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Grocery Gateway

In: Business and Management

Submitted By abhi6453
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Grocery Gateway Case - LSC1B8 1. As products supplied by Grocery Gateway are functional by nature, the company uses physically efficient supply chain. Online grocery is a low cost margin market with stable demand and requires a supply chain strategy, which focuses on minimizing cost by consolidating transportation and reducing cost of storage. Grocery gateway must focus on improving cost efficiency and making the supply chain more resilient. Cost efficiency can be improved by satisfying customer demand while utilizing the transportation at maximum. For improving resilience, company should develop contingency measures to recover quickly from shocks. 2. From Tarang 3. Strategy | Pros | Cons | Keep trucks on roads for longer | * Targeted number of deliveries will be met | * Drop per hour will remain same * Possibly increase variable cost per hour (overtime to drivers, more fuel etc.) | Route profitability via RIMMS | * Increased margins from low number of drops as variable cost are decreased | * Waiting time for customers on low profitability routes will increase leading to loss of sales | Increase in delivery charge | * Higher margin on drops which lead to realizing target revenue at low drop per hour rate | * Against the value of the firm which is to provide low cost goods to consumer |
4.
a. Grocery Gateway should manage its fleet size so that the revenue generated is greater than the transportation cost. The key factors to be taken into consideration are utilization rate of trucks, productivity and fleet operations and maintenance costs. For stable demand, fleet size can be kept constant and in periods of high variability extra demand can be outsourced. b. Grocery Gateway should serve in batches to distant areas with low demand e.g. Georgetown. Areas with greater demand that are close by should be served with

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