18 EQUIPMEN T, DESIGN AND OPERATIONS HANDBOOK 2 017 | SUPPLIER PERSPECTIVE www.groceryheadquarters.com
EDO HANDBOOK 2017
Dane Technologies designs solutions that help retailers leverage existing
infrastructure and compete effectively with online retailers, says Daniel
What are the biggest challenges
currently facing the grocery
Daniel Johnson: There is a massive
consumer shift happening. The ease
and convenience of online shopping, combined with fast delivery,
has caused many customers to make
more of their purchases online. The
data confirms this seismic shift.
• Globally, online retail purchases
totaled more than $1.5 trillion in
2015 and are projected to reach
$3.4 trillion in 2019.
• U.S. online retail sales in 2016
exceeded $290 billion, growing
14 percent over 2015.
• Online grocery sales reached
$20 billion representing 4. 3
percent of all grocery sales.
• FMI projects online grocery sales
will account for up to 20 percent
of all grocery sales by 2025.
They project compound annual
growth rates between 9-20 percent. At the top end of the range,
that represents a 500 percent
increase over the next decade.
This market shift presents both
a challenge and an opportunity for
grocery retailers. The competition
for online market share has already
begun, as major players such as
Walmart and Amazon build their
online offerings and linked promotions. To survive and prosper, many
grocery stores will need to quickly
adapt to deliver the convenience that
online shoppers expect.
How have innovative grocers
Most online grocery shoppers want
to select a portion of their purchase
at the store. That fact, combined
with targeted promotions, rewards
a visit to the store allowing an
online order to be picked up. This
click-and-collect model can also be
extended to add local delivery.
Click-and-collect has been
implemented by leading grocers in
the U.K. and France and is growing
quickly in the U.S. Most grocery
stores were not designed to be
an efficient online order delivery
platform, yet click-and-collect is
changing the way the typical grocery store operates.
The store is becoming both a
destination for customers wanting
a store experience and a customer
facing mini distribution center (DC),
with order-picking during normal
business hours. This requires reinventing a number of processes in
the store. Just like in a DC, order-picking efficiency reduces costs,
but the tools that drive efficiency
in a DC are not well suited for in-store operation.
How is Dane Technologies
providing a solution?
We design solutions that help lead-
ing retailers efficiently implement
click-and-collect, enabling brick-
and-mortar stores to leverage their
existing infrastructure and compete
effectively with online retailers.
Over the past three years, Dane
has worked with a leading global
retailer to develop an integrated
range of solutions designed to
power click-and-collect in both their
stores and distribution centers. The
result is the Dane Technologies
The Smart:System combines
the Smart:Drive, a compact power
assist that can be easily operated in
store environments, with a configu-
rable order fulfillment and restocking
cart that maximizes the efficiency of
in-store order picking or restocking.
The Smart:Stack is a unique
pallet system that allows carts con-
taining orders to be easily placed in
warehouse racks, freeing up valu-
able back room floor space.
This combination creates a
low cost, high ROI solution for
store-based click-and-collect or
click-and-deliver. It makes picking
and staging orders in-store or at a
curbside pick-up location safe and
efficient. The Smart:System enables
a streamlined and flexible online
order fulfillment process.
Of course, every store will have
unique goals as they implement
click-and-collect or click-and-deliver. Dane specializes in working
together to develop solutions that
help meet the challenges and
capture the opportunities presented
by the rapid shift toward buying