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MSU HED 460 - Internet Grocery E-tailing
Course Hed 460-
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Internet Grocery E-tailingDelivery ModelsPreferred Service ModelsFulfillment ModelsFinancialsFulfillment IssuesFulfillmentKeeping Customers in the LoopSlide 9ReturnsDelivery/return solutionsOrder StatusReturns/Back OrdersCost as % of RevenueFulfillment Challenges TodayFulfillment Challenges TomorrowHED 460Internet Grocery E-tailingVery few consumers shop Internet for groceries1 in 5 Internet users who are the primary household grocery shopper are interested42% would like to spend less time shopping for groceriesAlmost 40% Internet users enjoy shopping for groceriesHED 460Delivery ModelsNext day service (Peapod, homegrocer)2 hour delivery window$19.95/monthOrder-on-demand (webvan)30 minute delivery windowPre-scheduled, unattended delivery (streamline, shoplink) $35/monthReceptacles/refrigeratorsHED 460Preferred Service Models2947286723512346010203040506070Store PickupDeliveryC-Store/ mediaC-Store/ mealsAll InternetInterestedHED 460Fulfillment ModelsStores (beeline)Distribution Centers/WarehousesHand held radio frequency scanners to help pick productsDelivery to consumers10 drivers/150 orders, now 28 drivers/500 ordersHED 460FinancialsNo one is making a profitGrocery profit is usually 1-2%Potential profit percent of up to 12%Infrastructure is the main barrier to profitsHED 460Fulfillment IssuesProduct availabilityOrder processingDeliveryReturnsCustomer serviceHED 460Fulfillment8785847875490102030405060708090Fulfillment Capabilities ExpectedVerify rcpt.AvailableVerify shipStatusBack orderLocal returnHED 460Keeping Customers in the LoopCircuit CityLocal store pick-up (Express pickup)Identify up to three local storesChecks availability at the local storesWith Express Pickup no shippingPick up at customer’s convenienceHED 460Keeping Customers in the LoopStaplesEnter zip code at start of shopping for real-time inventory availabilityAnything in-stock is available for next day deliveryHED 460Returns2941530102030405060Return ExperienceReturnedToo much HassleNo EffectHED 460Delivery/return solutionszBox (portal)Eponymous bin for secure delivery and returnActivated by keypad$5/month and $60 security depositEmpori.com (portal)Parcel pick-up and return depots (Toronto) for Internet merchandiseFreeStorage lockers (climate controlled)Accessible by passwordHED 460Order Status94.597.491.753.883.348.777.848.70102030405060708090100Confirm Back Order Shipped TrackingPure PlayMulti-channelHED 460Returns/Back Orders4.35.135.90123456Returns Back OrderPure PlayMulti-channelHED 460Cost as % of Revenue1913141102468101214161820Today 2 YearsPure PlayMulti-channelHED 460Fulfillment Challenges TodayFulfilling orders on timeManaging peak season volumeLowering total fulfillment costsHED 460Fulfillment Challenges TomorrowDistributing globallyLowering total fulfillment costsManaging peak season volumeKeeping up with order


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MSU HED 460 - Internet Grocery E-tailing

Course: Hed 460-
Pages: 16
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