Transformation of E-retail operational models for a major retailer
Reinventing ourselves to support the new growth ambitions of E-retail.
01
Problematic
The General Management of this major retailer reviewed the ambitions for its E-retail activity in mid-2020:
- To double the turnover of E-retail in 3 years
- To reach 20% of share for E-retail in the company’s turnover (compared to 8% today)
These new ambitions and the saturation of E-retail production capacity highlighted during the first phase of the sanitary crisis prompted the company to launch a study to define new E-retail operational models.
02
“Boosting home delivery and reinventing itself on the last mile management will allow the company to align with market standards and drive the growth of E-retail.”
Process
The adjustment of the General Management ambition on each of the distribution channels (store, drive, home delivery, company delivery, etc.) made it possible to initiate the reflection on target operational models and to define the initial assumptions of the study.
An analysis of processes and costs allowed to create different transformation scenarios (implementation of best practices, a dedicated E-retail stock in store, mechanization of stores, etc.). They were then compared according to different criteria (customer satisfaction, operational feasibility, financial availability). Three models were selected and applied to each store according to their projection to 2025.
A deployment roadmap was then defined to drive the transformation within the distribution points.
3
new operational models
+100%
of orders between 2020 and 2025
1,100
order pick-up points
Result
03
Result
The development and transformation plan for the E-retail activity has been shared and validated with the General Management: all the players are thus aligned with the target, the necessary means and the implementation schedule.
3 target models were selected:
- Establishment of a dedicated E-retail stock of 400 dry references within the store
- Establishment of a dedicated E-retail stock of 2,500 dry and fresh references within the store
- Creation of groupings of “satellite” stores around a preparer store equipped with a Goods to Man solution allowing the automation of preparation.
The implementation of this program requires a significant evolution of working methods and IT stores/back-office tools (OMS / TMS / WMS), which we have also supported.
A new transport organization and associated processes were defined and deployed across the entire stores base to enable the growth in home delivery and to optimize the last mile.