The Nostalgic Online Grocery Store with Digitalised Supply Chain Management
"GS1 Standards enable us to improve operation efficiency and support data analytics when there are standardised ways to identify the right product at the right time."
-- Mr. Danny Shum, Chief Executive Officer
Before Ztore and HKTV Mall appeared, online grocery shopping had not been actively pursued by retail players in Hong Kong because of shopping convenience. Ztore started by partnering themselves with some local vintage brand owners like SMITH candies, MAMEE snacks noodles. The company covers somewhere between 6,000 and 7,000 product variety from over 200 suppliers, in which about 60% of them do not have a digitalised inventory management system.
As its scale continues to grow, it puts pressure on Ztore's warehouse rental and storage cost if the stocks can only be manually managed, so it is of absolute need for them to continue to perfect their supply chain management. Ztore requires extra manpower to tag labels, manage inventory in and out of warehouse and sometimes even jeopardise the same-day delivery promise to customers.
Ztore became GSl HK members and encouraged its suppliers to digitalise their inventory with a simple barcode, or GTIN (Global Trade Item Number). Since then, Ztore witnessed drastic improvement in their warehouse operation when the manager needed only a scan to identify the product details, easily following the "first-in-first-out" rule for the packaged food items. It is easier for them to know the out-of-stock items and make purchasing order as needed, helping to efficiently coordinate with the increasing growing number of suppliers.
One of the major edges of Ztore is their same-day delivery service commitment, with more efficient warehouse management, they achieved close to 100% service level.
The adoption of GSl GTIN and barcode standard brings a win-win situation between Ztore and its suppliers, helping them:
- Reduce the workload at warehouse and the tension of warehouse storage space
- Easily identify the product in the warehouse
- Better control inventory, including replenishment of products at the right time when stock is low
- Guarantee the service level commitment to their customers
About the Company
Ztore.com is an online supermarket with same-day delivery, selling quality groceries and home essentials. Partnering with local nostalgic brands, Ztore.com is expanding to include international variety to the mix, allowing busy Hongkongers to shop grocery online anywhere, anytime through a safe payment gateway.