subject: Sainsbury's Last Mile Delivery: Case Study [print this page] Introduction Introduction
A recent survey by Verdict Research of UK online shoppers showed that choosing a delivery slot is the fifth most important factor when choosing where to shop online. Unlike many retailers which offer lengthy time slots which in some cases are as long as a day, Sainsbury's has been offering one-hour delivery time-slots for the best part of a decade
Scope
*Discusses Sainsbury's last mile delivery processes and the technology assisting in meeting service levels
*Provides insight into last mile delivery best-practices
Highlights
Achieving high service levels is a key differentiator for Sainsbury's in the online grocery space
Real-Time Scheduler helped Sainsbury's improve service levels while cutting resource cost
Table Of Contents :
SUMMARY 1
Catalyst 1
Ovum View 1
Key Messages 2
Achieving high service levels is a key differentiator for Sainsbury's in the online grocery space 2
Oracle Real-Time Scheduler helped Sainsbury's to improve service levels while cutting resource costs 2
CASE STUDY 3
Background: 'Sainsbury's Online' business overview 3
Sainsbury's Online 3
Sainsbury's Online 'last mile' delivery 4
Aims and objectives: exceeding customer service expectations to achieve differentiation in the intensely competitive online grocery sector 5
Competition in the online grocery space is becoming more intense 5
Service is a differentiator and, for Sainsbury's, is top priority 5
Sainsbury's needed to improve delivery service levels 5
Solution: improving delivery service levels 6
Sainsbury's focused on improving delivery services within one-hour time-slots 6
Sainsbury's uses Oracle Real-Time Scheduler 6
Telemetry is used to improve road speed calculations 8
Successes: meeting the service level promise while improving efficiency and reducing the cost base 9
Sainsbury's is delivering on its service level promise 9
The grocer recognized a 20% cost base improvement in the first year 9
Online transactional data improve overall in-store product availability 9
RECOMMENDATIONS 11
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