Case Report

9306 words 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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cation allows for increased capacity to process orders

• Dedicated to customer satisfaction

• Well-developed order fulfillment process

• Products are priced competitively with grocery retailers

Weaknesses

• Target SPHOA of 4 not being met

• Deconsolidation required for batch picking strategy on B & C items slow down the fulfillment process

• Fragmented IT system consisting of 5 different systems used for order generation and execution

• Drivers collecting payment slow down delivery times

• Order changes allowed up to 14 hours prior to delivery

• Drivers prepare invoices slowing down delivery times

• Customers are expected to place a minimum order of $60 per order

Opportunities

• Possible expansion

• Payment completed prior to delivery to enhance actual delivery time

• Integration of 5 technology solutions systems currently being used to increase effectiveness and efficiency

• Open small “satellite” fulfillment centres around GTA to assist with quicker delivery times

• Prepare invoices in advance of delivery to speed up the delivery process

• Good growth potential in the GTA area (population)

Threats

• Threat of new entrants within this sector which exposes them to higher competition levels

• Seasonality (peak period between November and April)

• Fluctuation of gas prices effect profitability

• Traffic congestion levels in the GTA are high

• Economic downturns would greatly affect this service as it is

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