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10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 1
Retail Logistics; Let Fresh Rule!
April 10th 2014, Joost Snels
Surprise
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 2
Consumer trends: healthy
Consumer trend: luxury life style
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J. Snels
© Wageningen UR Food & Biobased Research 3
Consumer trends: new / exotic
Consumer trends: convenience
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J. Snels
© Wageningen UR Food & Biobased Research 4
Fresh rules: Consumer trends
Consumer perception
Fresh = tastier and healthier
Fresh rules: retailer
�Best differentiator category for retailers
�Enabler of retailer profits
Shift from dry, frozen, canned to fresh and convenient
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J. Snels
© Wageningen UR Food & Biobased Research 5
Where do we buy our fresh food? � Retail
2007 2008 2009 2010 2011 2012
Meat 70% 73% - 75% 77% -
Drinks/Soda 75% 70% - 73% 74% -
Fresh Fruits & Vegetables 74% 76% - 76% 77% -
Milk & Dairy 90% 88% - 92% 91% -
Bread(products) & rusk 65% 65% - 64% 66% -
Biscuits, cakes and pastries 60% 64% - 59% 58% -
Tobacco 39% 42% 46% 48% 47% -
Drugstore items 29% 29% 30% 30% 30% 30%
Detergents and cleaning products 67% 67% - 67% 64% -
Self-care and medicines 6% 8% 9% 9% 10% 10%
Textiles and 2% 1% - 2% 2% -
Newspapers & magazines 51% 49% - 42% 42% -
So
urc
e: H
BD
, en
CB
S (
tab
ak),
IMS
Hea
lth
(zel
fzo
rg) e
n N
iels
en(d
rog
iste
rija
rtik
elen
)
Marktaandelen voor 2012 ontbreken helaas voor de meeste productgroepen. Naar verwachting volgen in 2014 wel cijfers over 2013. (Bijgewerkt 26 november 2013)
Why retail focuses on Fresh? � Growth
� Market share fresh retail still growing
� Fresh in total retail turnover still growing
Source: GfK 2012 | GfK Jaarcongres 2012 Vers | September 2012
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J. Snels
© Wageningen UR Food & Biobased Research 6
Why retail focuses on Fresh? � Traffic
� When the retailer has a bad fresh food section, this is a reason for me to shop anywhere else
� Yes 68%
Source: GfK 2012 | GfK Jaarcongres 2012 Vers | September 2012
Why logistics? � Enabler
Right Product
Right Time
Right Place
Right amount
Optimal cost
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J. Snels
© Wageningen UR Food & Biobased Research 7
Product: quality / Freshness
Source: GfK 2012 | GfK Jaarcongres 2012 Vers | September 2012
Less important Average Important
Qu
ali
ty /
Fresh
ness
� Right Product
� Right Time
� Right Place
� Right amount
Opslag en Transport Houdbaarheid
Acceptatiegrens
Coping with differences in quality
0
2
4
6
8
10
12
0 2 4 6 8 10 12 14 16
Time (days)
Qu
alit
y sc
ore
Acceptance level
Quality / Freshness� Right Product
� Right Time
� Right Place
� Right amount
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J. Snels
© Wageningen UR Food & Biobased Research 8
Logistics: temperature
Arrival DC Arrival Store
ShelfDeparture
� Right Product
� Right Time
� Right Place
� Right amount
Right time?
� Ready-to-eat
� Ready-to-eat tomorrow
� Ready-to-eat-dd:mm:2014
� Ripe-on-arrival
� Ripe-on-dd:mm:2014
� Ready-to-go
� Right Product
� Right Time
� Right Place
� Right amount
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J. Snels
© Wageningen UR Food & Biobased Research 9
Product & Time
Manipulating ripeness
0
2
4
6
8
0 5 10 15 20
time (days)
ethy
lene
pro
duct
ion
ON
OFF
-20
0
20
40
60
0 5 10 15 20
time (days)
Col
or
OFF
ON
Avocado
Tomato
Banana
� Right Product
� Right Time
� Right Place
� Right amount
Supermarket within walking distance to most
Dutch consumers
Average number of other shops for groceries within 1 km., by neighborhood
Average distance to supermarket, by province
� Right Product
� Right Time
� Right Place
� Right amount
� Optimal cost
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J. Snels
© Wageningen UR Food & Biobased Research 10
Where do we find the supermarkets?
� Central commercial area within cities or main shopping areas with more than 100 stores
� Neighborhood and community shopping centers, district centers and inner-city shopping
� Individual retail outlets, shopping centers on urban peripheries Sourc
e:
ABN
-AM
RO
“Reta
illo
caties in 2
020.
De n
ieuw
e w
inkelk
aart
van N
ederland”(
2013)
�Mostly within the city centre
� Right Product
� Right Time
� Right Place
� Right amount
Inner city delivery
� Time frames
� One stop delivery
� Combined distribution
● Ambient
● Cooled
● Frozen
� Right Product
� Right Time
� Right Place
� Right amount
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J. Snels
© Wageningen UR Food & Biobased Research 11
Multi channel / Online
� Pick-up points at the supermarkets
� Pick-up points ‘other’ locations
� Home delivery
� Right Product
� Right Time
� Right Place
� Right amount
Source: logistiek.nl
Pick-up points
The biggest challenge is in the range of fresh products. That's a total different
story than dry groceries. Dat zie je ook aan de initiatieven die gestart en ook weer gestopt zijn. Alle business
cases uit het verleden hebben we op onderdelen bekeken, maar door een totaal boodschappenassortiment, inclusief vers,
aan te bieden zijn we wel uniek. I am confident that our products are fresher, because the
products have a shorter lead time than at a regular grocery store. De voorraad in ons
Order Pick Centrum (OPC) van Hollander in Barendrecht is minimaal en ingericht op de dagelijkse vraag van consumenten.
In the supply chain is place for the supermarket where products lay often a
few days on shelves where temperature changes", aldus Niemansverdriet.
� Right Product
� Right Time
� Right Place
� Right amount
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 12
Pick-up points
The biggest challenge is in the range of fresh products. That's a total different
story than dry groceries. Dat zie je ook aan de initiatieven die gestart en ook weer gestopt zijn. Alle business
cases uit het verleden hebben we op onderdelen bekeken, maar door een totaal boodschappenassortiment, inclusief vers,
aan te bieden zijn we wel uniek. I am confident that our products are fresher, because the
products have a shorter lead time than at a regular grocery store. De voorraad in ons
Order Pick Centrum (OPC) van Hollander in Barendrecht is minimaal en ingericht op de dagelijkse vraag van consumenten.
In the supply chain is place for the supermarket where products lay often a
few days on shelves where temperature changes", aldus Niemansverdriet.
� Right Product
� Right Time
� Right Place
� Right amount
Multi channel
� Same principle at AH to go-
stores at railway stations
and city centres.
� Due to speed and
responsiveness of the Albert
Heijn logistics chain they
can sell super fresh
sandwiches at an attractive
margin at AH to Go
� Right Product
� Right Time
� Right Place
� Right amount
€0,40 €1,50 €2,50
Source: logistiek.nl
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 13
Wastage vs. Out-of-Stock
Out-of-Stock Wastage Out-of-Stock Wastage
Out-of-Stock Wastage
� Right Product
� Right Time
� Right Place
� Right amount
Selective shoppers
� Consumer shops Last In First Out
� Actual stock ≠ Products on the shelf
� Wastage / Best-Before-Data as part of ordering policy
� Right Product
� Right Time
� Right Place
� Right amount
According to administration After best-before-date check
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 14
AH ‘kies & kook’ meals
� “One of the main reasons why Albert Heijn is going to stop with selling the K & K concept is that it frequently occurs that one out of four ingredients is missing. Consequently, the whole sales concept does not work”, said a spokesman for AH.
� Right Product
� Right Time
� Right Place
� Right amount
1
2
3
4
Source: De Laatstemeter
Kokkerellen Aviko
Solution:
Staple meal components
together
� Right Product
� Right Time
� Right Place
� Right amount
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 15
Retail = Fresh = Logistics = Retail
Retail Logistics; Let Fresh Rule!
Fresh already rules, logistics has to enable this!
≠
≠
10/04/2014
J. Snels
© Wageningen UR Food & Biobased Research 16
Thanks
Retail
Fresh
Logistics
