Sainsbury’s unveils Chop Chop 1-hour delivery app
The UK’s second-largest supermarket chain has started testing a new app which promises a one hour delivery service within a three kilometre radius of a store.
Sainsbury’s has launched Chop Chop in the London borough of Wandsworth. Shoppers can order up to 20 items and pay £4.99 to have them delivered within the hour, using an app on Apple devices.
The service is similar to that available to Amazon Prime customers, who can choose from a range of 15,000 items to be delivered to them within an hour for £6.99, or for nothing with a choice of two-hour same-day slots.
The US e-commerce giant has also stepped into the groceries market with AmazonFresh, which places pressure on the likes of Sainsbury’s to offer equally effective delivery services.
Its CEO Mike Coupe told analysts at Bernstein that the company sees potential for a rapid delivery service, and believes that it has the infrastructure around the country, with many large stores stocking big fresh food ranges, to cater for the demand.
Sainsbury’s recently announced it has invested in high-tech liquid nitrogen delivery trucks, a move set to strengthen its supply chain capabilities ahead of what surely will place extra strain on its network.
But what does the 1-hour delivery promise mean for supply chain operations? FJ Miller, co-founder and chairman at Liefery, explains some of the implications:
"If you ask consumers why they like the experience of online shopping, most people focus on the fact it’s a fast way to browse, requiring minimal effort. Rarely is the delivery a key selling point – it is typically viewed as the least reliable part of the purchase process. The reality is people no longer want to wait up to a week to receive something they have purchased online, and Sainsbury’s new one-hour delivery app is a direct response to this trend we’re seeing in consumer demand, following in the footsteps of Amazon Prime.
"That kind of last mile offer is becoming a differentiator in the service experience and has to be managed with special care. While especially new last-mile logistics providers are focusing on and specialising in this service experience, it often remains a big challenge for retailers to change existing mindsets and supply chain processes. For example, Sainsbury’s will have to ensure real-time product transparency (also at local outlets), very flexible picking and hand-over processes and the latest technology to make sure their deliveries run, not just on time, but as smoothly as possible. They may need to invest in tools that assist with every stage of the delivery, from order handover, to guarantee a real service experience."
DHL Claim Multi-Sector Collaboration Key to Fighting COVID
Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.
This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go.
With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”.
Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats.
In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.
“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”.
How Do We Sustain Immunisation?
By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”.
Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared.
Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.