CASE STUDY
This required a specific integration between systems in terms of inventory management and courier support .
As the operations of Nana matured , it decided to redefine its business model and opened its own dark store network . The benefit of this would have been to provide an end-to-end grocery delivery experience for its customers , within its operational control .
A dark store is a brick-and-mortar location that has been closed to visitors and turned into a centre for fulfilment operations . By not having to cater to in-person shoppers , dark stores allow all their available space to be converted into store inventory , thereby opening a business opportunity for rapid delivery of online orders .
This concept is not new and has emerged as brickand-mortar retailers abandoned their legacy stores and moved towards e-commerce . Dark stores went through another wave of growth during the pandemic . Dark stores are best suited for home delivery with same day delivery but also offer curb side and in-store pickup .
This business model requires highly accurate inventory management , semi-automated picking , order consolidation , route mapping , route optimisation , and rapid delivery .
However , the move by Nana towards building and managing its own deliveries from its dark stores required it to migrate from its legacy applications . Many of its previous operations and process , built around third-party deliveries , were redundant in the new model now integrated around its dark stores . entering . At the beginning this was also a limitation and pain point .
The usage of multiple systems across the operations increased the discrepancies in stock keeping , stock replenishments , and created inefficiencies . Lack of system integration meant that Nana had to resort to manual inventory management without real time visibility into stocks impacting order booking , stockouts and over stocking .
Variation in reported inventory levels and actual stock availability meant there were incidents of failed deliveries impacting customer satisfaction .
Last mile deliveries were also impacted in the beginning of operations . Lack of batching algorithms meant there was sub-optimal utilisation of the delivery workforce . This led to increased costs of delivery , longer delivery times than committed and adverse impact on customer satisfaction .
Yango Deli Tech ’ s solution stack
Max Avtukhov , CEO at Yango Deli Tech
For example , an integrated warehouse management system has an inbuilt checkout feature and therefore the POS checkout terminal , required previously , was now redundant .
Scaling operations around dark stores where rapid checkout and rapid delivery are fundamental , requires perfect technology integration across all systems , all orders and deliveries , and all order reversals if there is a cancelation or failed delivery .
Growing pain points
As it moved to the new business model around dark stores , integration and stock discrepancies emerged across the supply chain , commercial and operational functions . Nana implemented new systems for inventory and delivery , but synchronisation of data remained a challenge .
Visibility of every aspect of operations is an important factor in such high velocity operations that Nana was
At the core of Yango Deli Tech ’ s solution stack is a comprehensive warehouse management system . This system provides real-time visibility into inventory levels , allows for product movement tracking , and automates order processing . With this e-grocers can manage their inventory , minimise out-of-stock situations , and ensure timely order fulfilment .
Using sophisticated auto replenishment systems that incorporate machine learning models , the vendor can accurately predict demand and order the optimal amount of goods . Machine learning algorithms analyse historical sales data , customer behaviour patterns , external factors such as holidays , weather , as well as internal factors , like promotions and discounts to identify trends and patterns that impact demand .
The technology stack also includes solutions for couriers and pickers , optimising delivery routes and providing guidance to pickers within dark stores to maximise speed and efficiency in fulfilling orders .
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