Case Report Essays

9300 Words Dec 25th, 2012 38 Pages
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
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Company Background

Grocery Gateway was founded in 1997 by Bill Di Nardo. Since August 2004 it has been operated by Longos Brothers Fruit Market Inc. It is Canada’s largest direct online grocer with 15,000 active customers making 500 stops a day. They offer approximately 6,500 products including fresh meats, produce and organic produce.

In May 2000 they raised $33ML in second phase venture capital. In total they were successful in raising $70ML in private sector financing. This enabled them to move to a 26,000 square meter facility in Downsview. The move and design of the building and it’s capacity to support future objectives.

Their strategy is to focus on low-cost, high service logistics. To manage the logistics of the business they utilize the following systems; web-order system, warehouse management system, order processing system, warehouse control system and RIMMS a dynamic route optimizer solution from Descartes Systems.

The solutions enable Grocery Gateway to maintain delivery windows of 90 minutes for customers and the ability to track historical delivery rates. The system provides access to historical delivery data which has helped to set targets for stops per hour and to improve their service efficiency.

Situation Analysis

Strengths

• Vast customer base

• Low-cost delivery charge to customers

• Large array/selection of grocery

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