With the advancement and consolidation of changes in habits provided by the Covid-19 pandemic, the search for a better level of service delivered to the customer intensifies. In times of crisis, in which consumers' purchasing power is reduced, innovation is a key to outperforming the market during and after a crisis.
Figure 1 – Comparison of the total return to shareholders of BCG's portfolio of most innovative companies compared to the MSCI World index. Source: BCG
Innovations are also reaching inventory management to provide a better level of service to customers, with greater agility and availability.
A modality that has existed for some time, and which more and more companies are adhering to, is the online purchase and collection service called BOPIS (Buy Online, Pickup In Store). According to Global Shopper Trends Report 2019 survey, 81,4% of global consumers reported ordering items online for in-store pickup, up nearly 30% from the previous year's survey. According to Valor Investe, last year, around 20% of the companies that also sell via the internet already offered collection at their physical stores.
In addition to the advantage of using stock in physical stores for e-commerce and reducing the last mile cost for companies, there is also the benefit of increasing sales at the point of delivery. Customers often end up buying other products when they go to the store to pick up what they ordered online.
Even companies that do not have physical stores can join this modality through a partnership. Wine, the largest wine club in the world, and Pegaki, the first network of collection points, have entered into a partnership to offer Wine customers the option of collection at accredited points. In this case, the benefit for the company is a reduction in the last mile cost, improved flexibility for the customer and a reduction in delivery failures.
Another option to improve the customer experience without impacting inventory management is the Guide Shop. The Guide Shop is a kind of showroom for e-commerce, through which the customer can see and try the products in a physical store, make the purchase and then receive it at home. Guide Shop provides a better shopping experience, lower return rates and greater customer interaction.
This kind of concept store is a bet for fashion and decoration companies. Some companies that are betting on this model are Amaro, Basic, Oppa and Westwing.
Another model that gained strength mainly due to the pandemic was the drive-thru in mall parking lots. In this modality, the customer buys via WhatsApp from a specific store in the mall and picks up the product in the mall's parking lot. For example, a mall in Botucatu went so far as to open the aisles of the stores for cars to pass through the stores. This news reverberated internationally and the case became a legal dispute. O unusual service only worked for a weekend in July, and then it was transferred to the parking area.
In view of the analysis of the current scenario, it can be concluded that, in times of crisis, companies have sought to deliver a better level of customer service as a way to differentiate themselves in the market.
To stay connected to this and many other Logistics and Supply Chain topics, join the International Supply Chain Forum, organized by ILOS. This year the Forum is in its 26th edition and will take place 100% online for the first time, between the 13th and 15th of October.
