deliver packages is astronomical. Also consider reading this piece in the Washington Post where they rightfully point out that this use of a government body by a private sector company is something relatively new they label "reverse contracting". Amazon’s brilliant plan to rescue the Postal Service and disrupt the shipping industry
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Farid Mheirs insight:
No surprise: customers are not willing to pay for delivery and they don't care much about same-day delivery. What is interesting is the analysis that this may provide an edge to traditional retailers, as they already have a network of stores close to where their customers are. Booz adequately stresses the need for retailers to transform their business in order to offer order delivery. The changes are profound as they impact not only technology but processes and people as well, which rarely like change... I believe Booz may have forgotten to mention that order pickup in stores may actually provide a better alternative than delivery does. That being said, the transform is as important for pickup as it is for delivery. Moreover, the analysis misses one key element I believe: delivery (or pickup) adds costs that traditional retailers did not have before online shopping. That places them at cost disadvantage over online pure plays (even if those pure plays open distribution centers, as they will target lower cost facilities that are perfectly suited for delivery or pickup).
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With the Google Maps API, you can build powerful applications that track assets, alert based on geofences, and geolocate devices, all delivered through the familiar Google Maps interface. Find out how DHL streamlines their package delivery process using the Google Maps API.
Farid Mheirs insight:
If it is good enough for DHL to track its parcels and deliveries, or for Swiss railways to show the positions of their train in realtime, then why would it not be good enough for
In fact, any business that needs to track, inventory or display assets on a map must absolutely look into the google maps API and other solutions.
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Everyone wants to know what Google Glass is good for. I've figured it out: It's the killer app for your car.
Farid Mheirs insight:
I think of delivery services but also of sales reps, and how glass could transform their daily lives. All the technologies have been there for a while - GPS, cell phone, live traffic feeds, detailed maps - but what glass does is change the proximity, from something that you have - in-car garmin GPS - or that you carry - Android cell phone - to something that you constantly wear and have in front of your eyes - litterally.
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Self-driving cars, computerized glass, search, mobile phones, and... local delivery?
Farid Mheirs insight:
Also read Michael Elling comment and look back at my previous post which basically said that customers do not want same-day delivery. That being said, there may be other good reasons why Google would like to enter same-day delivery: google self-driving cars. Google has a unique technology that can totally disrupt same-day deliveries by putting self-driving delivery vans on the streets. With those the economic model of same-day may become profitable. Moreover, Google may want to partner with local delivery firms, providing them with the infrastructure - Internet service plus self-driving tech - and let them go their way. They remain, after all, an engineering company.
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Athens NEWS Judge: GPS tracking evidence can be used in burglary case Athens NEWS The Athens County Prosecutor's office claims that a Nelsonville man who's charged with a string of burglaries made the rather serious mistake of committing them while...
Farid Mheirs insight:
This guys was wearing an anckle bracelet but we can easily apply the same process to cell phones and apply the same principle to employees that are suspected of theft or of not being where they are supposed to be. For now, access to the GPS data in cell phones is a bit cumbersome but I would expect that digital businesses may require their employees to add special tracking apps in their phones - especially company-provided ones - and keep a record of their personnel.
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Curated by Farid Mheir
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