Each year, ES3 brings you a look at the key drivers in the supply chain, and what they mean for your business. Stay tuned this year as we explore what it means to be a Customer First Supply Network, and how we can leverage changes in the industry to get us there.
The Sensor Age
The grocery industry has not been entirely immune to the impacts of technology, but it has been slow to apply technology’s benefits to create an advanced supply chain. Sensors, real-time monitoring, robotics and analytics have the ability to significantly impact the supply chain for the better. As an industry, we need to take the first step into the future.
The cost of sensors has finally decreased to the point where it is feasible to think about implanting tags or sensors on grocery items. In the short term, we are likely to still see sensors confined to smart refrigerators and other appliances in the kitchen. Long term, imagine if sensors were on all your grocery and pantry items and you could receive an alert asking if you wanted to re-order paper towels and an esoteric ingredient you had purchased for a recipe, when you were almost out of both items. The mundane task of making a grocery list is gone, and the consumers’ brainpower is freed up for other activities. Imagine that your app also searches the internet for the best pricing and delivery options that meet your requirements. The purchase decision for an item and retailer is now in the hands of your device. Manufacturers and retailers will have to work harder to change your preferences.
We are getting closer to that path with technology that is available today. Through certain platforms, consumers can read recipes online and add all the ingredients required to their online shopping cart. Instacart has partnered with Yummly, a recipe app with a Pinterest-like platform, to deliver ingredients for recipes in one hour or less. Many retailers facilitate the step of adding ingredients to a shopping list, but few go as far to allow actual purchase and delivery of items. This will likely become more common in the future as retailers level the playing field and improve their online offerings.
Supply Chain is a Competitive Advantage
Consumers want options that make their lives easier, and companies who can provide consumers convenience and time back are going to win wallet share. What are you doing to make your customers’ lives easier? Whatever you decide, we can help you fulfill their demand through quick order-to-delivery cycles, and by leveraging new technology to make the supply chain move faster and smarter.