{"id":454942,"date":"2021-08-24T05:03:19","date_gmt":"2021-08-24T12:03:19","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=454942"},"modified":"2024-05-10T05:30:46","modified_gmt":"2024-05-10T12:30:46","slug":"office-grocery-delivery","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/office-grocery-delivery","title":{"rendered":"Delivery Innovation: Groceries at the Office"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[1001,369792,365242],"tags":[472211,406632,338542,238001],"department":[488812],"wherenext-category":[],"industry":[],"class_list":["post-454942","wherenext","type-wherenext","status-publish","format-standard","hentry","category-commercial","category-location-intelligence","category-retail","tag-delivery","tag-direct-to-consumer","tag-route-optimization","tag-site-selection","department-emerging-technologies"],"acf":{"short_description":"With companies under pressure to deliver everything and anything to consumers, supermarkets begin carting groceries to the office.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"With some corporate leaders slowly\u00a0nudging professionals back to the office,\u00a0innovative grocers\u00a0are\u00a0looking at\u00a0ways to\u00a0bring the store to\u00a0them. It\u2019s all to anticipate the needs of those who have grown accustomed to convenient shopping from home, a trend that began prior to the pandemic and has accelerated since.\r\n\r\nOffice grocery delivery involves <a href=\"https:\/\/www.grocerydive.com\/news\/lowes-foods-brings-grocery-pickup-lockers-to-office-buildings\/601596\/\">carting food to temperature-controlled lockers<\/a> positioned at office parks or inside office buildings. Lowes Foods, which has markets in\u00a0the US South, announced in mid-June it\u00a0<a href=\"https:\/\/www.trendhunter.com\/trends\/office-building-grocery-pickups\">would test the delivery method<\/a> at a North Carolina office. Deliveries are made three times a week\u00a0and the grocer texts or emails office workers when groceries are ready for pickup."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Article snapshot:<\/strong> As the grocery sector evolves to address changing shopping habits, industry innovators are installing lockers at offices to deliver fresh groceries to professionals. Location intelligence will be key to determining where to do so and how to keep costs down.","snippet":""},{"acf_fc_layout":"content","content":"With plans to expand office grocery delivery in that state as well as South Carolina, Lowes\u2019 effort to reach customers where they are is part of a larger industry goal. Forrester\u00a0expects online sales of\u00a0food and beverages to grow the fastest of any internet retail\u00a0category\u201430 percent annually between 2019 and 2024\u2014and <a href=\"https:\/\/www.grocerydive.com\/news\/food-and-beverage-will-lead-online-sales-growth-through-2024-forrester-say\/603161\/\">to account for 17 percent of all e-commerce sales by 2024.\u00a0<\/a>To make office grocery deliveries successful, grocers will need to make new use of the <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a> they and other retailers have long used when <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/dicks-sporting-goods-strengthens-omnichannel-through-brick-and-mortar-planning\/\">analyzing the potential for new stores<\/a>.\r\n\r\nDuring the COVID pandemic,\u00a0forward-thinking retailers used a geographic information system (GIS) to\u00a0manage delivery and pickup\u00a0orders. Yet, despite delivery\u2019s popularity with consumers, companies are still struggling to make it profitable\u2014just ask any of the <a href=\"https:\/\/www.wsj.com\/articles\/doordash-and-uber-eats-are-hot-theyre-still-not-making-money-11622194203\">brands delivering hot food to doorsteps<\/a>.\r\n\r\nGeographic\u00a0thinking will be essential to making the endeavor convenient for customers and profitable for grocers.\r\n\r\nWith <a href=\"https:\/\/www.esri.com\/en-us\/what-is-gis\/overview\">GIS technology<\/a>, business planners can discern which offices have enough workers who are likely to become delivery customers. Once a supermarket chooses its office locker locations, the technology can suggest the best distribution routes for food, while providing operational awareness about when and how the lockers are being used.\u00a0A GIS dashboard can even alert managers to issues related to temperature control or other anomalies.\r\n\r\nWhile the trend of office grocery delivery is new, the primary methods enabling it are not. GIS-based <a href=\"https:\/\/www.esri.com\/en-us\/industries\/needs\/site-analysis-territory-planning\">site selection<\/a> and delivery execution are core to any retail expansion. Such techniques can uncover a reliable network of customers and provide a plan for getting goods to them, efficiently and profitably.\r\n<h3><strong>Office Grocery Delivery and the Industry\u2019s Swift Shift<\/strong><\/h3>\r\nLowes\u2019 office-based delivery service isn\u2019t without precedent. In 2019, the\u00a0<a href=\"https:\/\/www.grocerydive.com\/news\/hy-vee-expands-pickup-lockers-program\/551831\/\">Hy-Vee<\/a>\u00a0chain\u00a0established grocery lockers\u00a0for employees of hospitals\u00a0in Iowa and South Dakota. In 2017, Peapod had a short-lived\u00a0experiment\u00a0putting refrigerated lockers in Washington, DC, Metro stations for consumers to pick up orders during their commute."},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"A biweekly email connecting senior executives and business leaders with thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"Scott\u00a0DeGraeve, a former executive with Peapod and now COO of e-commerce firm\u00a0Locai\u00a0Solutions, <a href=\"https:\/\/www.grocerydive.com\/news\/how-grocery-pickup-is-evolving\/562718\/\"><em>told Grocery Dive<\/em>\u00a0<\/a>that the success of innovations such as grocery lockers relies on location and speed. Off-site lockers, he says, need to be in heavily trafficked areas while staying close to fulfillment centers\u00a0so that workers can stock them successfully and cost-effectively.\r\n\r\nThat means choreographing a complex\u2014and location-driven\u2014dance involving stores, vendors,\u00a0and workers to ensure\u00a0that the initiative is\u00a0boosting the bottom line in a razor-thin-margin industry.\r\n\r\nGIS can eliminate guesswork by showing where anonymous groups of people are spending their time and when. A grocery executive can use GIS to analyze anonymized foot traffic data showing activity at prospective office locations. That intel can be paired with data about demographics and psychographics, and the information can be layered onto a map showing where it might be wise to invest in a locker location.\r\n\r\nThe analysis is not unlike an employer <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/workforce-analysis-post-covid-19\/\">assessing the talent pool<\/a> near a possible office location. In that scenario, <a href=\"https:\/\/www.esri.com\/about\/newsroom\/?s=&amp;category_name=wherenext-profiles\">a GIS analyst<\/a> can provide insight on demographics, academic degrees, and career tracts of the local population, along with \u00a0commute times and amenities that appeal to employees. The result is a <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/ceo-guide-to-location-intelligence\/\">decision-support tool<\/a> for choosing the best locations.\r\n\r\nFor office grocery delivery, selecting ideal sites is the first step. Ensuring that goods can be cost-effectively ferried from nearby stores or distribution centers is the next step. In that analysis, proximity and response times matter, and those factors are clearly visible on maps. GIS technology already creates the fastest routes for package delivery companies<a href=\"https:\/\/www.esri.com\/about\/newsroom\/podcast\/how-ups-strengthens-customer-connection-with-spatial-analytics\/\"> such as UPS<\/a>, creating routes that keep costs low, goods fresh, and truck emissions to a minimum.\r\n\r\nOther industries have followed their lead, from <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/healthcare-delivery-optimization\/\">health care<\/a> to high-tech manufacturers.\r\n<h3><strong>Using Location Insight from Locker to Table<\/strong><\/h3>\r\nHow will stores manage the complicated\u00a0process of delivering groceries to shoppers where they work? One leading technology company offers clues. With a presence in more than 130 countries, the firm keeps\u00a0spare parts and technicians near customers\u00a0in case a critical fix is needed within a four-hour window.\u00a0To monitor it all, the company\u00a0<a href=\"https:\/\/www.esri.com\/en-us\/lg\/publications\/finding-business-value-in-the-digital-twin\">uses a GIS-based digital twin of its operations<\/a>. Analyzing customer\u00a0locations and drive times, the system automatically assigns customers to the best warehouse location\u00a0to fulfill part demand.\r\n\r\nFor grocers, location intelligence can help determine where best to serve office workers when planning the positions of lockers and fulfillment centers.\u00a0One twist with office grocery delivery is the potential for office professionals to be working hybrid schedules. Here again, anonymous human-movement data\u00a0on a GIS smart map illustrates the ebb and flow of office activity, helping grocery executives adjust delivery and staffing schedules as well as routes.\r\n\r\nThis level of location intelligence could produce a recommended distribution radius based on delivery frequency, refrigeration needs, and the travel time of trucks moving between lockers and fulfillment centers.\r\n\r\nIf\u2014like many of today\u2019s <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/vending-machine-trend\/\">intelligent vending machines<\/a>\u2014lockers are equipped with sensors or customer feedback devices, operations managers can monitor a location-based dashboard\u00a0showing usage patterns, alerts, and pending deliveries.\r\n\r\nWhen all those pieces come together efficiently,\u00a0the grocer will have an effective new service offering and an office worker will have dinner and milk for the morning, all before leaving the office."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Office Grocery Delivery Gains Traction among Shoppers<\/title>\n<meta name=\"description\" content=\"Office grocery deliveries are among the latest innovations in the push to meet consumers in convenient places.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/office-grocery-delivery\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delivery Innovation: Groceries at the Office\" \/>\n<meta property=\"og:description\" content=\"Office grocery deliveries are among the latest innovations in the push to meet consumers in convenient 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