Grocery Headquarters, US: Cognizant’s Assistant Vice President, Products and Resources, Discusses Digitization in the Grocery Supply Chain

"The revolution has just begun and there is a long way to go to fully exploit the potential of digital innovations," says Girish Dhaneshwar. “Most of the innovations that will optimize the grocery supply chain in the future will come about because of digital transformation.”

Several innovations have optimized the grocery supply chain in recent years. This has led to improved efficiencies and cost savings, which have been welcomed and embraced by retailers facing threats from all sides. Competition from Amazon as well as from operators like Aldi—and soon Lidl—only adds to the challenges posed in over-stored marketplaces in many parts of the country.

To address these threats, industry observers say that a relentless focus on supply chain efficiency will continue to help separate the winners from the losers.

Most observers say that food retail is now on the front end of digital disruption, which will force integration of store and e-commerce supply chains and justify investments in distribution and logistics to improve speed, efficiency and effectiveness. Technology enabling key functions—including forecasting, replenishment, inventory management, supplier collaboration and PO management—in many grocery supply chains is more than 10 years old, and overdue for reinvestment.

Dhaneshwar says the "last-mile" in grocery home delivery is one of the most challenging aspects of the business model. Retailers are finding out that the final part of the supply chain needs a lot of improvement to address the complex customer interaction needs around product delivery, product substitution, returns management and so forth.

"By leveraging a combination of superior devices, improved visibility, IoT and structural arrangements with last mile delivery service providers, companies can provide a vastly superior customer experience that drives growth for the home shopping segment," he says.

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