Case Study Composition

Management Info Systems 13e




FreshDirect Uses Business Intelligence to control its

On-line Grocery





SUMMARY FreshDirect is the most significant online grocery firm inside the New York industry, and one of many largest in the area. With more than two hundred and fifty, 000 buyers ordering over 8, 500 products every single day, the company encountered severe strategies and management decision making issues. To solve problems, FreshDirect followed a comprehensive enterprise data bottom system via SAP which usually utilized a number of business intelligence applications to track purchases and customers. The video explains how the repository system allows managers to regulate FreshDirect's daily operations and plan longer-term enhancements. L=4: 30.


CIRCUMSTANCE FreshDirect can be an online grocer making more than 45, 1000 deliveries every week to clients throughout the majority of New York City and parts of Li, Westchester State, New Jersey and Connecticut. With revenues getting close to $300 million a year, the business seems to be mostly of the examples of a start-up, on the net grocery organization actually being profitable. Most previous start up, online food stores have failed, while existing traditional grocery stores have been more successful in on the web delivery using their local physical stores. For example, a leading example of dot-com excessive was the fire out of online grocery start-up Webvan in 1999.



Webvan burned through $1. a couple of billion from investors in order to launch it is online grocery store business in ten marketplaces. Webvan gone bankrupt in 2001. FreshDirect was founded in 1999—just before the burst online bubble. The business enterprise plan for on the net groceries was going to focus on a high-density, sole metropolitan place like Manhattan in Nyc, to offer farm-fresh food, and deliver it on-time for prices regarding 15% below local shops. A solid urban region meant fewer delivery vans would be necessary, and common incomes had been quite high in Manhattan. Many investors and commentators thought the task hard, if not really impossible. For many years it was a variety of both.

FreshDirect built a 300, 000-square-foot headquarters and refrigerated providing plant in 2000 in the Long Island Metropolis section of A queen and made their first deliveries in 2002. The FreshDirect Web site features around 3, 000 perishables and several, 000 packaged goods when compared to typical twenty-five, 000 packed goods and 2, 200 perishable items that a typical food market offers. To provide the level of support it wished, FreshDirect created the most modern automated perishable foodstuff processing plant in the United States. While many of the grow is stored at 36 degrees to ensure freshness and quality control, dedicated areas vary from a low of minus 25 certifications for freezing foods into a high of sixty two degrees in one of its specially designed fresh fruit and vegetable rooms. FreshDirect butchers meat from whole carcasses, makes its own chicken, cuts up its own seafood, grinds coffee, bakes loaf of bread and pastries, and cooks entire prepared meals. Cleanliness is an obsession— our factory was created to exceed U. S. Office of Farming standards.

Irrespective of attention to creation detail with the plant, coming from 2002 till 2008 FreshDirect burned through investor money as it tried to execute upon its strategy. According to current CEO Richard Braddock, nothing went according to the strategy. " We broke lots of eggs. We showed up with thawed goodies. We bruised the develop. We shipped late. Our trucks had been stuck in traffic. We missed things in purchases. We don't remediate assistance issues. ” If a client called to complain, there were no structured way for FreshDirect operations people to find out what occurred or to re-send the order on another truck. Relating to Braddock, the companies...


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