Case Homefresh - SCM E-COMMERCE CASE: HOMEFRESH Homefresh...

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SCM E-COMMERCE CASE: HOMEFRESH Homefresh was set up in 2000 as a ‘pure player’ in the e-grocery market with an initial investment of £120 million in four new purpose-built ‘fulfilment centres’ (i.e. dedicated order picking centres for home-deliveries) in the south of England, a fleet of delivery vans and a web- site which has won awards for its user-friendliness. By 2006 the company had extended its market as far north as Manchester and added a further 20 fulfilment centres to its network. In that year, the company acquired 80 supermarkets from a national chain and converted them into fulfilment centres. This enabled the company to extend its home delivery service to approximately 72% of UK households. Along with the supermarkets, Homefresh also acquired two regional distribution centres which it now uses to supply the fulfilment centres. Homefresh currently holds 27% of the online grocery market. This share has declined from its peak of 34% in 2007. Homefresh’s two main competitors, retailers A and B are large supermarket chains (so-called ‘bricks and clicks’ retailers) with respectively 25% and 21% of the traditional shop-based
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This note was uploaded on 10/01/2010 for the course BAFT mba12ehtp taught by Professor Angwi during the Spring '10 term at Télécom Paris.

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Case Homefresh - SCM E-COMMERCE CASE: HOMEFRESH Homefresh...

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