This Mexico-Based E-commerce Business Reduced 66% Delivery Costs With Locus

When it was first launched in 2019, Mexico-based Jüsto was an e-grocery platform that wished to disrupt the consumer industry and become Latin America’s favorite supermarket by 2030. Currently, they have operations in Brazil, Peru and five cities in Mexico: Monterrey, Guadalajara, Queretaro, Puebla and Mexico City.

When they first began their journey, the greatest challenge was gaining the trust of consumers, who were used to visiting their local grocery store and largely preferred to check their groceries first-hand before purchasing them.

With 2020 came the new realities of the pandemic, and suddenly, Jüsto found itself dealing with unforeseen levels of adoption. Consumers also had certain expectations around safety standards and fulfillment, which meant that Jüsto needed to find new and more efficient ways of carrying out end-to-end fulfillment to meet their expectations.

Reducing 66% delivery costs with Locus

According to Manuela Velez Araque, Lead Product Manager, Jüsto, efficient routing was one of the top three priorities for the company for timely and efficient fulfillment, given the size of cities like Mexico City and their complex traffic movements.

The second priority was to bring more automation to existing processes. Initially, Jüsto carried out its last-mile fulfillment, right from order allocation to route planning to final delivery, manually. As they were opening new warehouses in different cities quite rapidly, processes like the constant uploading of data manually onto a Transport Management System put a cap on bringing efficiencies at scale and achieving high service levels.

Thirdly, Jüsto wished to enhance the customer experience with accurate estimated time of delivery, and real-time order tracking. After working with a last-mile logistics provider, and not satisfied with their roadmap for these three priorities, Jüsto decided to switch to Locus.

Right from the get-go, Jüsto was able to maintain satisfactory service levels even as it began to rapidly scale its operations with the advanced algorithms of Locus’ Route Planning System. To date, it has also been able to reduce its delivery costs by 66%. Another key feature behind this is Order Management, which automates the entire order fulfillment cycle, from capture to allocation and delivery.

The platform allows for the quick deployment of solutions, and according to Juan Pablo Diaz Rodriguez, Head of Last-Mile at Jüsto, processes that would have taken close to a year to implement were deployed with Locus in just seven months.

Ensuring flexibility and end-to-end visibility for customer delight

There was also a lot of flexibility through the varied delivery slots that Jüsto can provide its customers and deploy different fulfillment strategies for high efficiency and keeping costs in check. As a result, it was able to expand its reach to locations as far as 150 km away at appropriate service levels.

With the help of Locus’ Geocoding capabilities, Jüsto also managed to improve first attempt delivery rates. The highly intuitive user interface also provided team members clarity and visibility on the highly complex operations and increased fleet productivity through operations like easily clustering orders, and creating different teams to fulfill them in minutes. Role-based access control also provided a level of control and security over their operations that vastly helped streamline fulfillment and reduce disruptions to processes.

With Control Tower, Jüsto could keep track of its fleet in real-time and step in to handle disruptions like vehicle breakdowns and traffic jams. Similarly, with Locus’ Shipment Tracking System, Jüsto was also able to delight its customers with turn-by-turn updates on its order status, realistic ETAs, and timely communications on potential delays.

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On a journey to become Latin America’s favorite supermarket

As Jüsto continues consolidating its current markets, it aims to achieve an even greater reduction in delivery costs by meeting growing demand in high-density locations. Its goal is to expand its footprint without incurring extra costs by ensuring greater integration of operations and better automation.

Jüsto is raising the bar for e-grocery platforms with Locus Dispatch Management Platform and in the future, it hopes to offer consumers more control over their shopping experience with a diverse range of flexible and convenient fulfillment options, which could also include dynamic-price-based fulfillment, and even sustainable fulfillment options.

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