The food and beverage retail industry is at a crossroads. As retailer expectations for quicker, fresher deliveries intensify, traditional last mile delivery methods are struggling to keep pace. HDS co-founder, Shane Hodskiss, discusses the supply chain logistics company's approach to industry challenges.
Today’s standard practices are increasingly seen as outdated and archaic, often resulting in inefficiencies, higher costs and a lack of precision that affects both retailers and consumers. At HDS, we’re addressing these challenges with a revolutionary approach that slashes logistics costs and delivers with precision that’s second to none.
The outdated model: inefficiencies and high costs
The current state of last mile delivery in the food retail sector is plagued by inefficiencies and skyrocketing costs. The processes that most companies implement today just don't cut it. They rely on fragmented logistics, with multiple single-item deliveries to each location. This approach not only drives up operational expenses but also overwhelms retail staff with constant deliveries, pulling them away from what really matters – serving customers.
In addition, the reliance on third-party distributors adds another layer of cost. Distributors take a margin that further inflates the price of goods, impacting the bottom line for both manufacturers and retailers. On top of that, traditional routing models, while functional, lack the precision needed to optimise fuel efficiency and reduce driver time, leading to higher operational costs and slower service.
Our approach: efficiency and savings redefined
At HDS, we’ve reimagined last mile delivery with technology-driven solutions that tackle these problems head-on. Our AI-driven delivery routing technology is a game-changer, optimising routes in real-time to ensure maximum fuel efficiency and minimal driver time. This innovation not only reduces fuel consumption but also lowers labour costs, offering significant savings for retailers.
Our approach to consolidating freight at the depot level boosts cost efficiency even further. Instead of executing numerous single-item deliveries to the same location, we consolidate freight into one comprehensive delivery per store, reducing drop costs for our clients significantly, and improving efficiency, whereby retail staff can concentrate on customer service rather than managing multiple deliveries throughout the day or week.
Precision delivery: a new standard
Precision is crucial in last mile delivery, especially for temperature-sensitive goods, yet the outdated systems many companies still rely on often fall short, resulting in costly and frustrating losses. At HDS, we’re tackling this issue with a delivery system akin to Uber’s pin-drop accuracy.
Our technology creates highly accurate delivery profiles for each location, allowing recipients to input specific instructions and even provide photos of the exact drop-off point. This attention to detail has led to significantly higher satisfaction rates and significantly reduced the risk of lost goods. With a DIFOT (Delivered In Full, On Time) rate above 99%, HDS has set a new industry benchmark for reliability, not only improving delivery accuracy but also providing valuable insights to help our clients optimise their supply chains.
Growing retail impact
HDS’s innovations are making waves in the food retail industry. Over the past six years, we’ve achieved $107 million in annual revenue, reflecting the strong demand for our solutions. Our partnerships with leading Australian food and beverage retailers – including BP, 7-Eleven, Marley Spoon, My Muscle Chef, Woolworths and Metcash – highlight the significant value we bring to the sector.
For food and beverage retailers, HDS offers a transformative solution that delivers faster, more reliable service while cutting operational costs. Our technology not only addresses the pain points of traditional delivery models but also sets new standards for efficiency and precision in last mile logistics.
