Transforming the Grocery Industry
“Logicbroker helped us overcome our internal IT barriers and illuminated a path to accelerate our vendor onboarding.”
Amber Roberts, Digital Marketplace Planning & Strategy, Kroger
Kroger is America’s largest grocery retailer and among the top 10 US eCommerce companies, focused on delivering their customers a first-class shopping experience while working to end hunger and eliminate food waste. To ensure success in the ultracompetitive grocery segment, Kroger is dedicated to creating a seamless shopping experience through expanded partnerships. To expand their product assortment online, Kroger selected to partner with Logicbroker to help enable a key strategic initiative.
While fulfillment and physical storefront improvements are a major focus, to compete with the growing marketplace ecosystem, Kroger wanted to complement their grocery offering with new products. They decided to achieve this through creating a drop ship program, and relying on third-party suppliers to fulfill the orders while maintaining Kroger’s high brand standards.
Implementing a drop ship program is an attractive business model, as retailers can effortlessly open up an endless aisle of inventory with no risk through working with third-party brands and suppliers (vendors). These vendors fulfill orders on behalf of the retailer, ensuring that there is no need to fill or expand warehouses with additional goods.
Kroger selected Logicbroker as the partner to launch their drop ship program due to their top-notch technology and ability to scale. With Logicbroker’s unparalleled support, expert team, and ability to apply learnings from other integrations to provide Kroger with recommendations based on changes in industry technology have been key in their ability to make this a simple launch. Logicbroker also had experience with most of the Kroger vendors and a team available for onboarding.
The program began with the onboarding of a pilot vendor. Upon successful testing and launch of the pilot vendor, the onboarding process was extended to the next wave of vendors. Kroger vendors benefit from the Logicbroker partnership, and what will help drive business, is the no-cost model for vendors. Vendors do not need to have a separate contract or pay fees directly to Logicbroker, as all transactions are done through Kroger.
Kroger also benefits from superior support, including a branded knowledgebase for Kroger employees and drop ship vendors, a dedicated support email distribution to enable Logicbroker to act as an extension of their team, and a dedicated technical resource to help with vendor onboarding and ongoing support.
The Kroger team enjoys high visibility to vendor performance and ensuring service level agreements (SLAs) are met. One feature in particular that was included into Logicbroker’s platform was the ability to have orders cancelled automatically after a specific period of time if they have not been fulfilled. Based on the timeframe as decided in Kroger’s SLAs, if an order has not been acknowledged by the vendor within that specified window of time, it is marked as cancelled and the vendor is then notified of the cancellation.
In working together, Logicbroker, Kroger and their vendors were able to launch a successful, automated drop ship program. Vendors enjoy the no-cost model Logicbroker offers them as well as the flexible communication options they can choose to integrate with. Sales have grown year over year, and new vendors are being added weekly.