The hidden cost of complexity in online grocery
Online grocery is one of the toughest fulfillment challenges out there. Orders are larger, products are temperature-sensitive, demand fluctuates wildly, and customers expect precise delivery windows. It’s a delicate balance between service quality and operational efficiency, and every decision affects cost.
Right now, many retailers find themselves caught between two extremes: gig-economy delivery models that promise flexibility but erode margins and control, and large-scale automation systems that demand heavy upfront investment and take years to deploy. The result is a market where few can claim consistent profitability, and where finding a practical middle ground has become the real challenge.
At Oda Systems, we know this tension well. We have been an online grocer from the very beginning, and we built our own logistics systems from the ground up. We had ambitions for a level of efficiency that didn’t yet exist, but that, once realized, would finally make online grocery profitable. That experience shaped our entire approach, namely that real efficiency comes from simplifying, not complicating.
Designing out complexity
Automation can solve a lot of problems, but it can’t fix unnecessary ones. The first question in any process should be: can this step disappear entirely?
Removing a sorting step, for instance, is always faster and cheaper than automating it. Cutting out unnecessary waiting time costs less than optimizing it. This mindset, i.e. eliminate first, automate second, has shaped how we design every part of our fulfillment system.
When only the essential steps remain, operations become easier to manage, not harder. That simplicity builds stability, scalability, and lower cost over time.
In practice, this has allowed us to rethink how fulfillment centers are traditionally configured. For example, by connecting our picking and packing processes directly to delivery planning, we reduced redundant handling and lowered the investment needed for a new site by up to 70% compared to traditional, heavily automated setups. Each improvement compounds, creating a system that grows leaner rather than heavier as it scales.
When fulfillment and delivery speak the same language
The same principle applies beyond the warehouse. Last-mile delivery is often treated as a routing challenge, but in grocery it’s equally a handling challenge around chilled goods, loading sequences, and customer timing.
When delivery planning and fulfillment systems are designed together, they stop competing and start collaborating:
- The routing engine determines the delivery sequence.
- The warehouse packs in the same order.
- The first stop becomes the first cage off the truck.
No sorting, no searching, no wasted minutes. This integrated approach has helped us achieve 40-60% lower running costs than traditional online grocery setups, not through heavier automation, but through clearer design.
That same clarity translates to a better customer experience. Shorter loading times mean fresher products and fewer delays, which strengthen trust and repeat orders, which are the foundation of a sustainable grocery business.
The advantage of simplicity
Simplicity comes from building systems that are clear in purpose and easy to connect. When every part of an operation fits together without friction, efficiency follows naturally.
A modular approach makes this possible. It allows each part of the chain to improve on its own while still working smoothly with what’s already in place. Your solution can then evolve step by step, strengthening the whole system without starting over.
Sustainable profitability in online grocery depends on systems designed for clarity. They must be simple enough to manage and flexible enough to grow. That balance is what turns efficiency from an aspiration into an everyday reality.