Retail Leader - May/June 2018 - 18

> SUPPLY CHAIN
Walmart expects
to offer home delivery
to 40 percent of U.S.
households by year-end,
in addition to grocery
pick up service at 2,200
locations.

can give a delivery
person access to
a key to open the
trunk and place a
package inside.
"We turn the car
trunk into a mobile
locker," said Charlene Consolacion,
Co-Founder and
CEO of Phrame.
Granting a
delivery person
access to a vehicle is
one of those things
that would have
sounded crazy a
few years ago, and
maybe still does to
most people today.
However, availability of such services
shows how quickly consumer behavior can change
when presented with fulfillment solutions that over
time become the new normal.
"People want to be able to accept packages when
they are not home," said Herve Letourneur, Vice Preident of Products with August Home, a company that
make a smartphone controllable lock that fits over a
homeowner's existing deadbolt. The technology gives
delivery people access to place packages inside the
home, a use case widely thought to be one of the motivators behind Amazon's decision to acquire Ring, a
manufacturer of doorbells that gives users the ability
remotely monitor video to see who is at their door.
"No one wants to have Amazon or Walmart own
their lock. We provide universal access to about
200,000 homes," Letourneur said.
He adds that, "a lot of customers are not comfortable with this yet," but the same thing was said five
years ago about home rental and ride sharing services.
"It's all coming."
The other thing that's coming is autonomous delivery vehicles. The business case is simply too strong
and the technology is advancing too quickly for it
not to happen. That is the view of Daniel Laury,
CEO of Udelv.
His company has been testing a vehicle in the
neighborhoods of San Mateo, about halfway between
San Francisco and San Jose, that makes deliveries from the upscale Draeger's supermarket. Since
18

Retail Leader.com MAY/JUNE 2018

launching in early 2018, the orange Udelv vehicle had
made more than 100 deliveries by April which was
good enough for Laury to order a second vehicle.
"Autonomous delivery vehicles will dramatically
cut the delivery cost and significantly enhance the
customer experience," Laury said.
The problem Udelv solves for retailers is cost and
for retail customers it is convenience. Laury said the
driver is the largest component of delivery cost, accounting for roughly 65 percent, followed by fuel at
10 percent depending on gas prices. An autonomous
electric vehicle address both because, "you are guaranteed to save half the cost if you replace the driver with
a computer and gas vehicles with electric vehicles."
From a customer experience standpoint, much like
with an Uber or Lyft driver, those expecting a delivery
can monitor the arrival of the vehicle on their phone.
Once the vehicle arrives curbside or in the driveway
the order is retrieved by unlocking the cargo area with
their smartphone.
"If after four minutes a customer hasn't retrieved
their order they are sent a push notification about
whether they would like to reschedule," Laury said.
"This is not science fiction."
It only sounds like it is, which is something retailers
should be used to by now as innovation continues at a
rapid pace. RL

A shopper at Home Depot ponders the purchase of a Ring
device. Amazon acquired the home security company in February
to address the supply chain challenge of unattended deliveries.


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Table of Contents for the Digital Edition of Retail Leader - May/June 2018

Contents
Retail Leader - May/June 2018 - Cover1
Retail Leader - May/June 2018 - Cover2
Retail Leader - May/June 2018 - 3
Retail Leader - May/June 2018 - Contents
Retail Leader - May/June 2018 - 5
Retail Leader - May/June 2018 - 6
Retail Leader - May/June 2018 - 7
Retail Leader - May/June 2018 - 8
Retail Leader - May/June 2018 - 9
Retail Leader - May/June 2018 - 10
Retail Leader - May/June 2018 - 11
Retail Leader - May/June 2018 - 12
Retail Leader - May/June 2018 - 13
Retail Leader - May/June 2018 - 14
Retail Leader - May/June 2018 - 15
Retail Leader - May/June 2018 - 16
Retail Leader - May/June 2018 - 17
Retail Leader - May/June 2018 - 18
Retail Leader - May/June 2018 - S1
Retail Leader - May/June 2018 - S2
Retail Leader - May/June 2018 - S3
Retail Leader - May/June 2018 - S4
Retail Leader - May/June 2018 - S5
Retail Leader - May/June 2018 - S6
Retail Leader - May/June 2018 - S7
Retail Leader - May/June 2018 - S8
Retail Leader - May/June 2018 - 19
Retail Leader - May/June 2018 - 20
Retail Leader - May/June 2018 - 21
Retail Leader - May/June 2018 - 22
Retail Leader - May/June 2018 - 23
Retail Leader - May/June 2018 - 24
Retail Leader - May/June 2018 - 25
Retail Leader - May/June 2018 - 26
Retail Leader - May/June 2018 - 27
Retail Leader - May/June 2018 - 28
Retail Leader - May/June 2018 - 29
Retail Leader - May/June 2018 - 30
Retail Leader - May/June 2018 - 31
Retail Leader - May/June 2018 - 32
Retail Leader - May/June 2018 - 33
Retail Leader - May/June 2018 - 34
Retail Leader - May/June 2018 - 35
Retail Leader - May/June 2018 - 36
Retail Leader - May/June 2018 - 37
Retail Leader - May/June 2018 - 38
Retail Leader - May/June 2018 - 39
Retail Leader - May/June 2018 - 40
Retail Leader - May/June 2018 - 41
Retail Leader - May/June 2018 - 42
Retail Leader - May/June 2018 - Cover3
Retail Leader - May/June 2018 - Cover4
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