Session18handout

Session18handout - Supply Chain Modeling Session18:Peapod...

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Supply Chain Modeling Session 18: Peapod Atalay Atasu
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Objective of Today’s Class Study the birth and evolution of one of the first  e-grocers (www.peapod.com) Compare and contrast the different operational  strategies/supply chain modes adopted by  Peapod over time Answer the basic questions Does e-grocer business process “makes sense”?  Can internet grocers be profitable? What’s the shortest path to profitability?
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Peapod.com Who has used an Internet grocer? How was your experience? How does it work? Problems you encountered?
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Are Internet Grocers a viable “on- going concern?”
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The “Shopping” Experience Advantages Comparable prices, easy ordering, convenience Disadvantages Procrastination, forced one-place shopping, new  product learning, attended delivery required E-grocers charge delivery fees   Induce customers to  place big orders. Remember the EOQ formula. What are the advantages and disadvantages of online grocery shopping? KC RS EOQ 2 =
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Manufacture r/Distributor Distribution Center Supermark et Store Manufacture r/Distributor Distribution Center Virtual Store Traditional Supermarket vs. E-grocer Supply Chains Tradition al E-grocer
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Understanding the Business: What are the Key Processes? Customer Order Process Fulfilment Process In-store (early Peapod and Tesco model) Centralized DCs (Peapod after 1999 and Webvan) Customer Acquisition Process  Convert visitor to first time customer (17%)
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Session18handout - Supply Chain Modeling Session18:Peapod...

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