How Lowes Foods Scaled Its Online Delivery Order Volume with Delivery Solutions
By Delivery Solutions
Lowes Foods is an industry leader in fast, convenient online shopping. Its flagship eCommerce guest engagement service, Lowes Foods To Go, helps guests locate products, scan barcodes, clip and redeem digital coupons and create pickup and delivery orders.
Despite a successful system, Lowes Foods always wants to streamline its processes. One opportunity was the technology infrastructure connecting it to its Delivery Service Providers (DSPs).
Before Delivery Solutions, Lowes Foods hand-managed each delivery provider. To scale more effectively, they needed a unified system.
- Integrate third-party delivery solutions providers
- Orchestrate last-mile delivery for 80+ stores operating throughout North Carolina, South Carolina, and Georgia
- Optimize provider based on a variety of factors, including drop-off day, time, and location
Chad Petersen, SVP of eCommerce at Lowes Foods, wanted guests to have a more seamless experience.
Lowes Foods wanted all of its service’s functionality to live under one roof—and it had to be user friendly and on-brand throughout the entire journey.
Chad said, “We wanted to create a more consistent look, feel, and experience, where guests knew it was Lowes Foods that managed the experience end-to-end.”
Perhaps most importantly, Lowes Foods needed a turnkey solution.
“Every new delivery provider has its own set of APIs, integrations, and moving parts. I don’t have swaths of developers on hand to build custom integrations between all our systems and every new partner,” he said.
Lowes Foods needed an inclusive platform from a partner that would do the heavy lifting on coding and integration.
And that’s exactly what Delivery Solutions provided. “Delivery Solutions brought a unique set of capabilities and handled all the heavy-lifting of the actual integration.”
Delivery Solutions is helping Lowes Foods scale up its last-mile delivery with a focus on quality and consistency.
The unified platform equips Lowes Foods with centralized, robust Delivery Service Provider options that service each area.
Being able to quickly and easily bring in new DSPs was an immediate win for Lowes Foods.
Chad explained, “It’s easy to onboard a new 3PL now, which massively reduces the cost and effort involved in integration.
Delivery Solutions handles the heavy lift with providers, so we can focus on the services we provide."
Through our unified platform, Lowes Foods can set up orchestration rules that automatically optimize preferred delivery providers for each store and region. Special weight is given to the projected delivery date and time, to ensure guests get their orders as quickly and efficiently as possible.
With all delivery providers now managed from inside a centralized hub, Lowes Foods reduces operational time and costs—and orchestrates deliveries more seamlessly.
Chad said, “If we make a decision to switch providers in a certain region, Delivery Solutions’ toolset makes it easy. We lightly reconfigure the dashboard and we’re switched over.”
The Delivery Solutions platform also provides them with a white-labeled (Lowes Foods branded), hosted, real-time tracking page for guests, which Lowes Foods can send via email or SMS. This enables guests to track deliveries and engage their DSP in one seamless loop—no platform-hopping required.
Chad said, “Guests receive automatic notifications of who their driver is, what vehicle they’re driving, what time it will arrive, plus a map to track its exact location, all with Lowes Foods branding. It’s been a great addition to remove a key friction point for our guests as we continue to grow delivery.”
During implementation, Delivery Solutions’ team members visited multiple stores to ensure the resulting digital delivery experience perfectly matched the brand.
Delivery Solutions platform also includes built-in analytics, which help Lowes Foods drive further operational efficiencies. This adds extra scope to the other performance insights that Lowes Foods was already collecting, and enables teams to glue DSP performance to volume and revenue.
Chad said, “Our operations team and technology team are increasingly digging into our KPIs and leveraging Delivery Solutions’ data tools to succeed.”
“Delivery Solutions creates a turnkey infrastructure, making it easy to switch between providers, which is a critical enablement mechanism for our business.”
Now that Lowes Foods has streamlined last-mile delivery, orders are fulfilled faster and guests enjoy a more consistent experience. Ultimately, commitment to quality and service is what sets Lowes Foods apart in a competitive market.
As Chad said, “Building loyalty in this way is a critical aspect of revenue generation. If you can deliver orders on time, consistently, per expectations, and with quality, that builds trust, which all leads back to revenue.”
Another benefit comes in the form of time savings. Lowes Foods’ hosts used to hand-manage every DSP. If a driver was delayed, it was up to staff to resolve the issue.
Now, with better infrastructure in place, service recovery is automatic. The system “self-heals,” so if a driver accepts an order but has to cancel or something slows them down, the platform ensures continuity of that order and finds the next available driver automatically.
Chad said, “Delivery Solutions makes last-mile delivery almost painless. It’s alleviated a lot of spinning wheels, so we can focus on running, learning, and testing with the business.”
Today, Lowes Foods is able to better control its brand experience, fulfill orders faster and more efficiently, and differentiate itself in a competitive market.
Delivery Solutions’ platform is an important part of this process. Chad describes it as “an infrastructure to help glue together all of our 3PLs delivering products in different markets.”
He also calls it an “enablement mechanism for incremental revenue” because he can “easily go into new markets and enable delivery services.”
“We have a great team at Delivery Solutions. They’re focused on our business and deliver on their promises. That’s the ticket to success for Lowes Foods.”
Holly Hall, Managing Director, MACH Alliance
Lowes Food wanted to improve their customer experience
Reducing platform friction for guests
No bandwidth for complex implementations
Hassle-free implementation
Orchestration rules to improve guest UX
White labeling for consistent branding
Strategic insights fuel future optimizations
Scaling order fulfillment and building loyalty
Saving time to focus on running the business
Lowes improved UX, branding and strategy with Delivery Solutions
Unlocking future growth opportunities
Read more about how Delivery Solutions and Lowes Foods celebrate their partnership here.
This study was conducted in Fall 2023 as the fourth annual installment of a grocery ecommerce study that Ipsos has conducted since 2020. This study was designed to differentiate between three different fulfillment methods of obtaining grocery orders: In-Store Pick-up, Curbside Pickup and Delivery.
The approach was 2-pronged:
- Step 1: Ipsos conducted a 7-minute survey of 1,200 Americans to understand which elements of grocery pick-up and delivery are most important to consumers. The survey was conducted October 25, 2023. A Key Drivers Analysis was conducted to identify the top drivers of “Likelihood to Use Brand Again for grocery ecommerce” using Ipsos’ proprietary Ipsos Bayes Net (IBN) modelling technique.
- Step 2: Ipsos then deployed their panel of trained mystery shoppers to measure brand performance across a specific set of elements related to grocery pick-up and delivery. Roughly 33 mystery shops per method (In-store Pick-up, Curbside Pick-up, Home Delivery) were conducted for each qualifying retailer. Retailers were only shopped for methods they offered, so in some cases sample was redistributed appropriately across offered methods. Geographic representation was ensured across 4 regions (West, Midwest, Northeast, South). Mystery shops were fielded between October 23 – November 17, 2023. The relative importance of each service element ascertained from Step 1 was applied as a weighting factor to the Mystery Shopping results.
For a full copy of the results or to participate in Ipsos’ next ecommerce study (coming Fall 2024), contact Silvana Daehn at silvana.daehn@ipsos.com.