Grocery Gateway Case Analysis

2964 Words12 Pages
1. Executive Summary Grocery Gateway, founded in 1997, was Canada’s largest direct online grocer in November 2001 with approximately 125,000 registers shoppers. The convenience of online shopping is still in its early growth stages and Grocery Gateway has already established a known recognizable reputation and holds a large market share. However, tTo hold on to this competitive advantage and improve profits, Grocery Gateway must improve its efficiencies by making better use of its resources and consider potential capital investments. Dominique Van Voorhis, VP of industrial engineering and operations systems, is looking for recommendations aimed at improving delivery operations. The following alternatives for improving delivery operations were evaluated in more detail: Alternative #1 – Keep the trucks on the road longer by extending driver shifts Alternative #2 – Modify RIMMS program to analyze route profitability and modify route schedules accordingly Alternative #3 – Increase Delivery Charge It has been recommended that Grocery Gateway (GG) should modify the RIMMS program to analyze route profitability and modify route schedules accordingly. Although this represents a significant investment, this strategy will be integral in achieving their objective of 4 stops per hour on area and reach their target growth of 5000 orders per day. Grocery Gateway must seriously consider the capital investment to ensure that their business will be able to grow and remain competitive. 2. Problem Statement The monthly report for Grocery Gateway identified a weakness in delivery operations. Dominique Van Voorhis, vice-president of industrial engineering and operations systems, is required to develop a solution that will improve the efficiency of delivery operation, without sacrificing the overall company’s strategy. 3. Company Objectives Grocery
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