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Italy is now part of the market where e-commerce has become a source of revenue that is no longer negligible: an increasing number of companies compete in a market which, at the end of 2016 (source: Politecnico di Milano B2C Netcomm eCommerce Observatory), was worth approximately 20 billion euros. Significant growth has been consolidated in the food and grocery sector (+29%, equivalent to just over 530 million euros) in which the food component represents 90% of the turnover of the entire sector (519 million euros).
In this context, Selex made the decision to launch the new e-commerce channel for its customers. The model selected for the launch is based on the preparation of grocery shopping orders at the point of sale (InStore) and delivery to the customer at the physical store (Click&Collect). This format benefits from wide geographical coverage, taking advantage of the widespread presence of Selex stores (in 1,700 municipalities). Selex’s investment roadmap in this sphere provides for the implementation of new operating models, with the sole purpose of continuing to meet the needs of customers as closely as possible.
The solution launched on Selex Gruppo Commerciale is the InStore version of SideUp Reply Pick&Pack, included in SideUp Reply™’s software as a service suite. The service is focused on the management of operational activities relating to the preparation of purchase orders coming from the e-commerce platform through a web services interface.
The solution guides the operator in the preparation of one or more concurrent orders with the support of wearable terminals. The completed orders are brought into the pickup area, arranged according to product temperature (room temperature, fresh, frozen), where they await the arrival of customers, who authenticate themselves via a totem. A special feature of the system involves having the ability, during the picking stage, to manage products that require some type of processing (for example, deli products that require cutting), or variable weight products (for example, items in the fruit and vegetable section) and, in the case of missing items, provided that the customer has agreed, to offer substitute products at the time the order is delivered to the customer. SideUp Reply Pick&Pack also supports the use of voice technology, as well as Pick/Put-to-light systems and includes a standard interface to all major e-commerce platforms (SAP Hybris, Magento, DemandWare, etc.).
The value recognised by the customer with respect to Logistics Reply covers a number of themes. The Cloud-based software as a service solution has made it possible to implement the project in just 3 months. Selex was able to implement a centralised technology platform to offer the service to all Group brands, without imposing any limitations on each in terms of the opportunity to customise offers, service levels or delivery time slots.
Each new brand can launch the service at their first store within a few weeks, and at subsequent stores in just a few days. Moreover, the SideUp ReplyTM suite also supports process management in Dark Store mode and, by activating the SideUp Reply Delivery module, the logistic process can be extended up to delivery to the customer's home (last mile). The project team put together by Logistics Reply demonstrated expertise, experience and in collaboration with Selex, successfully overcame the challenge of launching the e-commerce service in just three months, from the start of the project to delivery of the solution to the first customer.
Selex Gruppo Commerciale was founded more than 50 years ago (1964) through the Italian A&O voluntary merger of a group of food wholesalers. Today, the Group ranks third among leading modern distribution operators and consists of 15 independent Italian retail and wholesale enterprises operating as a national central entity.
Selex has a multichannel presence throughout Italy. The Group’s sales network, consisting of 2,516 stores and totalling over 2 million square metres of sales area, in fact includes various modern distribution channels, from hypermarkets to mini-markets. Thanks to the ample range of offers, Selex can take advantage of a widespread presence across the Italian Peninsula, with sales outlets in 90 provinces and in more than 1,700 municipalities.
In 2016, Selex recorded a turnover of 10,350 million euros, an increase of 4% compared to 2015.
Today, the Group consists of more than 31,000 employees, more than 90% of whom are permanent employees. Another key characteristic of the Selex Group is the direct control of the sales network. 86% of turnover is in fact generated by facilities managed directly by Members operating across the Italian territory, while the remaining 14% is attributable to affiliations (mini-markets and small stores branded under the A&O name, the Group’s historical brand).
Logistics Reply is the Reply Group company leader in the provision of advanced Supply Chain Execution solutions, developed with its proprietary Click Reply™ and SideUp Reply™ suites using the latest technologies available.
Click Reply™ is a solution that can be deployed on-premises or in-cloud, while SideUp Reply™ is a multi-tenant SaaS solution based on the cloud computing technology.
The SideUp Reply Suite was introduced in 2010 with the launch of the warehouse management module. Since then, the product has continued to grow and today includes various modules focused on Visibility and Efficiency.