Group DIA is one of the key players in the Spanish retail industry development in the last 40 years. Grupo DIA has more than 7,400 stores (DIA, 2018) in 3 different countries (Spain, Argentina and Portugal), and specifically in Spain it is the 3rd largest supermarket chain.
In fact, they have integrated a new key logistic activity that Grupo DIA successfully. The alliance with the most well-known e-retail worldwide which is Amazon. This allowed DIA to have access to hundreds of thousands of new consumers, but also to be part of a world-class purchase platform which, indeed, might impact on its brand perception.
DIA consider that digital transformation impulse is key to achieve best-in-class growth in the future. Based on this, the main logistic activities that are going to be evaluated are related to Physical distribution, which includes: Order Picking, Packaging and Outward transport. The alliance with Amazon gave DIA a great advantage.
At the beginning, this activity was focused only in Madrid and Barcelona. Since it was successful, and they have the goal of multiplying revenues by six (DIA Amazon, 2017), they are starting to expand to other cities. One of those is Valencia (DIA Amazon, 2018), we are able now to purchase through Amazon our groceries.
To have access we must download the Amazon Prime Now App follow the instructions that are clearly shown:
The E-Commerce Director of DIA, Diego Sebastián de Erice, mentioned that “One of the key issues is the control and management of stocks “so that there are no faults”; his responsibility is limited to the preparation of the order, since the shipment is handled by Amazon” (DIA Prime, 2017).
For this alliance, DIA is using their format called “La Plaza de DIA” which offers all the assortment from one store and it “obviously that includes a wide range of private-label items of Bonté, Delicious, and all our private-label — exclusive private-label products. And we see that — we are really seeing that that is a differentiation factor in the future of [line].
They are offering something amazing related to Outward transport, they offer to deliver the products in two hours if the order is higher than 25 Euros. This is really convenient for those new shoppers that do not have time for going to the physical store
Ricardo Curras also said “What we have seen is — but it is very preliminary, is that we are gaining Amazon customers because what we have provided these La Plaza de DIA as the supermarket of Amazon Prime Now, the best Amazon customers.
The existing DIA app for online purchasing have really good LOGISTIC benefits for customers that are allowed to receive their products at home after purchasing online in the same day, this is really good. Now, inside the AMAZON Prime Now App, people would also be able to buy products from DIA, this is an amazing opportunity for DIA to be able to reach new customers. “Even though online purchasing still accounts for just over 1% of total sales” (DIA Prime, 2017), logistic activities regarding online purchasing are extremely important.