Digital technology can improve the in-store customer experience and it can give retailers more data on shoppers' preferences and habits. Some early adopters of the "frictionless store" seek to integrate online operations with physical stores, while others are focused on making shopping quick and easy for consumers while gathering plenty of data on their buying habits. This article provides an overview of the current landscape and guidance for retail executives considering their in-store tech strategy.

Cargo's mission is to help "rideshare drivers earn more money by providing complimentary and premium products to passengers." Cargo sources goods from suppliers to provide a platform for gig economy drivers to run small convenience stores out of their vehicles. Drivers earn additional income, and riders enjoy convenient and affordable access to products during their rides. As the company grew, Cargo faced a number of supply-chain-related challenges including determining the product mix in the Cargo box, replenishment of the product, and the cost of carrying inventory. In particular, would the replenishment decision be driven by the company or the driver and who would bear the responsibility for the inventory cost? The founders also considered how to most efficiently manage its suppliers: Would a centralized or decentralized model best serve Cargo and its drivers? And, how might supply chain contracts with its suppliers help support the company's profitable growth?

Student spreadsheet for case CU215.