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Kroger Case Study-3

Case Study

Grocery Retail Transformation: 
How Nextuple’s Omni Control Center Revolutionized a National Grocer’s Operations

-5% Late Orders to Customers
30% Proactive Late Order Alerts
48Hrs Dashboard Built & Deployed

Nextuple’s Arrivals Dashboard was delivered into the flagship store within 48 hours of conceiving the requirements and was later rolled out to the network of stores within a few weeks.

Customer Profile

One of the nation’s largest grocery retailers, with over 2,500 stores, and an annual revenue well over $100 billion, harnessed the power of Nextuple’s expert services to develop a comprehensive and integrated Order Monitoring platform. This initiative was driven by the retailer’s expanding requirements and the need for a unified system to streamline their operations.
Starting in 2018, the grocery retailer significantly expanded their online grocery business to a wider network of stores. They implemented the use of Instacart services in a substantial portion of their locations, managed their own fulfillment for numerous stores, and were actively considering establishing micro fulfillment centers to enhance their distribution capabilities in multiple markets. 
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The Challenge

As the grocery retailer embarked on an expansion of their online grocery operations to numerous additional stores, they identified a critical gap in their legacy Order Management Systems– the absence of a centralized hub for overseeing and monitoring order flow. This realization was prompted by several pressing challenges they encountered during this time.
Among the issues they struggled with were instances of system instability, and communication of messages across the multiple systems that were involved in order fulfillment which often caused disruptions in the smooth flow of order information to the stores. This instability created a ripple effect, leading to numerous instances of delayed orders and frustrated customers. It became abundantly clear that the legacy order fulfillment systems in place were ill-equipped to handle the demands of their growing online grocery business, necessitating a comprehensive solution to ensure the seamless monitoring of customer orders across their expanding store network.
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The Solution

Nextuple developed the Omni Control Center, a comprehensive event monitoring solution that provided the grocery retailer with a unified platform to monitor all their orders originating from various channels and flowing into their fulfillment locations, tracking the entire journey through customer fulfillment, in one place. Omni Control Center also allows the client to raise alerts in the case of any order obstructions or delays in customer pick-up. It was expanded to notify the customer if their order would not be ready for pickup or delivery on time, automatically sending a text message suggesting an estimated delay.

The solution footprint was expanded over the course of 3 years in partnership with the grocer to broaden their monitoring scope and feature sets for internal users. In addition, in response to the explosion of online orders during COVID, Nextuple delivered an extension to the Omni Control Center solution called Arrivals Dashboard. This dashboard relayed arriving customer information to a TV monitor within the store, providing valuable information to employees, including the customer’s identity, their wait time, the quantity of items in their order, order status, and the staging location. This entire solution was delivered within 48 hours of conceiving the requirements into the flagship store and was later rolled out to the network of stores within a few weeks.

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The Results

With demonstrated success in reducing late orders by 5%, a 30% increase in proactive alerting customers of late orders, and improving customer satisfaction, Omni Control Center has become a standard monitoring framework for all fulfillment processes, including micro fulfillment centers and ship to home. The retailer’s support teams currently utilize the tool to continuously monitor issues impacting their stores and systems. All management is now centralized within the Omni Control Center and any new system additions are seamlessly integrated into Omni Control Center.

The grocery retailer’s order volume during COVID jumped from 80,000 to 200,00 orders per day, a 150% increase. The use of Nextuple’s Omni Control Center was critical for the retailer to manage the large increase in orders, with little impact to customer experience. 

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