Grocery Gateway Case

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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.…show more content…
More specifically, they are trying to become cash flow positive on a variable cost basis while at the same time fine-tuning the operation side if things. Currently, their logistics operations are not achieving the desired delivery times of 4 stops per hour on area (SPHOA), therefore, their current goal is to achieve the 4 SPHOA while simultaneously reducing deliver windows to 30 minutes. They must effectively devise a plan that optimizes their logistic operations to ensure meeting the 30 minute delivery window to allow them to deliver the long term target of 5,000 orders per day. 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

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