Fast Five Shorts | Giant Eagle Invests In Cutting Driver Wait Times
In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Avalara, Mirakl, Ownit AI, and Ocampo Capital Chris Walton, Anne Mezzenga and guest host Joe Laszlo of Shoptalk discuss: Giant Eagle Investing In Cutting Driver Wait Times
For the full episode head here: https://youtu.be/XlWTHMPWRDU
Giant Eagle's partnership with Flyby marks a pivotal moment in the evolution of grocery delivery services, as the two companies collaborate to enhance last-mile logistics. The initiative aims to slash delivery wait times by leveraging Flyby’s sophisticated location-based technology, which not only optimizes the driver’s route but also provides real-time updates on order status. With the technology reducing average wait times to less than two and a half minutes, Giant Eagle is setting a new standard for efficiency in grocery delivery, a crucial factor as consumer expectations continue to rise. This investment reflects a broader trend in the grocery sector, where operational efficiency is becoming as important as the consumer experience itself.
The panelists delve into the significance of in-store fulfillment versus other delivery models, such as micro-fulfillment centers. They posit that while many retailers are exploring diverse strategies to meet customer demands, the local store picking model remains essential for driving down costs and ensuring prompt deliveries. The discussion emphasizes that even small improvements in logistics can yield significant returns, both financially and in terms of customer retention. The hosts suggest that as grocery retailers adapt to new technologies, they must also consider how these advancements can enhance customer loyalty and streamline the shopping experience.
Furthermore, the conversation shifts to customer transparency in delivery services, where real-time order tracking can significantly impact consumer satisfaction. The hosts highlight that notifying customers about the status of their deliveries not only manages expectations but also reinforces trust in the retailer. By focusing on backend operations and investing in technologies that improve efficiency, Giant Eagle and others in the industry are positioning themselves to better meet the needs of modern consumers. The episode ultimately underscores the grocery sector's innovative potential, emphasizing the importance of marrying operational improvements with enhanced customer service.
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Transcript
Giant Eagle wants to slash delivery times delivery wait times, to be specific, according to grocery Dive, Giant Eagle announced Tuesday an expanded partnership with omnichannel location platform Flyby to bolster its last mile delivery service and cut avoidable delivery driver wait times by at least half.
Speaker A:The partnership extends the technology company's location based service, which orchestrates product picking in line with the driver's distance from the store to the groceries delivery program.
Speaker A:Flyby's AI powered location technology can pinpoint which driver is arriving for specific orders and send alerts to its main dashboard and picking app.
Speaker A:The technology has reduced wait times to less than two and a half minutes on average.
Speaker A:Joe, that's clock.
Speaker A:That's a clock time.
Speaker A:Joe, what do you think of Giant Eagles investment?
Speaker A:What do you think giant Eagles investment in Flyby says, if anything, about where grocers are willing to invest their money?
Speaker B:I have a couple of thoughts on the Flyby investment.
Speaker B:I think, first of all, it underscores that for a lot of grocery retailers, in store fulfillment is still super, super important.
Speaker B:I mean, I think it's always going to be a spectrum.
Speaker B:Some in store fulfillment will be the most economical route, some micro fulfillment centers, some big hubs.
Speaker B:I think all three can work depending on the situation, but I think it does underscore that that in store pickers and delivery from local stores is a really important piece here.
Speaker B:I also think we're in an era where kind of small incremental improvements can really help with the economics of grocery delivery.
Speaker B:In this case, kind of a small savings of time is definitely, definitely translates into money.
Speaker B:And as we were talking about in the kind of Walmart segment at the top, small improvements in customer experience also probably have a measurable outcome in terms of really cementing that grocery e commerce, shoppers loyalty and keeping them coming back.
Speaker B:So I think there's a whole bunch of different benefits that giant eagle potentially stands to gain if the time savings that it's reporting scale and continue.
Speaker A:Anne, what would you add?
Speaker C:Yeah, I mean, Joe knows we've been on these calls at shop talk fall.
Speaker C:I'm going to be doing a panel where we're really talking about how retailers can better unify commerce experiences for their customers, make it more seamless.
Speaker C:While it seems like the focus then of these technological investments would be on the consumer side of things, maybe on its surface it's actually showed us, like giant Eagle and Flyby here, that it's more investments in operational technology.
Speaker C:It's figuring out ways to, you know, get things running as efficiently as possible.
Speaker C:And this is for, in this case for delivery drivers.
Speaker C:I mean, you have better store operation visibility then too, if you know where these drivers are and what their load is that they're taking already.
Speaker C:And then in addition to faster delivery speeds, I think it should be able to also provide them with more transparency for the customers too, of like actually here, you know, yes, we're doing a two hour delivery, but this guy is going to be there faster than 2 hours or this might be a little bit longer than 2 hours, but just gives that visibility to the customer so that they know what to expect, which I think that is how you're really paying off a better, more unified commerce experience for customers.
Speaker C:Again, investing in the technology like John Eagle is with flyby to make sure that your operations are running smoothly and that's what provides that key customer experience.
Speaker A:Yeah, I agree with both of you and I don't have a ton to add here, but I think this headline is just further proof, especially when we look at the headlines over the last week, how Walmart and Amazon dominated the headlines.
Speaker A:And then this is one that cracks the code here to me when I step back in preparing for grocery shop for my interviews too, that I'm doing on stage next week, it just goes back to the adage and show me the money, right?
Speaker A:That seems like grocers are investing in either back end operations or retail media.
Speaker A:Anything else just isn't going to get past the budget committees and smartly so.
Speaker A:And that's why I think the grocery industry has been relatively more, the more innovative sector of has been the relatively more innovative sector of retail than say other verticals.
Speaker A:And because, you know, sometimes we get so distracted by the shiny penny on the ground that we want to pick it up of all the consumer experiences, the bit tech and everything, but the end of the day, the smart money is still going to the backend operations and particularly for grocery retail media as well.
