Beyond the basket: Kroger’s cost to order

For e-commerce leaders, cost to serve decides whether delivery growth builds margin or erodes it. It’s the real expense of moving every order from screen to doorstep. Larry Speights, E-commerce Operations Planning Engineer at Kroger, built a routing simulation in Alteryx to see that cost clearly before a single van rolls out, testing how routing orders from a different store location can change last-mile cost.

In this session, Larry shows how that work connects to a sharper view of cost to serve across the network.

He’ll explain how:

• Routing simulation surfaces last-mile cost trade-offs before a van leaves the store
• Scenario and what-if testing turns historical order data into confident operational decisions
• It’s possible for an analyst built a complex routing model in house with Alteryx
• A single operational use case scales into repeatable cost-to-serve insight across the network

You’ll also see the simulation in action, including how a change to a delivery window or vehicle speed reshapes the routes and the cost.