Lowes Foods taps orchestration partner for last-mile delivery

Lowes Foods is optimizing fulfillment of online grocery delivery orders with the help of an aggregation and orchestration platform from last-mile specialist Delivery Solutions.

With increased order volume through its Lowes Foods-To-Go service, Lowes sought a multi-provider solution to improve delivery coverage and performance and unit economics while enhancing the customer experience, according to Plano, Texas-based Delivery Solutions. Through Delivery Solutions’ intelligent orchestration engine and roster of same-day, parcel and middle-mile partners, Lowes now can automatically route orders to the delivery providers best-suited to meet the customer, store and order timelines.

“Delivery Solutions allows us to centralize and streamline our last-mile fulfillment and provide the best possible delivery experience for our guests,” Chad Petersen, vice president of e-commerce at Lowes Foods, said in a statement. A subsidiary of grocery distributor Alex Lee, Winston-Salem, N.C.-based Lowes operates 80 full-service supermarkets in the Carolinas and Virginia.

The orchestration platform already integrated with Lowes’ existing picking technology, from Applied Data Corp.’s ShopperKit, providing a smooth transition to offering same-day delivery, Delivery Solutions said. In addition, Delivery Solutions supported Lowes’ strategy of using “dark” fulfillment providers alongside popular third-party delivery partners such as Shipt, Instacart and DoorDash. The implementation also enabled Lowes to optimize batching for pooled distribution with cargo trucks and vans, offer special delivery to lockers within senior communities, make its full in-store aisle available online, and use specialized providers for alcohol and cold chain delivery.

Related:Lowes Foods plans new entertainment-themed store

Lowes has realized benefits on the front end as well. In partnering with Delivery Solutions, Lowes gained access to the tech provider’s white-label customer communications and real-time live tracking of orders, enabling the retailer to maintain control of the digital customer experience under its brand.

“Trust is paramount in the grocery e-commerce space. Retailers are not only responsible for safe, fresh and accurate orders, but they must find ways to communicate with their guests and make them aware of essential elements of the online journey,” Petersen explained. “Another key advantage is the control and scalability that the platform provides our internal business team, allowing us to scale providers, rates and geographies without a ‘heavy lift’ on coding or custom development.”

Related:Lowes Foods pilots grocery pickup lockers at the workplace

Plans call for Lowes to implement Delivery Solutions’ same-day delivery and post-purchase solutions across all stores offering online grocery service by the end of the year.

“We admire Lowes Food’s dedication to the communities it serves and are honored to help them provide the best possible fulfillment experience,” stated Arshaad Mirza, founder of Delivery Solutions. “Grocers with top omnichannel experiences are leading the way in the industry, and we’re proud to work with an innovator such as Lowes Foods. We look forward to continuing our strong partnership.” 

Other grocery retailers using Delivery Solutions’ technology include Price Chopper, Giant Eagle, Loblaws, Wakefern Food Corp. and United Supermarkets.