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State of the Industry Research

Increasing Online Profitability Through Strategic Fulfillment

Q3, 2023

There has been a notable transition in the grocery industry from primarily e-commerce, driven by the surge in demand during the pandemic, to an omnichannel approach. However, the profitability of digital grocery operations remains a challenge for the industry. Improving the profitability of digital operations requires grocers to focus their efforts on inventory management and fulfillment.

This report offers a comprehensive perspective on the importance of improving the strategic fulfillment capabilities of grocers to boost profitability. Also, offers insights for implementing effective strategic fulfillment strategies to enhance their overall competitiveness in the grocery industry.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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