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Guestlecture Picnic

4 important questions on Guestlecture Picnic

What differs Picnic from traditional supermarkets?

delete supermarkets between warehouse and customers --> lower transportation costs + more flexible + timely

Why is the JIT - principle so important for Picnic's supply chain?

Just-in-time delivery is aimed at beginning of supply chain:
--> All products need high quality, because People can’t see the actual product all the time (pressure from market)

--> Pre-production of fresh products, like bread, is longer than order deadline, so Bakers have to start earlier than order deadline --> challenge: predicting the amount of items needed --> sometimes leads to waste and otherwise you are missing orders --> unsatisfied customers

Easier to traditional supermarket: we have very detailed customer data: what did customers ordered before: forecast models are very accurate.

This results in 70% reduce in foodwaste

Describe the fulfilment operations of Picnic

5 Warehouses (fulfilment centres) --> divided into ambient, frozen and chilled areas (just like a supermarket)

From these fulfilment centres a truck is driving to distribution centres. From there a EV’s are driving to customers as delivery window to customer is very short.

The package of the products are less important in the supply chain of picnic, because it is not displayed in a supermarket, it is more important how it fits in the supply chain.

Bioplastic bags --> not composible, is this the most sustainable option?

Bioplastic bags are used in totes to separate the goods from each other.

Describe Picnic's last mile delivery model "Buzzmodel".

Picnic --> Buzzmodel: given time slots per day (for example Monday 21:00 – 22:00h) --> less choices, but cheaper and more efficient (based on milkmen principle). Time slots do not change: same on weekly basis --> customers are familiarizing.

All complexity is in fulfilment centres, not in hubs