{"id":3474,"date":"2019-06-09T17:56:28","date_gmt":"2019-06-09T17:56:28","guid":{"rendered":"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/?p=3474"},"modified":"2019-07-24T20:40:33","modified_gmt":"2019-07-24T20:40:33","slug":"the-new-frontier-of-food","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/uncategorized\/2019\/06\/09\/the-new-frontier-of-food\/","title":{"rendered":"The new frontier of food"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large alignnone\" src=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/wp-content\/uploads\/sites\/23\/2019\/07\/SPUD-1024x683.jpg\" alt=\"A photograph of two SPUD employees at work with one holding fresh tomatoes\" width=\"1024\" height=\"683\" \/><\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><strong>Canadian company SPUD.ca uses AI, ebikes &amp; the Microsoft Cloud to deliver local organic food to homes &amp; offices with almost zero waste!<\/strong><\/p><\/blockquote>\n<p>Vancouver-based SPUD is a fast-growing local online organic food delivery company servicing six urban areas in Canada. The company\u2019s proprietary logistics platform built on Microsoft Dynamics 365 uses artificial intelligence to prepare and deliver grocery orders faster and better\u2014and with almost zero food waste.<\/p>\n<h2>Big expectations<\/h2>\n<p>When it comes to groceries, Canadians want it all. We expect a big selection of high-quality food at a low price. We want our food to come from local sources, or at least ethical ones. Some of us will pay a premium for organic or prepared foods. And, above all, we love a deal! We expect lots of sales and loyalty benefits with our purchase.<\/p>\n<blockquote><p>In exchange for meeting our many needs and wants, we open our wallets. Statistica estimates the annual retail sales of food and beverage at $188 billion in Canada &amp; five\u00a0<strong>trillion\u00a0<\/strong>dollars in the USA.<\/p><\/blockquote>\n<h2>Same old, same old<\/h2>\n<p>Despite the size of the opportunity \u201con the table,\u201d not much has changed when it comes to how we buy groceries. Many of us still drive to grocery stores, browse the aisles collecting what we want, and then transport it all home. Even as online shopping has taken off in Canada for other products and services, grocery shopping remains largely the same since the 1950s.<\/p>\n<blockquote><p>\u201cOnline grocery is where apparel was 10 years ago. People hesitated to buy clothes online at first because they couldn\u2019t try them on. Then the tech caught up. Now most apparel is sold online.\u201d \u2013 Peter van Stolk, CEO<\/p><\/blockquote>\n<h2>Margin issues<\/h2>\n<p>Grocery stores operate a high-frequency, low-volume business. That model makes home delivery too costly for them to offer, at least by traditional means. Just consider the complex safety requirements of transporting fresh food. Then factor in Canadian weather\u2014everything from sweltering summer days to frigid winter mornings.<\/p>\n<blockquote><p>\u201cAnyone can ship a box of cereal, but try shipping a strawberry pie next to eggs, ice cream, and seafood and getting it all there in one consolidated order, at temperature\u2014and at the same time! Now that\u2019s difficult.\u201d<\/p><\/blockquote>\n<h2><a href=\"https:\/\/blogs.business.microsoft.com\/wp-content\/uploads\/azure-storage\/2018\/11\/SPUD-groceries.jpeg.jpg\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large alignnone\" src=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/wp-content\/uploads\/sites\/23\/2019\/07\/SPUD-groceries.jpeg-1024x682.jpg\" alt=\"A plastic tote basket labelled as Spud.ca with fresh vegetables\" width=\"1024\" height=\"682\" \/><\/a><\/h2>\n<h2>E-groceries at last!<\/h2>\n<p>Everything\u2019s changed now, thanks to the innovative work of Peter van Stolk and his team at Sustainable Produce Urban Delivery, or SPUD. With its roots as a CSA company (Community Supported Agriculture), SPUD builds on the success of the fresh produce subscription model. In that model, farmers deliver bins full of freshly-picked fruits and vegetables directly to homes on a weekly basis. SPUD expands on that service concept greatly by selling and delivering a \u201cfull basket\u201d of groceries.<\/p>\n<blockquote><p>Voted best grocery delivery by the Georgia Straight for three years running,\u00a0<a href=\"http:\/\/www.spud.ca\/\" target=\"_blank\" rel=\"noopener noreferrer\">spud.ca<\/a>\u00a0sells a full range of products, including produce, dairy, bakery, meat, seafood, packaged goods, ready-to-eat meals\u2014you name it.<\/p><\/blockquote>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large alignnone\" src=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/wp-content\/uploads\/sites\/23\/2019\/07\/SPUD-bike-and-store-1024x683.jpg\" alt=\"Photograph of a SPUD delivery ebike parked next to a Be Fresh retail store\" width=\"1024\" height=\"683\" \/><\/h2>\n<h2>Omnichannel strategy<\/h2>\n<p>SPUD.ca is just one of many channels the company uses to connect with consumers and grow its business. Their\u00a0<a href=\"https:\/\/www.youtube.com\/user\/spudorganics\" target=\"_blank\" rel=\"noopener noreferrer\">YouTube channel<\/a>\u00a0offers informative videos about their services. Under the\u00a0<a href=\"https:\/\/www.befresh.ca\/\" target=\"_blank\" rel=\"noopener noreferrer\">Be Fresh<\/a>\u00a0brand, the company also operates stores, cafes, local markets, and even a food service\/catering storefront. This omnichannel approach helps meet the needs and wants of shoppers\u2014on their terms and at their convenience.<\/p>\n<blockquote><p>\u201cOur goal is to offer a seamless experience for our customers to get fresh, healthy food where they want it, when they want it, and how they want it.\u201d<\/p><\/blockquote>\n<h2>Grocery retailer-friendly<\/h2>\n<p>All this must be bad news for grocery retailers, right? On the contrary. True to its values as a CSA, SPUD offers\u00a0<a href=\"http:\/\/www.foodx.ca\/\" target=\"_blank\" rel=\"noopener noreferrer\">Food-X Urban Delivery<\/a>, a platform designed to help grocery stores make urban delivery a reality. Housed in a new state-of-the-art 74,000 square foot facility in Burnaby, Food-X gives other grocery retailers access to SPUD\u2019s industry-leading technology, warehousing, home delivery, and food preparation platform.<\/p>\n<blockquote><p><a href=\"https:\/\/www.newswire.ca\/news-releases\/walmart-canada-collaborates-with-food-x-to-bring-sustainable-grocery-delivery-to-vancouver-area-customers-674692763.html\" target=\"_blank\" rel=\"noopener noreferrer\">Walmart Canada reduces waste, truck trips, and greenhouse gas emissions by working with Food-X to fulfill last mile home delivery in Vancouver.<\/a><\/p><\/blockquote>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large alignnone\" src=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/wp-content\/uploads\/sites\/23\/2019\/07\/SPUD-warehouse.jpeg-1024x666.jpg\" alt=\"Photograph of a SPUD warehouse showing their bin distribution system\" width=\"1024\" height=\"666\" \/><\/h2>\n<h2>How does SPUD do it?<\/h2>\n<p>It takes more than ebikes and ethics! Ingeniously, the SPUD platform integrates directly with the retailer\u2019s point of sale (POS) systems to provide live visibility of inventory. This seamless integration allows retailers to sidestep clumsy work-arounds, like requiring a store employee to manually collect and ring up the items from a list. Instead, their orders are fulfilled, swiftly and efficiently, through SPUD\u2019s state-of-the-art facilities and sophisticated logistics planning and deployment.<\/p>\n<blockquote><p>\u201cReducing food waste makes both ethical and business sense. It\u2019s the number one thing we can do as a society to impact the world.\u201d<\/p><\/blockquote>\n<h2>Close to zero waste<\/h2>\n<p>The company runs an online store, so they don\u2019t have food items expire or get damaged on the shelf. SPUD only orders based on their customer needs, so they don\u2019t over-order perishable, short-shelf life items. In fact, they don\u2019t hold a huge inventory at all and turn it over dramatically faster than traditional stores. They even donate \u201cimperfect\u201d food to local charities and put them on sale at an Organic Imperfect Produce page!<\/p>\n<blockquote><p>Traditional grocery stores\u2019 food waste typically represents five to six percent of their sales. SPUD\u2019s approach cuts food waste to just 0.5 percent!<\/p><\/blockquote>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large alignnone\" src=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/wp-content\/uploads\/sites\/23\/2019\/07\/SPUD-bin-sensor-1024x682.jpg\" alt=\"Photograph of a SPUD bin with a sticker on it being scanned by hand\" width=\"1024\" height=\"682\" \/><\/h2>\n<h2>Precision packing<\/h2>\n<p>On top of all that, SPUD\u2019s rapid-pack technology uses artificial intelligence and license plates to better pack, prepare, and monitor each order. Bins with plates travel the whole system and go back to the picker for packing and loading in a precise order, which maximizes the amount of room in the bins and the trucks carrying them. All of which creates unprecedented efficiencies.<\/p>\n<blockquote><p>Talk about agility! Conventional grocery stores take 27 days to turn over inventory. SPUD turns over 80 percent of its inventory every 48 hours and 100 percent of its inventory in 12 days.<\/p><\/blockquote>\n<h2>Dynamics 365 at work<\/h2>\n<p>Behind the scenes, SPUD\u2019s proprietary inventory management system built on Dynamics 365 manages their operations\u2014from end-to-end\u2014providing real-time visibility into all operations and sales, as well as reliable business analytics. Combined with Office 365 and Azure cloud services, SPUD takes full advantage of Microsoft integration and scale.<\/p>\n<blockquote><p>What an impact! In a single year in Vancouver, SPUD diverted 265,971 kg of waste from the landfill; prevented 444.3 tons of carbon from entering the atmosphere; and saved 3,564,275 litres of water.<\/p><\/blockquote>\n<h2>A global vision<\/h2>\n<p>With dramatic business results like these and the industry validation of a global retailer like Walmart, SPUD stands poised to expand quickly into other markets, big and small. Rather than disrupt grocery stores, SPUD enables them to digitally transform, to reduce food, energy, and water waste\u2014while they enhance their customer\u2019s experience.<\/p>\n<blockquote><p>The sky\u2019s the limit for SPUD! By leveraging Microsoft\u2019s global network of secure datacentres, the company can compete in virtually any market in the world, securely and compliantly.<\/p><\/blockquote>\n<h2>Built on local relationships<\/h2>\n<p>Best of all, SPUD continues to build and strengthen its relationships with organic farmers and artisan growers across the country. They source fresh food from over 700 growers today and intend to continue to build that local network, wherever they go next. That\u2019s great news for Canada\u2019s independent food manufacturers and grocery stores!<\/p>\n<blockquote><p>\u201cGrocery stores may not be able to compete against Amazon in the future. We can bring ecommerce grocery to a smaller market and help independent grocers who\u2019ve already been squished.\u201d<\/p><\/blockquote>\n<h2>Including Microsoft<\/h2>\n<p>SPUD migrated from Google to Microsoft after a comprehensive review of the company\u2019s technology options. When the dust settled, the SPUD team recommended partnering with Microsoft after recognizing it as the best cloud for scaling their business and handling transactions securely and compliantly.<\/p>\n<blockquote><p>\u201cWe spent about two years deciding on an ERP system. When we looked up and saw what Microsoft was doing\u2014where Dynamics was going and the changes we\u2019ve seen\u2014we made the leap.\u201d \u2013 Peter van Stolk, CEO<\/p><\/blockquote>\n<h2>A bright future<\/h2>\n<p>SPUD continues to innovate with practical sustainability in mind. The fast-growing company is working towards operating plastic-free facilities and has plans to market clever eco-bags and lunch containers. In the meantime, just making sustainable online grocery shopping viable for everyone, including food retailers, is awesome!<\/p>\n<h2>Links<\/h2>\n<p><a href=\"https:\/\/www.spud.ca\/\" target=\"_blank\" rel=\"noopener noreferrer\">SPUD website<\/a><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/user\/spudorganics\" target=\"_blank\" rel=\"noopener noreferrer\">SPUD YouTube channel<\/a><\/p>\n<p><a href=\"http:\/\/www.foodx.ca\/\" target=\"_blank\" rel=\"noopener noreferrer\">Food-X<\/a><\/p>\n<p><a href=\"https:\/\/dynamics.microsoft.com\/en-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">Dynamics 365<\/a><\/p>\n<p><a href=\"https:\/\/azure.microsoft.com\/en-us\/overview\/trusted-cloud\/\" target=\"_blank\" rel=\"noopener noreferrer\">Azure Trusted Cloud<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; Canadian company SPUD.ca uses AI, ebikes &amp; the Microsoft Cloud to deliver local organic food to homes &amp; offices with almost zero waste! Vancouver-based SPUD is a fast-growing local online organic food delivery company servicing six urban areas in Canada. The company\u2019s proprietary logistics platform built on Microsoft Dynamics 365 uses artificial intelligence<\/p>\n","protected":false},"author":379,"featured_media":3489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"_classifai_error":"","footnotes":""},"categories":[1],"post_tag":[294],"content-type":[],"coauthors":[300],"class_list":["post-3474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-smb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The new frontier of food - Microsoft Industry Blogs - Canada<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.microsoft.com\/en-ca\/industry\/blog\/uncategorized\/2019\/06\/09\/the-new-frontier-of-food\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The new frontier of food - Microsoft Industry Blogs - Canada\" \/>\n<meta property=\"og:description\" content=\"&nbsp; &nbsp; Canadian company SPUD.ca uses AI, ebikes &amp; the Microsoft Cloud to deliver local organic food to homes &amp; offices with almost zero waste! 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