In: Operations Management
The analysis and possible recommendation completed in Grocery Gateway.
Grocery Gateway operated by longo brothers fruit market inc is Canada’s leader in online sales of home delivered groceries. It was founded in 1997 and it had been able to achieve only 2.7 stops per hour on area (SPHOA) , which was 67.5 % of its target .Grocery Gateway's delivery fleets make close to 500 stops per day to meet the needs of 15,000 active customers
To Make sure that orders are delivered with in the prescribed time and that it can quickly respond to last minute customer requests or cancellations as well as unpredictable delays, Grocery Gateway needed optimized routes and real-time visibility into its delivery operations.
Grocery Gateway uses a fundamental Logistics Management System to help their staff make decisions. At which these logistics business processes help optimize their selection of delivery routes to fulfill their goal of having maximized efficiency in these delivery route selections. To achieve their goal, they have to include historical delivery data with real-time information into route selection determination.
Their Logistics Management System would be classified as a Decision Support System because their computer-based information system will support Grocery Gateway’s decision making by collecting, organizing, and analyzing their business data. They would have functions built into the Web site, such as item searching, grocery ordering, customer profiling, electronic payments, and delivery scheduling.
In 2006 GG started using Cube Route's on demand logistics management solution to optimize its routes for maximum efficiency and gain real-time visibility into its delivery operations. A combination of sophisticated routing, tracking, planning and dispatching functionality provided by Cube Route enables Grocery Gateway to guarantee on time deliveries to the door within a specific 90-minute window
Due to which ,Grocery Gateway has improved its on time delivery performance by 14% and is exceeding its yearly stops per paid hour by 12.4%.
Using GPS-enabled mobile phones, Cube Route initiates visibility the moment a Grocery Gateway driver departs for the first stop. This automatically updates the planned route and all its associated metrics. Drivers simply push two buttons on the phone on completion of deliveries to report back to head office. GPS pings are also sent from the phone, automatically updating the location, speed, and direction on maps that can be accessed anywhere through a standard web browser
This is how GG is getting operated and grown to one of the top most leading online delivery of grocery items