Digital Garage fully provides “Pangaea Delivery” to Satsudora, evolving into Japan’s first retail tech service compatible with quick commerce for retail businesses
*Digital Garage Co., Ltd.*
Press release: September 5, 2024
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Digital Garage fully provides “Pangaea Delivery” to Satsudora, evolving into Japan’s first retail tech service compatible with quick commerce for retail businesses
*~Addressing issues in ordering and picking operations and centrally managing online orders~*
*Digital Garage Co., Ltd.* (Headquarters: Shibuya-ku, Tokyo, Headquarters: Shibuya-ku, Tokyo, Representative Director, President Executive Officer, Group CEO: Hayashi
Iku (hereinafter referred to as DG) has implemented significant functional enhancements to the SaaS* “Pangaea Delivery”* provided by our company to improve the operational efficiency of retailers.* We will strengthen our development as Japan’s first retail tech service (*1) compatible with quick commerce for retail businesses. * In addition, DG is * Sapporo Drugstore Co., Ltd. * (Head office: Higashi-ku, Sapporo, Representative Director, President and CEO: Toyama
We are pleased to inform you that after a demonstration experiment with Hiroki (hereinafter referred to as Satsudora), we have decided to fully implement “Pangaea Delivery” at 104 Satsudora stores.
* ■Background and history*
In recent years, against the backdrop of changes in consumer lifestyles, online supermarkets, drive-throughs, and BOPIS (Buy Online Pick-up In
We are expanding our online sales business using various channels, including physical stores such as Store). This is particularly noticeable in quick commerce (immediate delivery), where the global market size continues to grow at an average annual growth rate of 25.1% and is expected to expand to approximately $255 billion by 2028 (*2).
While the introduction of Quick Commerce has enabled many businesses to increase sales and gain consumer contact through a variety of sales channels, the issue is the increased burden of business management and operations due to the different terminals and operations for each service. It becomes. In particular, in retail businesses, various SKUs (Stock
The full-scale introduction of quick commerce has been delayed due to hurdles such as keeping units (keeping units), frequent product changes, and large store areas.
In order to solve these business issues, DG is working on functional development and external business in order to roll out the SaaS “Pangaea Delivery”, which can centrally manage multiple online ordering services, to not only restaurant operators but also retailers. We have expanded system collaboration with people (*3).
* ■Evolved as Japan’s first retail tech service compatible with quick commerce * In addition to centralizing online order management, Pangea Delivery has implemented functions such as support for various SKUs unique to retailers and improved data processing capabilities. In addition to POS systems, we are accelerating open innovation with external companies, including startups, such as system collaboration with retail tech companies that solve a variety of problems for retailers.
In addition, for the full-scale implementation at Satsudora stores, we collaborated with the “picking system” provided by ROMS Co., Ltd. This makes it possible to centrally manage and operate not only orders and status management of multiple delivery services, but also in-store picking operations, and provides a comprehensive solution to the quick commerce service introduction issues faced by retailers. .
* ■About business issues in quick commerce operations and solutions provided by Pangea Delivery*
The business issues detected through the demonstration experiment with Satsudora stores and the solutions provided by Pangea Delivery are as follows.
* 1. Bulk management and operation of multiple online services * * ◎Business issues*
– Order management becomes complicated because the management terminals are separate for each online service, and the operating procedures and rules are different.
– It is difficult to determine the priority order of orders received across online services, leading to mistakes and oversights.
→Solutions by Pangea Delivery
・By making it possible to centrally manage and operate all online services using a single tablet, we have realized more efficient in-store operations and a significant reduction in human error.
* 2. Improving the efficiency of picking operations (searching for and collecting products based on order details) *
* ◎Business issues*
・Products handled in the store often have similar packaging, leading to frequent mistakes when picking products.
・If you proceed with picking without taking into account the shelf allocation of products, there will be waste in the flow of store staff and the picking process will take time.
→Solutions by Pangea Delivery
・Improves the efficiency of picking operations by presenting the optimal picking route that takes into account the shelf allocation of products.
– By reading product barcodes with a smartphone, human error can be eliminated and products can be picked accurately.
* 3. Automatically reflect in-store product out-of-stock information * * ◎Business issues*
・Products displayed in the store may become out of stock when purchased by consumers who visit the physical store, but when it comes to linking information to online services, individual inventory must be taken, and business Heavy load.
→Solutions by Pangea Delivery
– Immediately identify out-of-stock status at the time of picking, notify Quick Commerce customers, and automatically delete items from product lists on all online services.
* ■Image of operations at a store that has introduced “Pangaea Delivery”* * ■Future outlook*
In the future, DG will expand its “Pangaea Delivery” services to help food and beverage and retail businesses improve quick commerce business efficiency and increase sales by providing picking route navigation, POS and inventory coordination, demand forecasting using AI, etc. We will do so. In addition, we are preparing to develop a new service that will enable food and beverage and retail businesses to conduct off-premises online sales under their own brands.
We will contribute to the further acceleration of “FinTech Shift” and the development of quick commerce in Japan.
* ■Comments*
* Daisuke Tominaga, Executive Officer, Business Strategy Design Promotion, Digital Garage Co., Ltd.*
DG is a group strategy that combines payments, data, and technology. Shift”, we are promoting the development of DX services that are highly compatible with DG’s core business of payment services and solve issues specific to financial services and industries. This evolution of Pangea Delivery is designed to help improve growth and productivity in the food and beverage and retail industries, which are facing issues such as labor shortages and cost increases due to inflation. I am very happy to have been introduced to the. Going forward, we will further strengthen our cooperative relationships with related businesses in the industry and provide Pangea Delivery to a wide range of retailers, including drugstores, convenience stores, and supermarkets, and aim to expand the Japanese quick commerce market. We will continue to contribute to its expansion.
* Mr. Takuto Oi, Executive Officer, General Manager, Business Strategy Division, Sapporo Drug Store Co., Ltd.*
Our company’s mission is “Connecting regions and moving Japan into the future.” We are proceeding with business development based on the group concept. One of our important missions is to make our stores O2O. In order to provide customers with a more convenient and enjoyable experience using our stores, the most relevant and important aspects are the work efficiency and work experience of our employees. As a result of this joint development with Digital Garage, we are confident that we have been able to significantly improve work efficiency and work experience in the increasingly complex 3P quick delivery order handling process for employees. We hope that Pangea Delivery will continue to evolve as it is shared by many retailers, and that this system will contribute to labor savings in business settings as the population declines.
*1: As of August 2024, according to Digital Garage research
*2: Source: The Business Research Company “Quick Commerce Global Market Report” 2024”
*3: Digital Garage News Release March 1, 2022
https://www.garage.co.jp/pr/release/20220301_02/