Case Report
Grocery Gateway Case
Marketing Plan
Executive Summary
Dominique Van Voorhis, the vice-president of industrial engineering and operations systems for Grocery Gateway has been asked to make recommendations aimed at improving delivery operations at the weekly management meeting in seven days. There he will need to present his new ideas to the CEO and COO of Grocery Gateway.
Dominique has already gathered the delivery time information as well as current average orders being placed. He’s been able to identify that it takes 15 minutes for set up, 30 minutes for stem time, 30 minutes to return to the centre and 15 minutes for close out. Also, 10 minutes were included to meet with the customer of whom almost half was to receive payment and unload. Their current total average order per day for each of their 13 different regions in their zone was 7,818.
There are 5 alternatives to improve the delivery operations:
1) Extend driver shifts
2) Approach Descartes to expand licensing agreement
3) Increase the delivery charge
4) Eliminate drivers taking payment at delivery
5) Status Quo-many not actually improve the delivery options but it is an alternative
Alternative 4 and 2 are the main recommendations as they will assist Grocery Gateway in increasing their deliveries completed per driver as well as speed up each delivery. If the majority of purchases were paid for online as opposed to the driver directly, delivery times would decrease significantly. Offering incentives to customers would assist in the promotion of this strategy. Also, the expansion of their current system would help them become more efficient in assessing route profitability and to determine the desirability of delivery in particular time slots.
Alternative 1 and 3 would be included as part of the contingency plan in case the first recommendations do not go according to plan. With the implementation of extending the driver shifts and increasing the delivery charges, Grocery
Marketing Plan
Executive Summary
Dominique Van Voorhis, the vice-president of industrial engineering and operations systems for Grocery Gateway has been asked to make recommendations aimed at improving delivery operations at the weekly management meeting in seven days. There he will need to present his new ideas to the CEO and COO of Grocery Gateway.
Dominique has already gathered the delivery time information as well as current average orders being placed. He’s been able to identify that it takes 15 minutes for set up, 30 minutes for stem time, 30 minutes to return to the centre and 15 minutes for close out. Also, 10 minutes were included to meet with the customer of whom almost half was to receive payment and unload. Their current total average order per day for each of their 13 different regions in their zone was 7,818.
There are 5 alternatives to improve the delivery operations:
1) Extend driver shifts
2) Approach Descartes to expand licensing agreement
3) Increase the delivery charge
4) Eliminate drivers taking payment at delivery
5) Status Quo-many not actually improve the delivery options but it is an alternative
Alternative 4 and 2 are the main recommendations as they will assist Grocery Gateway in increasing their deliveries completed per driver as well as speed up each delivery. If the majority of purchases were paid for online as opposed to the driver directly, delivery times would decrease significantly. Offering incentives to customers would assist in the promotion of this strategy. Also, the expansion of their current system would help them become more efficient in assessing route profitability and to determine the desirability of delivery in particular time slots.
Alternative 1 and 3 would be included as part of the contingency plan in case the first recommendations do not go according to plan. With the implementation of extending the driver shifts and increasing the delivery charges, Grocery
References: Johnson, P. Fraser. Grocery Gateway: Customer Delivery Operations. London, Ontario: Ivey School of Business, 2008.