Online Grocery Retailer with Home Delivery

Fastest TM implementation to date at Scandinavia’s largest e-commerce company

E-commerce is revolutionizing retail by shifting the last mile delivery responsibility from customers to retailers. Instead of replenishing stores once or twice a week with large trucks, retailers now must plan, organize, optimize and execute hundreds of home deliveries or parcel shipments every day. Norway’s 'Komplett Group', the biggest e-commerce company in Scandinavia, created an innovative and profitable solution with its marked.no Website where consumers can order groceries delivered to their homes. The key building block is an integrated supply chain solution from SAP coupled with implementation know-how from Westernacher.

 

We enable home delivery of groceries bought online at marked.no. By implementing the SAP Supply Chain Execution (SCE) suite, which includes SAP EWM and SAP TM, and adding a custom driver app based on SAP Fiori, we laid the foundation for another successful division of the most successful Scandinavian online retailer.

- Ronny Horvath, Managing Director, Westernacher -

 

As with all its Web shops, Komplett’s goal was to ensure simple user navigation that provides a unique user experience. The scope of the Web shop: high-quality groceries, freshly prepared meals, and DIY recipes.

 

Project Details

 

Customer convenience: User experience is paramount

An important service element is the home delivery offer. Customers can choose from a selection of available delivery times (two-hour windows) during the order process. Similar to Uber, dynamic pricing is used to balance demand and supply. The calculation is based on the delivery address and desired delivery window.

By balancing supply and demand, the built-in dynamic pricing also simplifies planning and execution of deliveries, thereby saving time and money for Komplett and its customers alike. During route planning, TM identifies the planned delivery time and it tracks the execution of the route plan using real time location information from the driver app.

Image Success Story Komplett Group

Image Success Story Komplett Group

If the customer is not at home, the driver can check the driver app for alternative delivery addresses. For example, the customer can designate a neighbor to receive the order or allow the driver to leave the groceries at the door without a signature. If all else fails, the order is delivered to a nearby, temperature controlled pick-up station where the customer can pick up the order even late at night. In all scenarios, the driver app notifies the customer and the customer service team in (near) real time.

 

Komplett needed an IT system that fulfils the execution because the food goes directly out to the consumer.

- Tom Rune Bjørnstad, Business Systems SAP, Komplett Group -

 

End-to-end System Integration for Streamlined Execution

The key for a high-quality shopping experience is friendly, dependable and on-time execution. Komplett achieves this by tightly integrating different systems. Key components in this landscape are SAP Supply Chain Management (SAP SCM), SAP Transportation Management (SAP TM) and SAP Extended Warehouse Management (SAP EWM) which process the completed order within a few seconds.

A particular challenge was the integration of maps to improve route planning and execution and to inform customers about a pending arrival. Once an optimal route is created, the route is communicated to the driver app as a sequence of delivery stops. Picking up the next delivery address, the driver app will provide the best route. SAP Event Management (SAP EM) is used to send a notification to the next customer, about 15 minutes before arrival. This allows the customer to ensure that he is at the delivery address or to make alternative arrangements.

Ensuring Compliance with SAP EM and the Driver App

Like many other countries and states, Norway has laws and regulations that retailers, especially home delivery retailers, must comply with. For example, retailers have to verify the age of the recipient of alcohol and tobacco products and document the information. In the backend, SAP Event Management (SAP EM) is used to define and track the critical steps and store the results. The driver app incorporates these steps and communicates all of this information to the backend system in (near) real time. The (near) real time information exchange allows the customer service group to respond to any situation and to interact with customers more effectively.

 

We needed a quick project realization. The result was globally the quickest SAP TM-Implementation, in just three months.

- Tom Rune Bjørnstad, Business Systems SAP, Komplett Group -

 

About Komplett Group and the project

Graphic Success Story Komplett Group

Graphic Success Story Komplett Group

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