Grocery Gateway Prepared by: Jeff Smith Grocery Gateway: Customer Delivery Operations Nature of the business: * Located in the Toronto Area, Grocery Gateway has been the largest online grocer since November 2001. They have approximately 125,000 registered consumers. These consumers shop online, picking their products from a selection of 6500 products that include dry goods, health and beauty products, alcoholic beverage, fresh produce and even frozen foods. The broad/generic industry is the food industry. The narrow product is groceries. The core product is food, the actual product is groceries delivered, and the augmented product is good customer service and convenience. Orders are to be a minimum purchase of 60$ including …show more content…
It is also a market that is relatively untapped (e-commerce groceries) while at the same time servicing a market that is always needed (people always need to eat). However, in unstable economic times, people will unlikely pay for a luxury service such as this. People with low discretionary income will go to a local grocery store and buy food on sale, instead of paying for extra delivery fees. Another cost saving benefit of ordering online is saving on ever increasing gas prices. * Social: * The largest demographic in Canada is that of the aging one. This has a wonderful impact on people who are perhaps too frail or too sick to go and get their own groceries, but still want home cooked meals. This alternative gives these types of people the freedom to continually eat fresh foods without having to go and physically get them. This system is also good for people who are time poor. People who work longs hours, have big families or who simply don’t care for the shopping experience will also utilize this method of obtaining good wholesome food. Also, many people in the Toronto area do not own a vehicle and they rely on the transits to go places, it is difficult to carry all of your groceries onto the transits and then walk them to your house. * Technological: * Grocery Gateway has five main technological systems. They have a Web-order processing system which was developed in-house. The orders are downloaded from the order system into the research in
Because the retail grocery market is typically low margin, “typically in the mid-single digit range”.(VALUELINE, 2013) It is critical for companies to have some type of cost advantage over peers, the larger chains may be able to obtain better and cheaper access to products than the independent stores(economies of scale). Labor is also a significant cost to retail grocers, representing 50% to 53% of total operating costs (EHOW, 2013). Other operating costs (including rent, utilities, transportation, and technology) are controllable by the company. Lastly, technology costs are key in the retail grocery industry in order to increase efficiency in operations and aid marketing aids. Point-of-sale systems can help to increase inventory turnover and sales and lead to better targeted customer marketing (COUNTERPOINTPOS, 2013)
The grocery industry has a relatively high market commonality; a lot of grocery stores are somewhat related in terms of technologies used, labor force and the products or services offered in the stores. Differentiation with other competitors is key for survival in this highly competitive industry.
The literature below is a research about self-checkout machine in Tesco supermarkets, and it aims at answering; the reasons that Tesco has changed, importance of self checkout systems in Tesco and challenges faced by the self checkout systems. TESCO is a chain of supermarkets stores originally from the U.K; they have expanded rapidly over the past few years. These stores are of general merchandise that carries everything from clothing, deckchairs, groceries, petrol stations, wines, consumer electronics, DVD and CDS. TESCO has stores in North America, Asia and Europe that operate under the TESCO brand. It operates hypermarkets, supermarkets and convenient stores. TESCO services allow their customers to do their shopping from the comfort of their chairs; because delivery is done to their homes, and it also offers internet shopping services.
If they succeed, other companies will probably go the online rout as well. This temporary competitive advantage will contribute to above-normal profits for Grocery Checkout, until other grocery supermarkets nullify the advantage.
Grocery shopping is more diversified and evolved than ever before. Individuals across the nation have access to everything from exotic products to unique delivery services. Often, specialty stores have limited locations whereas specialty services have a limited reach. However, two retailers have expanded to hundreds of locations while adhering to unexpected market positioning for previously untargeted market segments. Whole Foods Market and Trader Joe’s have become household names while also innovating beyond regional and national traditional chains. Despite comparable size in
Grocery, Inc. Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Grocery has written contracts with many different vendors to purchase the products they sell in their stores. Vendors range from individuals to international corporations. Tom works as the produce manager for the store in My Town, U.S.A. Jeff, 17 years old, is spending his summer vacation working for Tom in the produce department.
Value proposition around web-based shopping is that customers can order online and have groceries delivered to their home without having to visit a grocery store. Another value add is around time savings, online shopping is converting
Food security is the reassurance you will have food on the table for family and yourself. People must wonder how food is gathered in the north - being such a “cold- dead land” a Torontonian stays somewhere in Toronto. Food is brought from Nutrition North Canada (NNC), which is a Government of Canada subsidy program to provide Northerners in isolated communities with improved access to perishable nutritious food. This program launched in April 1, 2011 which took over Food Mail (Canada, How Nutrition North Canada works, 2014). The eligible communities allowed for this program must have a lack year-round surface transportation and had already used Food Mail (Canada, Eligible Communities, 2014).
Online shopping has been growing since businesses put the first online store on the web, now you can shop from anywhere around the world and have it shipped to you directly. Comparing the product against other online store competitors; making it easier to find the best price on the web. You can research the product and make sure this is what you need before buying it. The internet is a twenty-four hour shopping center, you can shop at whatever time you want and wherever you have time for it, making it more convenient to use online shopping. Using it can create more time for the things you would like to do. The negative side of online shopping is you have to wait until the product is shipped to you. The shipping and handling charge is increased for more expedited shipping. There are instances you pay more in shipping than you do for the actual product. Beside shipping charges to purchase, there are shipping charges when you need to return the product back. Also there are those computer problems that can appear; you do not always know if your personal bank information is being
This section will analyze the background, scenario, aim and reason behind to choose this particular topic that is Online Grocery (E-Grocery).
The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures
1. As a customer, what do you want from an online grocery store? How does consumers’ behaviour differ when shopping for groceries on-line vs. off-line? What are the implications of these differences on the operations of an on-line vs. off-line store?
You can buy anything from baby food to prescription drugs on the internet and it will be delivered in a timely fashion to your front door. No line, no commute time, no annoying shoppers and no incompetent sales persons.
The groceries segment of India is one of the major components of the Indian retail market of which the groceries holds a whopping share of 60% as food is the basic requirement of all the people irrespective of their class. Online grocery shopping is one of the mega-trends which involves sale and purchase of groceries over the internet. The concept though conceived in the west is gaining lot of popularity in the emerging markets of India. Since the industry is growing at a tremendous pace it has attracted huge investments by venture capitalists and angel investors. The market has seen lot of emerging players of which Big Basket, Zopnow, Aaramshop and Local Banya leads from the front. These startups have been very successful because they currently are present in different cities and commanding leading sales. Although online grocery shopping is yet to catch up with the residents of many cities, yet all these e-commerce companies have started operating in many metro cities with an aim to change the way people do their grocery, veggie and staples shopping. Penetration of internet and the rise in the public's demand for convenience shopping among the population has
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.