Supply chain management assignment

Topic- grocery delivery in united states

SUBMITTED BY- SUBMITTED TO-

NAME- AKASHI GUPTA NAME- MR. SUMIT BHATIA
ADM NO- 22GSOB1110035
SECTION- 18
AGENDA
• summary
• Picking, packing, delivering
• Consumer preferences
• QUESTIONS AND ANSWERS
• conclusion
 summary

• Certainly! The evolution of grocery shopping in the United States witnessed a transition from
traditional stores to the advent of self-service supermarkets, and eventually, online grocery
delivery services. Pioneered by the likes of Piggly Wiggly and later explored by companies such as
Webvan, Peapod, and Amazon Fresh, the grocery delivery landscape faced substantial challenges
in maintaining product quality, efficient packing, and last-mile delivery.Consumer preferences have
been integral in shaping the market, with demands for low prices, minimal delivery charges, short
delivery windows, and high-quality, fresh products. Despite the potential and growth projections
for online grocery sales, customers exhibit a low tolerance for errors or delays in
deliveries.Notably, Peapod, Amazon, and Whole Foods (acquired by Amazon) have made strides
in the online grocery space, each employing various strategies to meet customer needs, such as
personalized product selection, diverse delivery options, and membership incentives.Overall, the
grocery delivery market in the U.S. has seen significant growth potential but remains challenged by
consumer expectations, particularly in terms of maintaining product quality and ensuring flawless
delivery services.

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picking, packing, delivery
QUESTION AND ANSWERS-

QUE-1 What distinguished Webvan from other early innovators in the online grocery delivery sector during the late 1990s?
QUE-2 What were the major challenges faced by online sellers in handling perishable items like fresh produce and dairy for home delivery?
QUE-3 Why did the complexities of delivering groceries prove to be a significant hurdle compared to the delivery of non-perishable goods?
QUE4- What specific packaging and delivery requirements were necessary to maintain the quality and freshness of perishable items during
transportation?
QUE-5 How did the challenges of the "last mile" of delivery differ between urban and suburban areas for online grocery delivery services?

ANS-1 Webvan was distinctive among early innovators in online grocery delivery due to its ambitious and costly infrastructure. It invested
heavily in building automated warehouses and a robust delivery network, aiming for a comprehensive end-to-end solution. However, this
ambitious approach led to high operational costs, contributing to its downfall when it couldn't sustain its operations and eventually filed for
bankruptcy. Other competitors took different, often more conservative approaches, focusing on partnerships or utilizing existing
infrastructure, which allowed them to survive the dot-com crash that Webvan couldn't weather.

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 Handling perishable items for home delivery posed several challenges for online sellers:Temperature Control: Maintaining the right
ANS-2 temperature throughout the delivery process to ensure the freshness and quality of perishable items was a major hurdle. Fluctuations in
temperature during transit could affect the quality of fresh produce and dairy.Short Shelf Life: Perishable items have a limited shelf life
compared to non-perishables. Coordinating logistics to ensure quick delivery from the storage facility to the customer's door became
crucial to prevent spoilage.Packaging: Finding suitable packaging materials that maintain the freshness of the products while also being
environmentally friendly was a challenge. Packaging needed to protect items without excessive waste.Last-Mile Delivery: Ensuring timely
and efficient last-mile delivery was crucial. Quick delivery was necessary to maintain the freshness of the products, but it also presented
logistical challenges in coordinating routes and delivery schedules.Customer Expectations: Meeting customer expectations for the quality
of perishable items upon delivery added another layer of complexity. Customers expect these items to arrive in a condition as fresh as if
they had picked them themselves from a store.Solutions to these challenges often involved innovative packaging designs, specialized
delivery systems, improved logistics coordination, and leveraging technology to monitor and maintain optimal storage and transportation

ANS-3 Delivering groceries, especially perishable items, presented greater complexities compared to non-perishable goods due to several
factors:Logistical Challenges: Perishable items have shorter shelf lives and require specific storage and transportation conditions to
maintain their freshness. Coordinating the logistics of delivering these items quickly and efficiently without compromising their quality was
a significant challenge.Temperature Control: Maintaining the right temperature during transit was crucial for perishable goods. Unlike non-
perishables, which can endure various temperature conditions, fresh produce, dairy, and other perishables require controlled environments
to prevent spoilage.Packaging Considerations: Perishable items often needed specialized packaging to preserve their quality. Finding
packaging solutions that balance protection, insulation, and environmental sustainability added complexity to the delivery process.Last-Mile
Delivery Challenges: Delivering perishable items directly to consumers' homes within a short time frame was essential. This required
sophisticated last-mile logistics to ensure timely deliveries while maintaining the items' freshness.

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ANS-4 Maintaining the quality and freshness of perishable items during transportation required specific packaging and delivery
considerations:Insulated Packaging: Using insulated packaging materials, such as foam, gel packs, or insulated bags, helped regulate
temperature during transit, preventing rapid temperature changes that could affect perishable items like fresh produce and
dairy.Temperature-Controlled Environments: Utilizing refrigerated trucks or insulated containers equipped with temperature
monitoring systems ensured that perishable items remained within the ideal temperature range throughout the entire delivery
process.Quick Delivery: Efficient logistics and delivery systems were necessary to minimize transit time. Shorter delivery windows
ensured that items reached customers promptly, reducing the time perishable goods spent in transit.Specialized Packaging Designs:
Packaging specifically designed for perishable items allowed for proper ventilation while also providing protection. For example,
breathable packaging materials for fresh produce allowed airflow, preventing moisture buildup that could lead to spoilage.

ANS-5 The challenges of the "last mile" of delivery for online grocery services varied significantly between urban and suburban
areas:Urban Areas:Density and Traffic: Urban areas often had higher population density and more traffic congestion. Navigating
through crowded streets and dealing with limited parking posed challenges for delivery vehicles.Complex Delivery Routes: The
intricate layout of urban streets, one-way roads, and pedestrian-heavy areas made route planning more complex and time-
consuming.Apartment Complexes and High-Rises: Delivering to multiple floors in apartment buildings or high-rise complexes
required additional time and effort for delivery personnel.Suburban Areas:Spread-Out Locations: Suburban areas typically had
more spread-out residences, meaning longer distances between delivery points. This increased fuel costs and required more time
for each delivery.Less Traffic, More Distance: While suburban areas might have had fewer traffic issues compared to urban zones,
the longer distances between deliveries increased the overall time spent per delivery route.Driveway Access: Suburban homes often
had driveways or larger spaces for parking, making it easier for delivery vehicles to stop directly at the customer's doorstep.
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 CONSUMER PREFERENCES
In 2020, groceries were a $1 trillion market in the United States.
Online grocery sales accounted for 10% ofthe market and were
predicted to grow to more than 20% by 2025.Per week, an average
household visited grocery stores 2.1 times and spent $109.
Households regularly con-sumed and replenished groceries, so most
consumers were reluctant to splurge on them. Regular
purchasesmeant that consumers with the in-store cost of groceries,
and they resisted paying higher prices. This prefer-ence was
reinforced by Amazon and other online retailers that had created an
expectation that online pricesshould be the same as—or even lower
than—those in stores.

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 AREAS OF FOCUS

CLOUD-BASED
B2B MARKET SCENARIOS OPPORTUNITIES
• Develop winning strategies to keep • Iterative approaches to corporate
ahead of the competition strategy
• Capitalize on low-hanging fruit to • Establish a management framework
identify a ballpark value from the inside
• Visualize customer directed
convergence

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 CONCLUSION

• It seems you've outlined the evolution of grocery shopping in the United States, from
the innovative self-service model introduced by Piggly Wiggly to the modern-day
challenges faced by online grocery delivery services. The progression demonstrates
how consumer preferences, technological advancements, and logistical complexities
have shaped the industry over time. Would you like to delve deeper into a specific
aspect or have any particular questions about this information?

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THANK YOU