Scale to the Rescue for Online Explosion

Grocers using tech-based solutions to speed the online order fulfillment process—already providing efficiency advantages over manual alternatives—saw those benefits multiply along with the surge of online ordering that came with the coronavirus pandemic.

One such retailer, Albertsons Cos.’ United Supermarkets division in Lubbock, Texas, said an expansion from a four-store pilot using Thryve Fulfillment, an automated multi-picking solution, to 55 stores just prior to the pandemic’s onset in March helped those stores absorb a sudden demand spike that increased e-commerce orders from the chain by 250%.

“Managing the sudden and massive increase in order volume would not have been possible without the scalable ThryveAI software,” said Chris Farr, director of e-commerce for United Supermarkets.

ThryveAI is a relatively new name in the retail tech space but its roots are considerably deeper. It grew from the 2018 merger of the software company Mi9 and the parent of MyWebGrocer, the digital media company with a long history launching digital storefronts for retailers. Mi9, based in Miami, introduced Thryve earlier this year, including commerce, fulfillment, search management and merchandising features.

In an interview with WGB, Neil Moses, Mi9's CEO, called fulfillment technologies “the top of the to-do list” for retailers that might have been getting picking orders one at time back when e-commerce volumes were more manageable. “If you’re picking with a basic solution, like paper and a list, you’re getting 50 to 60 items per hour. Our solution will get you 150 items per hour.”

The benefit as COVID hit was multiplied as stores using analog solutions had three times the order volume—and then may have needed three times the employees, Moses explained. Those retailers that hired shoppers then left themselves vulnerable to unpredictable demand. “Having too much labor is a double whammy to efficiency,” Moses said.

Moses said Thryve Fulfillment is an app that orchestrates incoming orders and assigns an optimized “pick path,” increasing pick efficiency by three to five times. Pick routes—based on uploaded plan-o-grams from stores—and orders are displayed on a tablet or employee handheld device.

Artificial intelligence capabilities allow for the system to continuously learn and adapt throughout the day, Moses added. For example, when out-of-stocks and substitutions occur, they are fed back into the system, which automatically updates future orders. Picking waves can then be prioritized to maximize customer service while maintaining labor efficiency.

Stock information can be found on a dashboard that also provides visibility into picking efficiency, personal shopper productivity and order progress, Moses said.

United has made rapid progress in scaling e-commerce. In 2016, the chain offered a list-building solution for shoppers to plan their grocery lists, but shoppers could not order groceries online. A test with Thryve at four stores led to an expansion to 55 of its 95 locations and technologies with Thyrve, allowing stores to handle up to 1,400 online orders a week. In 2019, it moved to Thryve’s latest solution incorporating AI.

The chain is preparing for its next phase of growth, with plans to open new store locations, expand existing locations and roll out curbside pickup at 75% of their stores by 2023.