The digital landscape for grocery shopping is expanding rapidly both regionally and globally
The integration of sophisticated automation technologies is pivotal, enabling these businesses to streamline operations, enhance efficiency, and meet the evolving needs of their customers with unparalleled precision, affirms Rami Younes, General Manager, Swisslog Middle East, in this special contribution for www.LogisticsGulf.com.
As regional consumer behaviour undergoes a swift transformation, particularly in the e-commerce sphere, the surge in online grocery sales in the Middle East underscores a significant shift.
According to PayPal, mobile e-commerce in the UAE is second only to China, with almost 60% of UAE users buying items using their smartphones in the past year. Amidst this burgeoning demand, omnichannel grocers are harnessing the power of automation to redefine customer excellence.
The integration of sophisticated automation technologies is pivotal, enabling these businesses to streamline operations, enhance efficiency, and meet the evolving needs of their customers with unparalleled precision.
The digital landscape for grocery shopping is expanding rapidly, with e-grocery platforms in the UAE and KSA projecting significant growth and increased market penetration in the coming years, from 5.5% in 2016 to 13% by 2026 in the UAE and a remarkable 50% increase in average order size by 2026 predicted in Saudi Arabia.
Innovative strategies
This growth is supported by innovative strategies such as the adoption of dark stores and the expansion of logistical networks, aimed at improving delivery speeds and product diversity.
Furthermore, automation plays a critical role in inventory management, ensuring availability, tracking consumer trends, and facilitating the efficient fulfilment of online orders through robotic assistance and the exploration of autonomous delivery solutions.
This strategic embrace of automation by omnichannel retailers is not just enhancing operational efficiencies but is also setting a new standard for customer service excellence in the digital age.
Protecting the In-Store Experience
As the demand for online grocery shopping continues to rise, concerns have emerged regarding its impact on the traditional in-store shopping experience. In response to this, retailers are leveraging technology and automation to optimise the fulfilment of online orders and maintain good in-store experiences by reducing congestion and wait times.
For instance, Almarai, a leading Saudi multinational dairy company, partnered with Swisslog to automate its distribution logistics and fulfilment processes, which indirectly impacts the in-store shopping experience as well.
Automating picking and distribution processes leads to increased efficiency in fulfilling orders, reducing the time it takes for products to reach stores from distribution centres.
This efficiency translates to faster replenishment of stock on store shelves, minimising instances of out-of-stock items, and ensuring a smoother shopping experience for in-store customers.
Increasing Confidence in Online Shopping
Reducing in-store picking is the first step to expanding an omnichannel business. However, with increasing orders, manual picking, even in dedicated fulfilment centres, can constrain profitability, scalability, and speed.
This is why grocers like Raha, Kuwait’s first e-grocery solution, and others have opted for automation. When aiming for customer excellence, selecting the appropriate automation is pivotal.
The primary distinctions between e-grocery and other e-commerce lie in order complexity and picking schedules. E-grocery orders typically involve a greater number of items than regular e-commerce orders, and any inventory issues can halt fulfilment entirely.
Unlike traditional e-commerce, e-grocery functions like a continuous assembly line, with orders prepared throughout the day. Falling behind can adversely affect customer satisfaction and disrupt the entire day’s schedule. Grid-based systems like AutoStore prove highly effective in handling disruptions. Even if one robot goes offline, others can still access the entire grid, ensuring continuous order fulfilment.
Delivering Selection and Quality
Grid-based automation systems offer a high storage density, enabling e-grocers to offer online customers a broad range of products akin to in-store availability. This density minimises the need for substitutions and enhances customer loyalty by ensuring consistent product availability and quality.
Compared to shuttle systems, grid-based systems can store a larger proportion of products, thereby reducing the likelihood of substitutions for online customers. They are also adept at managing inventory for online orders, guaranteeing freshness and quality. For instance, the SynQ system can accommodate various inventory management approaches, including product selection based on expiration and best-by dates.
Furthermore, it enhances pick accuracy by directing pickers to the correct products and verifying the correct SKU, which is essential for upholding high standards compared to third-party in-store ‘shoppers’, who may lack familiarity with the store’s layout or product assortment.
Providing Unmatched Convenience
E-grocery shopping has become more than just a convenience—it is a way of life. In fact, 72% of customers say that they would opt for online grocery shopping just because it is more convenient.
People rely on e-grocery to save time during busy weeks or simply to grab essentials on their way home from work without leaving their car. In such a fast-paced environment, fast and reliable order fulfilment is paramount.
This is where automated systems shine, outperforming manual processes and setting new standards for convenience while bolstering the reputation of grocers across the region. For instance, e-grocers in the UAE are taking proactive steps to ensure they meet the evolving expectations of their customers in today’s omnichannel landscape.
While automation may not always be the initial step in this journey, it is increasingly recognised as essential for grocers seeking to differentiate themselves based on the customer experience they provide, all while maintaining control over fulfilment costs.
BOXOUT 1
Profile:
Rami Younes is the General Manager for Swisslog Middle East.
He is responsible for overseeing the strategic landscape of Swisslog’s operations across the Middle East, with a specialised emphasis on warehouse logistics.
With a career spanning more than 25 years, Rami brings a wealth of expertise in operations. Before joining Swisslog Middle East, he took on the role of Chief Operating Officer at ALS Logistic Solutions, where his visionary leadership played a pivotal role in the success of a notable 4PL Logistics start-up, Integrated Logistics Services, based in Saudi Arabia.
