Having worked for Europe’s largest and most profitable food home delivery business (measured by annual deliveries, revenues earned and net profit) I understand the mechanisms required to develop profitable home-delivery.
All of the UK major supermarkets now have some home delivery or click and collect presence and yet they do not report on the profitability of the home-delivery aspect of their business. Is it because it has become a cost centre rather than as originally planned a further profitable route to market?
In some ways the industry leader is Ocado. It has delivered some impressive results, although profit is not one of them! The volume of daily deliveries and the average delivery value (over £100) are UK industry leading values however they have posted a tiny profit in only 1 of their 12 years of trading.
Why do they not make profits? Especially as the European business makes substantial profits on an average basket value of €38
How can it be done? I know how they do it and I know that their techniques are transferable to other home delivery businesses. I can:
Assess your business model
Amend that model (if required) and using my European knowledge, drive bottom line profitability.
Develop KPIs for your business, build those into the Management Information Pack and coach managers on profitable home-delivery techniques.