 "Technology, developed in-house, has been our key differentiator: Milind Sharma")
We haven't outsourced the function. Our tech team is constantly working to make the app user-friendly, not only for our customers but also for the vendors that are connected with us, Milind Sharma tells Ritwik Sharma
Hyper-local businesses and food tech companies operate on thin margins and many are struggling to survive. What are you doing to ensure you don't end up like Localbanya?
The last few years have been quite crucial in deciding which hyper-local grocery delivery start-ups will survive and which will fail. With increasing reliance on the internet and adoption of smartphones, the customer has realised that there was no need to spend time going to the local supermarket, brave the crowds and parking hassles and come home to realise there were still items on the grocery list that weren't available. By marrying the convenience of online and the trust factor associated with local kirana stores, on-demand grocery delivery services have optimised their operations and driven supply chain efficiencies through a close-knit network of supporting partner retailers. The benefits of a wide variety, easy availability and home delivery have found many takers in the form of the time-strapped professional who'd rather buy grocery online. This gradual build-up of customer base has attracted the attention of venture capitalists, who have also recognised the potential this space holds. A combination of these has contributed to the growth of online hyper-local grocery delivery players.
What are the steps taken by PepperTap in its supply chain to ensure quality products, given they are largely perishable, to customers?
We carry out rigorous screening before we tie up with vendors. Before the onboarding of vendors, we ensure their offerings and service quality meets certain qualitative and quantitative benchmarks and fixed protocols. A thorough quality check is initiated at the supply chain stages to ensure pre-picking of only those products that make the cut. Then, we use special packaging and customised bags so that PepperTap grocery items retain their freshness in transit.
How have your ensured better customer interface at every touchpoint?
For starters, we haven't outsourced the process. Our technology is built and developed in-house with all the processes and handovers being connected through app-based technology. Our tech team is constantly working to make the app user-friendly, not only for our customers but also for the vendors that are connected with us.
We are the first ones in the hyper-local grocery delivery space to integrate the Live Chat feature. With this, customers can now enjoy a more engaging, interactive and instantaneous experience with the brand. By allowing customers to have their concerns addressed and queries answered by our staff in a jiffy, it greatly enhances their experience. By letting them chat with the brand representatives and getting an instant feedback, we want to tell them that if "your order doesn't have to wait for more than two hours, why should the assistance?"
Another recent feature we introduced is PepperCash that offers virtual in-app currency for the time-strapped shopper. With this, online shoppers can now get refunds for returned orders without any delay. This eliminates credit/debit related issues and makes online grocery shopping hassle-free.
We have also greatly improved the experience for vendors through our vendor app. We realise that our policies and technological edge have to be conducive for the professional and personal growth of all the vendors associated with our venture. So, we have equipped them to have a holistic understanding of their operations - in everyday terms and in the long run. By logging in, the business representative will be able to see a comprehensive picture of his performance with PepperTap. This in turn will allow him to take better decisions on stocks, quantities and inventory management. A vendor will be able to identify the top 100 best-selling products from his store.
What are the areas you stress at the back end to fulfil your promise of delivery of merchandise within two hours of ordering?
We focus on fill rates and on-time delivery. Our back-end staff has complete visibility of incoming orders. Apart from an extensive retail network, we have zeroed in on a couple of dark stores that are divided on the basis of geography. If a product is not available at the partner store that's within a three-five km radius, we count on the closest dark store. These dark stores are able to fulfil bulk orders with ease. We are working with five dark stores in the NCR while six more in Mumbai, Chennai, Bengaluru and Hyderabad are in the pipeline. PepperTap also guides these dark stores in expanding their product catalogue and building brand relations.
What are the critical factors and challenges in attracting retail partners?
Vendor onboarding was a challenge when we'd just launched. The vendors we contacted would tell us that they feared competition but this perception has changed in the past few months. They have realised the association with an e-commerce platform like ours helps them get more orders. The promise of higher sales and operational excellence has won us a string of retailers pan-India.
How do you ensure that you source the orders quickly? How easy is the access to warehouses and dark stores?
Partnering with more vendor stores/partner stores helps us source orders quickly. A lot of our partners have shown incredible amount of confidence in us and have opened dark stores in collaboration. With dedicated volumes, these dark stores are able to break even and make logistics work in their favour.
Hyper-local businesses and food tech companies operate on thin margins and many are struggling to survive. What are you doing to ensure you don't end up like Localbanya?
The last few years have been quite crucial in deciding which hyper-local grocery delivery start-ups will survive and which will fail. With increasing reliance on the internet and adoption of smartphones, the customer has realised that there was no need to spend time going to the local supermarket, brave the crowds and parking hassles and come home to realise there were still items on the grocery list that weren't available. By marrying the convenience of online and the trust factor associated with local kirana stores, on-demand grocery delivery services have optimised their operations and driven supply chain efficiencies through a close-knit network of supporting partner retailers. The benefits of a wide variety, easy availability and home delivery have found many takers in the form of the time-strapped professional who'd rather buy grocery online. This gradual build-up of customer base has attracted the attention of venture capitalists, who have also recognised the potential this space holds. A combination of these has contributed to the growth of online hyper-local grocery delivery players.
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On the vendor side, it offers the local grocer/mom-and-pop store owner a chance to expand his/her horizon and reach out to a larger audience by associating with an e-commerce portal. It also gives them insights into managing their inventory of perishable goods better by giving them an estimate of the highest and lowest selling product categories. By boosting sales and understanding of customer behaviour, it has encouraged them to shed inhibitions and make an entry into digital space.
What are the steps taken by PepperTap in its supply chain to ensure quality products, given they are largely perishable, to customers?
We carry out rigorous screening before we tie up with vendors. Before the onboarding of vendors, we ensure their offerings and service quality meets certain qualitative and quantitative benchmarks and fixed protocols. A thorough quality check is initiated at the supply chain stages to ensure pre-picking of only those products that make the cut. Then, we use special packaging and customised bags so that PepperTap grocery items retain their freshness in transit.
How have your ensured better customer interface at every touchpoint?
For starters, we haven't outsourced the process. Our technology is built and developed in-house with all the processes and handovers being connected through app-based technology. Our tech team is constantly working to make the app user-friendly, not only for our customers but also for the vendors that are connected with us.
We are the first ones in the hyper-local grocery delivery space to integrate the Live Chat feature. With this, customers can now enjoy a more engaging, interactive and instantaneous experience with the brand. By allowing customers to have their concerns addressed and queries answered by our staff in a jiffy, it greatly enhances their experience. By letting them chat with the brand representatives and getting an instant feedback, we want to tell them that if "your order doesn't have to wait for more than two hours, why should the assistance?"
Another recent feature we introduced is PepperCash that offers virtual in-app currency for the time-strapped shopper. With this, online shoppers can now get refunds for returned orders without any delay. This eliminates credit/debit related issues and makes online grocery shopping hassle-free.
We have also greatly improved the experience for vendors through our vendor app. We realise that our policies and technological edge have to be conducive for the professional and personal growth of all the vendors associated with our venture. So, we have equipped them to have a holistic understanding of their operations - in everyday terms and in the long run. By logging in, the business representative will be able to see a comprehensive picture of his performance with PepperTap. This in turn will allow him to take better decisions on stocks, quantities and inventory management. A vendor will be able to identify the top 100 best-selling products from his store.
What are the areas you stress at the back end to fulfil your promise of delivery of merchandise within two hours of ordering?
We focus on fill rates and on-time delivery. Our back-end staff has complete visibility of incoming orders. Apart from an extensive retail network, we have zeroed in on a couple of dark stores that are divided on the basis of geography. If a product is not available at the partner store that's within a three-five km radius, we count on the closest dark store. These dark stores are able to fulfil bulk orders with ease. We are working with five dark stores in the NCR while six more in Mumbai, Chennai, Bengaluru and Hyderabad are in the pipeline. PepperTap also guides these dark stores in expanding their product catalogue and building brand relations.
What are the critical factors and challenges in attracting retail partners?
Vendor onboarding was a challenge when we'd just launched. The vendors we contacted would tell us that they feared competition but this perception has changed in the past few months. They have realised the association with an e-commerce platform like ours helps them get more orders. The promise of higher sales and operational excellence has won us a string of retailers pan-India.
How do you ensure that you source the orders quickly? How easy is the access to warehouses and dark stores?
Partnering with more vendor stores/partner stores helps us source orders quickly. A lot of our partners have shown incredible amount of confidence in us and have opened dark stores in collaboration. With dedicated volumes, these dark stores are able to break even and make logistics work in their favour.