Creating a network of local kirana and ‘mom and pop’ stores to harness theircommunity knowledge and facilitate last mile delivery for a large sizedcompany’s FMCG division via an online order process

Services used:
Now express 45
Now Slot Delivery

Impact

HUL could offer superior customer service at a competent cost
HUL could offer superior customer service at a competent cost
HUL could offer superior customer service at a competent cost
HUL could offer superior customer service at a competent cost
HUL could offer superior customer service at a competent cost
HUL could offer superior customer service at a competent cost

Challenges

For a big client like HUL the challenges were multi faceted like
HUL does not directly deal with the retail stores
To build an online order fulfillment system lots of touchpoints need to bemanaged:
  1. Delivery fleet - Maintaining and managing a group of deliveryexecutives for eachretail outlet and locality
  2. Inventory - Keep track of stock and update inventory in real time
  3. Promoters - They need to push retailers to accept orders
  4. Tech support
Demand/Supply management with day time and weekend spike in orders,

Approach

Shadowfax devised a 2 pronged approach to create an omnichannel last miledelivery
Model around local kiranas:
Approach 1

Integrate delivery service with product flow of local kirana shopsbypartnering with Shiprocket - automated shipping software

Approach 2

Build a solution that caters to the following use cases:

  • Customer is able to order online when stock is available in outlet
  • Delivery Executive is available nearby to fulfill the order delivery

The details

  1. The first part of the solution was worked out with the tech integration whereonline orders werereceived by store X based on stock availability. A customer could place anorder from store X onlywhen HUL’s product was available in that store. This was a win-win for theretailer and the customer,whether the former did not have to reject an order because of unavailabilityand the latter would beassured of the product availability in the local store.
  2. The second part about fleet management was tackled by efficiently makinguse of deliveryexecutives as a mobile asset between N number of stores in a locality.So how did Shadowfax mobilise the delivery fleet?
To make the model feasible for HUL, Shadowfax did the following:
  1. Created clusters based on order volumes in different localities andassigned a set number ofdelivery executives to these clusters based on the order volume
  2. We identified periods of order spike to make sure that delivery executivesare availablewithin their clusters to manage the spike
  3. We figured out a way to cross-utilise our partner network from otherdelivery verticals to caterto higher demands during spike periods
  4. We devised an incentive structure to encourage rider availability nearstores for betterserviceability and On Time in Full metrics

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