Sean Coakley and Joe Lynch discuss a new model for grocery delivery. Sean is the Chief Commercial Officer of Capstone Logistics, a leading provider of technology-enabled warehouse services, freight management, and last mile distribution solutions.
About Sean Coakley
Sean Coakley is the Chief Commercial Officer of Capstone Logistics, a leading provider of technology-enabled warehouse services, freight management, and last mile distribution solutions. He is responsible for helping the company continue its rapid growth across its end-to-end logistics services offering. Previously, Sean held supply chain operations, design, consulting, and sales roles with companies such as EDS, Arthur Anderson, Ryder, and Kenco. He received his bachelor’s degree from Michigan State University and a master’s degree in International Business Administration from Central Michigan University.
About Capstone Logistics
Capstone Logistics is the leader in providing specialized, technology-enabled solutions for the most challenging supply chains. Powered by an interconnected platform, Capstone creates end-to-end efficiencies and cost-savings that help suppliers, distributors, and retailers exceed customer expectations. From performance-driven labor solutions to high-touch transportation and fulfillment, Capstone delivers the scale, accountability, and continuity that enables modern supply chains to compete in an ever-evolving environment.
Key Takeaways: A New Model for Grocery Delivery
- Sean Coakley is the Chief Commercial Officer of Capstone Logistics, a leading provider of technology-enabled warehouse services, freight management, and last mile distribution solutions.
- In the podcast interview, Sean and Joe discuss the new model for grocery delivery, which might also be called the “revenge of the retailers.”
- Prior to the pandemic, grocery retailers were slowly dipping their toes into ecommerce and grocery delivery. The sales and associated infrastructure were very small.
- The pandemic changed everything for grocery retailers – suddenly, consumers wanted to order their groceries online and get them delivered.
- Many grocery retailers didn’t have their own ecommerce sites, fulfillment, and delivery services.
- Enter the grocery delivery services like Shipt, Instacart, and others who provide a ready-made solution for the grocery delivery challenge. These companies provide the consumer interface, ecommerce technology, integrations, and personal shoppers perfect for grocery retailers who wanted to accommodate their house-bound customers.
- Consumers loved it – a record amount of consumers took advantage of this wonderful new service.
- Grocery shopping will never be the same and research suggests that 20% of groceries will be sold online by 2025.
- The only problem is grocery retailers don’t like it. They no longer have a direct relationship with their customers who use the grocery apps. They also lose control of the data and the customer experience. Worst of all, many grocery retailers lose money on home delivery transactions.
- A new model for grocery delivery has emerged. Grocery retailers are creating their own ecommerce sites and partnering with logistics companies to manage fulfillment and delivery.
- The new model has promise because grocery retailers will own the customer relationship and experience along with valuable data and insights. Best of all, grocery stores can be profitable on their fastest growing customer segment – home delivery.
- Additionally, the logistics providers will optimize the fulfillment and delivery service under a white label service. All communication, personnel, and vehicles carry the grocery store brand.
- Capstone’s Last Mile service has the operational expertise and technology that gives grocery retailers an advantage over crowd-sourced delivery apps. Their solutions enhance the customer experience and give retailers more control, increased efficiency, and improved profitability.