Grocery Gateway
Problem Statement
Grocery Gateway would like to increase their deliveries from 2.7 to 4 per hour. Dominique Van Voorhis, vice president of industrial engineering and operations systems, must provide recommendations for improving and optimizing the delivery operations.
Situation Analysis
Background
Grocery Gateway, founded in 1997 by Bill Nardo, is Canada’s largest direct online grocer and provides its services to residents of the Greater Toronto area (GTA). The company provides approximately 6,500 items including dry goods, health and beauty products, alcoholic beverages, fresh produce and frozen foods on their website www.grocerygateway.com at competitive prices.
Company Objective
Grocery Gateway provides high levels of customer service as relatively low prices but wish to improve the efficiency of their delivery service allowing them to make 4 deliveries per hour and reduce the delivery window to 30 minutes. This will help them to achieve their goal of 5,000 orders per day within 3 years.
S.W.O.T. Analysis
Strengths
Grocery Gateway, the largest direct online grocer in 2001, is a well established company with 125,000 registered users. They provide a wide variety of items can be ordered from the convenience of your home and delivered right to your door. By providing a broad window of delivery times (between 6:30am and 10:30pm) and allowing payment to be made at the door makes this a convenient option for almost everyone.
Grocery Gateway has a large plant with a high level of technology to organize and pick orders. They also utilize RIMMS software to calculate the most efficient routes to be used by the drivers.
Weaknesses
Grocery Gateway requires a minimum order of $60 which could deter some consumers from ordering if they have smaller orders. With a limited number of trucks and a delivery window of 90 minutes the amount of deliveries is reduced.
Opportunities
With only approximately only 1.79% of the GTA utilizing this method of
Grocery Gateway would like to increase their deliveries from 2.7 to 4 per hour. Dominique Van Voorhis, vice president of industrial engineering and operations systems, must provide recommendations for improving and optimizing the delivery operations.
Situation Analysis
Background
Grocery Gateway, founded in 1997 by Bill Nardo, is Canada’s largest direct online grocer and provides its services to residents of the Greater Toronto area (GTA). The company provides approximately 6,500 items including dry goods, health and beauty products, alcoholic beverages, fresh produce and frozen foods on their website www.grocerygateway.com at competitive prices.
Company Objective
Grocery Gateway provides high levels of customer service as relatively low prices but wish to improve the efficiency of their delivery service allowing them to make 4 deliveries per hour and reduce the delivery window to 30 minutes. This will help them to achieve their goal of 5,000 orders per day within 3 years.
S.W.O.T. Analysis
Strengths
Grocery Gateway, the largest direct online grocer in 2001, is a well established company with 125,000 registered users. They provide a wide variety of items can be ordered from the convenience of your home and delivered right to your door. By providing a broad window of delivery times (between 6:30am and 10:30pm) and allowing payment to be made at the door makes this a convenient option for almost everyone.
Grocery Gateway has a large plant with a high level of technology to organize and pick orders. They also utilize RIMMS software to calculate the most efficient routes to be used by the drivers.
Weaknesses
Grocery Gateway requires a minimum order of $60 which could deter some consumers from ordering if they have smaller orders. With a limited number of trucks and a delivery window of 90 minutes the amount of deliveries is reduced.
Opportunities
With only approximately only 1.79% of the GTA utilizing this method of