The Grocer

LCP’s Emile Naus comments on ‘What does the Internet of Things have in store for grocers’ – and specifically the impact on the supply chain.

“For grocery retailers to get to a point where they are able to target the customers on an individual basis, with tailored offers and services, they need more flexibility and control in their supply chains.

The IoT will help achieve this, while also keeping costs down, says Emile Naus, technical director and partner at supply chain experts LCP Consulting.

Arguably the supply chain is already pioneering the IoT in retail. Satellite tracking of trucks and internet-enabled telemetry are allowing supply chain managers to understand the precise location of their vehicles, optimise routes and improve driving standards, Naus says.

New technologies will soon allow even more detailed management of the supply chain, he adds. Radio frequency identification (RFID) tags on pallets or individual items will tell retailers exactly where an item is, greatly enhancing service, he says.

“Today, when you have an online order, if you have not got it in stock it means you cannot provide the item. You might think it could arrive in time, but you’re not sure, so you cannot take the order. In future, you might have something that says: ‘I know I don’t have it now, but I know it is on its way and we will have it in four hours’. That means you can take the order because within the lead time you can pick it and ship it.”

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