Case Studies

Enabling customer satisfaction through smart logistics in E-grocery

E-grocery is now becoming a preferred mode for shopping groceries, fresh fruits and vegetables, personal care, and dairy, among others. While the sector is still nascent, customers are flocking to these platforms to fulfill their daily/weekly needs. Thanks to the very nature of the grocery requirements, customers expect quick and efficient deliveries.

What problems do E-grocery companies face in logistics?

SLA management: With multiple deliveries to do on any given day, managing SLAs is a huge problem for riders. Everything from real-time traffic constraints to time taken at a customer’s place to deliver the goods, affects the promised SLA.
Managing assets and fleet utilization: More riders don’t necessarily mean a higher number of deliveries. Can you make fewer riders deliver more goods? Also, operation managers find it really tough to allocate deliveries fairly to each rider/driver. Some drivers have to travel a lot to do their deliveries, some not so much, whereas some drivers might have to deliver more valuable goods as compared to the others. Also, managers might want to match the best drivers to the most valuable customers. Optimizing for all these scenarios takes a toll on managers.
Manual planning and tracking: A lot of operation managers do manual route planning. Manual route planning depends on the knowledge and biases of the operation manager. It also does not account for real-time events like traffic, canceled delivery, roadblocks, accidents, etc.
Inaccurate geocoding: If finding addresses was really easy, on-time delivery would not be so tough. But the sad truth is that getting accurate addresses is a luxury across countries. This results in delayed ETAs and low level of customer satisfaction.

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Achieving a high on-time delivery rate

A leading E-grocery player in India, which has operations in 25+ cities and has over 18,000+ products on its platform, was looking to solve the following problems:

Achieve high-level of customer satisfaction through high SLA compliance
Drive down logistics costs by higher asset utilization with respect to volume and time
Adoption of technology to manage operations at scale to automate some of the decision making and reporting

With Locus Route Planning Software onboard, the E-grocer’s orders are batched throughout the day. Locus generates optimum routes that maximize volume utilization, orders/vehicle and minimize travel distance, while ensuring that orders are delivered as per customer preferred slots.

In addition, Locus has modeled several on-ground constraints such as route restrictions, saddlebag constraints, base van counts, custom reports, etc that help drive high operational efficiencies.

The company achieved 99.5% on-time delivery, volume utilization of 95%+ and achieved a lower delivery cost and increased orders per delivery bike.

Solutions Offered

Locus Dispatcher, the algorithmic route planning optimization software, generates optimized routes using Artificial Intelligence (AI), thereby enabling the riders to deliver more with less time. This results in increased vehicle efficiency and better compliance
Time slot management and same-day deliveries to gain customer satisfaction
Driver allocation system to ensure high rider time utilization
Proprietary Geocoding services to improve pickup and drop point accuracy, which helps in decreasing costs in the last-mile delivery operations

Business Sector

E-grocery

Performance Improved

99.5% on-time delivery

With Locus, companies in the E-grocery space can

Achieve time-slot based deliveries
Achieve same-day deliveries
Use existing infrastructure to come up with an omnichannel platform
Analyze and track the performance of its workforce, warehouses, and vehicles
Achieve the best possible fleet mix for both one-time and daily dynamic fulfillment operations plans
Optimize both forward and reverse logistics
Real-time ETA, with delay notifications
Identify service zones for your stores and also come up with the best warehouse location
Come up with optimized dispatch plans after considering SKU bifurcation, regulatory constraints, work timings, etc.

Locus Helps Businesses Globally Achieve Their Last Mile Goals

Time-slot Deliveries

Same-day Deliveries

Data Analysis

Real-time Notifications

On-ground Optimization

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