Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Posted by on in Omni-Channel Retailing
  • Font size: Larger Smaller
  • Hits: 2641
  • 0 Comments
  • Print

Covid-19 has Highlighted the Need to Improve the Online Shopping Experience

b2ap3_thumbnail_dreamstime_l_176139244.jpg

As seniors with underlying health issues, my wife and I have made the decision to commit to buying all groceries and supplies online, until the risks of this virus are greatly diminished. For the past three weeks, we have been testing a variety of online grocery service providers. This is what we have learned.

Grocery shoppers and online service providers were caught off-guard by the speed with which Covid-19 has changed purchasing behavior for both online and in-store grocery shoppers. Empty shelves and “out of stock” notifications have become the norm as self-quarantining, “panic buying,” hoarding, and the closure of restaurants and bars have dramatically altered buyer purchasing volumes. Therefore, rather than critique any specific online providers under these circumstances, I will share a few general observations on some of the challenges my wife and I have faced and offer some opportunities for improvement.

1. Expand the Range of Delivery Options

For one of Canada’ leading online grocery providers, it is nearly impossible to select a date and time for a delivery. They provide a one-month window usually with no available time slots. When you call the 1-800 line for assistance, it is always busy. You can sit at your computer all day and wait for a time slot to become available. That is not a good use of one’s time and is very stressful in these already stressful times.

In the case of another leading Canadian grocery chain, we repeatedly received the message that there were no time slots available. You only receive this message after you have completed your order, a big waste of time.

There are clearly opportunities for improvement in the delivery time selection process. These options include expanding the warehouse, expanding the driver pool and enlarging the delivery calendar to two or three months as some companies are doing. Alternatively, there is the option of delivering clusters of products that are available at different points in time, as is done by one of the online delivery giants.

2. Be Honest about Product Availability

My wife and I ordered twelve items from one leading grocery chain, before the full impact of Covid-19 came into effect. On the designated date (five days after placing the order), we received three items (but were billed for four). We received an email, just prior to the delivery, advising us that we were receiving a refund for the other eight items. When we called the customer service line, we were advised that the wait time was 59 minutes.

Online retailers need to be able to link their in-stock inventory and their in-transit inventory to their online order process. As consumers, we need to be provided with a future delivery date for each product and have the option of accepting or rejecting the proposed date. If the stock is not available at time of order, or at a date in the reasonable future, we should be told up front so we can pursue other options.

3. Build in Control Mechanisms to Prevent Hoarding

Online grocery chains have a responsibility to meet the needs of a large number of their clients. Keeping in mind their level of in-stock and in-transit inventories, they need to try to make their products as widely available as possible.

To do so, these chains should suggest substitutes in each product category (i.e. Scotties facial tissues instead of Kleenex facial tissue), if a substitute is available. This expedites the online shopping process. Moreover, their software should restrict the numbers of items that can be purchased of each product. It is fair to limit a purchase to one or two units of a particular product, per customer, for items that are in short supply. If a consumer has a legitimate need for a larger number of a specific product, they can always order that item the next day.

4. Consistently Perform Tests of the Online Shopping Experience

We observed that some online retailers are changing their online processes from week to week. One week a large grocery chain was accepting phone orders; the following week, they changed to an email input/phone call confirmation process. We used their service before and after the change. The phone call input process worked well for us. We assume they made the change to email only because of the volume increase, to not consume the time of their precious in-store personnel.

The problem is that the email input process did not work. We did not receive a phone call to confirm our order. When we called the store to find out what happened to our order, they could not find it and never called us back. We understand that grocery retailers across Canada are swamped and that an order can “fall through the cracks.” As a consumer, we suggest that retailers check that their processes work before they introduce them to the public. We have shopped at this retailer for many years and held them in high esteem. This failure shook our confidence in this company.

5. Adapt, Refine and Improve Current Business Models

Prior to Covid-19, one of Canada’s largest drug store chains delivered drugs only (i.e. no pharma products) to our home, when requested. When we called them during the crisis, we were informed that they only deliver drugs to clients with significant mobility issues. When we advised them that we are seniors with underlying health issues, we were informed that we don’t meet the criteria for home deliveries. When challenged to explain why they cannot help us, we were told that they only have one driver to perform this work and that they cannot serve any other segments of the population. They offered us the option of picking up our drugs in the store or they will bring them to our car, if we drive into the parking lot and call them from our vehicle. That is a totally unsatisfactory response.

These are difficult times. Nevertheless, companies that supply essential goods need to adapt their business models. There are a range of companies that perform deliveries. Why not engage one or more of these companies and arrange for them to deliver pills, toothpaste, shampoo and other products that one typically purchases in a pharmacy? As a minimum, why not more carefully identify the most at-risk segments of society (i.e. seniors with underlying health issues) and make them a priority?

One of the most positive experiences we have had over the past few weeks has been the response from our local grocery stores.  They have stepped up, taken our orders over the phone, and delivered our groceries on a next day or second day basis.  One store advised us that they are only providing this service to their longstanding existing customers.  While they are a fraction of the size of the large grocery chains, they should be congratulated for the high quality, personal service that they provide.

We all understand that these are unprecedented times. Online grocery shopping systems were not designed for this type of crisis, for a dramatic shift from in-store to online shopping, and for the significant upswing in volumes. As a result, these suggestions are presented with an understanding that both shoppers and retailers need to come up the learning curve. Since it is likely this crisis will last one or more months, we hope that some of these deficiencies can be fixed in short order.

 

To stay up to date on Best Practices in Freight Management, follow me on Twitter @DanGoodwill, join the Freight Management Best Practices group on LinkedIn and subscribe to Dan’s Transportation Newspaper (http://paper.li/DanGoodwill/1342211466).

0

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 08 May 2024

Most Recent Posts

Search


Tag Cloud

Conway Blogging Retail Software Advice Montreal Canadiens Search engine optimization Freight Recession Masters in Logistics ELD Freight Capacity Load Boards shipper-carrier collaboration Bobby Harris Emergent Strategy Amazon Tariffs NAFTA Horizontal Supply Chain Collaboration Canadian truckers Business Development Government dark stores Rail Impeachment cyber security Freight contracts 2012 Transportation Business Strategies. Jugaad Canadian Transportation & Logistics APL Freight FMCSA TMS US Auto Sales NCC Canada-U.S. trade agreement YRC CSA scores economy truck driver Life Lessons business start-up freight marketplace coaching Rotman School of Business Twitter cars Load broker e-commerce Keystone Pipeline Colilers International Railway Association of Canada trucking company acquisitions automation Digital Freight Networks Carriers trade Broker Surety bond transportation news computer NMFC truck capacity US Manufacturing carrier conference driver pay Driver Shortage broker bonds New York Times Facebook Value Proposition the future of transportation shipping Canada U.S. trade freight broker tanker cars Ferromex Adrian Gonzalez Finance and Transportation supply chain management financial management employee termination Training freight cost savings Global experience freight RFP transportation audit Hudsons Bay Company Deferred Packaging Canadian Protests FuelQuest economic forecasts for 2012 Freight Management laptop shipper-carrier contracts Rate per Mile Transport Capital Partners (TCP) driverless Truckload freight transportation conference Outsourcing Sales Business Transformation Strategy Harper Davos speech Yield Improvement natural disasters US Election broker security autonomous vehicles Retail transportation Omni Channel Otto Crude Oil by Rail Sales Strategy freight transportation buying trucking companies 3PLTL Dan Goodwill CN Rail pipelines ProMiles robotics Shipper dimensional pricing freight payment Celadon BNSF Failure computer protection recession FMS Trucker Protest US Economy Blockchain freight bid Geopolitics Business skills Distribution JB Hunt Education 2014 freight volumes peak season derailments freight agreements Career Advice home delibery BlueGrace Logistics Global Transportation Hub Leadership KCS CP Rail Politics Schneider Logistics Grocery Climate Change MBA bulk shipping Canadian freight market hiring process FCA cheap oil Toronto Maple Leafs Inbound Transportation Sales Management Trump David Tuttle truck drivers Stephen Harper Trade Vision Sales freight transportation in 2011 freight forwarders Doug Davis 360ideaspace Regina Freight Matching Transportation Buying Trends Survey asset management Fire Phone online shopping Derek Singleton Success failure entrepreneur small business Transportation service Packaging EBOR Right Shoring UP Transloading Habs 3PL Werner Dedicated Trucking economic outlook Freight Rates President Obama Electric Vehicles Tracy Matura Whole Foods consumer centric Management routing guide drones CITA Shipper Pulse Survey Transcom Fleet Leasing Microsoft Transportation Canada's global strategy USA Truck LTL freight rate increases Scott Monty selling trucking companies $75000 bond Digitization freight audit computer security Driving for Profit Social Media in Transportation Consulting LinkedIn Canadian economy fuel surcharge technology Success marketing Accessorial Charges FCPC Dedicated Contract Carriage TMP Worldwide Social Media Comey CRM Loblaw autos IANA energy efficiency Sales Training Job satisfaction business security 2013 Economic Forecast 2014 freight forecast ShipMax home delivery Associates China intermodal Swift 2014 economic forecast driver shortages solutions provider MPG Cleveland Cavaliers CSA freight costs Spanx Donald Trump Online grocery shopping USMCA future of freight industry risk management last mile delivery shipper-carrier roundtable Business Strategy shipping wine Justice General Motors CSX Trucking professional drivers YRCW Toronto Doug Nix Wal-Mart Map-21 capacity shortage Muhammad Ali CN Infrastructure dynamic pricing Crisis management Leafs RFP small parcel digital freight matching Freight Carriers Association of Canada University of Tennessee driver network optimization transportation newspaper US Housing Market Training New Hires Covid-19 Freight Shuttle System Reshoring TransForce Hockey capacity shortages Entrepreneur LCV's 2015 Economic Forecast Transplace customer engagement mentoring NS rail safety Coronavirus Uber Freight Warehousing Anti-Vax freight payment freight audit Canada

Blog Archives

May
April
March
February
December
October
September
August
June
May
April
March
January