Automation, gig economy can help retailers to improve high quality delivery

Some of the consumer product companies and the grocery and food retailers must invest in the last miles delivery services to unlock some of the new profitable and revenue streams, cut costs and drive the profitability according to the report which has been revealed by the Capgemini Research Institute.

The study comes after having a surveyed with more than 3000 consumers and 500 supply chains entrepreneurs, executives and industry leaders as well, which found that 97% of the organizations has a believed that some of the existing last mile delivery models were not sustainable for the full-scale implementations across the entire locations. Shipping cannot be free unless there is any of the delivery cost which is reduced via the automation, the company report revealed.

The study also shows that there is a wide range of significant opportunity in the field of automation as more than one-third of the supply chain costs from the product storing and warehouse. By recognizing this opportunity, more than 90% of the organizations, are nowadays investing in the automation and mechanism of the store back rooms to expedite fulfillment and delivers.

The report also shows that more than 50% of the customers surveyed as of now has order groceries online at least once a week and this number is also going to touch the 55% by the end of 2021.

The report also concluded that the wide range of increasing store based deliveries by the 50% could help to potentially lead the profits margins to soar by the 9%.

The study also shows that back room automation could also help to increase profits by more than 14% by simply reducing the cost of collection and click and deliveries from the store.


Written by Udit Agarwal

Startup/Tech News Correspondent, Responsible for gathering information on the tech companies working on IOT, AI, ML, Cloud, Mobile Technologies,

Udit can be reached at [email protected]

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