What information systems are used at Grocery Gateway to help them make decisions? Would you classify these systems as TPS, DSS, or EIS? The web site acts as a TPS as it supports customer transactions. Logistic Management System is a mostly a DSS with some aspects of an EIS incorporated into it as analyzing some of its data can lead to strategic decisions.
How do these systems support operational, managerial or strategic level decisions? TPS collect operational data that allows the organization to fulfill daily operations such as the web site which collects customer orders which in turn cause Grocery Gateway to need to make decisions about products, deliveries, etc. The logistics management system also fulfill some operational decisions as it allows for decisions around deliveries, routes, and other operational issues involved with deliveries. It also allows for decisions around become more efficient in routing and deliveries from analyzing the data and in turn can lead to strategic level decisions around deliveries and even web site strategies and changes.
What steps could the company take to leverage the transactional data that is collected by the information systems outlined in the case to help make managerial and strategic decisions for the company? The company can start to use different types of analysis on the data to help them make analytical and strategic decisions for the company. The types of analysis include:
- Sensitivity Analysis
- What-if Analysis
- Goal Seek Analysis
These analyses can then be tied to digital dashboards for more instantaneous access to the analysis and give Grocery Gateway information on items like the market pulse, customer service and cost drivers.
Identify a few key metrics that Grocery Gateway marketing executives might want to monitor. Grocery Gateways customers are generally busy people with not enough time on their hands want an easier and quicker way of doing their chores. Also, people who are physically challenged and find shopping difficult, or those who do not own a car can find this service beneficial. Some key metrics might be:
- Best-selling product
- Worst selling product
- Date of highest sales per month
- Date of worst sales per month
- Correlation between product sales
- Distance to nearest grocery outlet
- Sales by region
- Sales by season
- Time to delivery of goods
Describe how Grocery Gateway’s customer Web site supports Grocery Gateway’s business processes. The web site allows customer to access its products 24 hours a day, 7 days a week in a simple way. Besides supporting online merchandising, single item picking, home delivery operations, and customer service it also allows them to use the web site to retain customers.
Describe how Descartes’ fleet management software improved Grocery Gateway’s logistics business processes. Some business improvements experienced by Grocery Gateway include reduced delivery time by 14 percent, and increasing the stops per hour for delivery trucks by 12. 4 percent. They have also improved the ordering processes and delivery mechanisms, and gained a solid and repeating customer base.
How does the business process affect the customer experience? The company’s bottom line? There are numerous benefits Grocery Gateway could offer its members including additional discounts for frequent shopping, menu planning, foods tailored to specific dietary needs only available to Grocery Gateway members, a Grocery Gateway calendar featuring Grocery Gateway coupons and only available for sale to Grocery Gateway members, and even recipes and online cooking tips for different kinds of foods.
What other kinds of information systems could be used by Grocery Gateway to improve its business processes? Answers will vary and could include a number of different kinds of information systems. Some suggestions include:
- Customer Relationship Management Systems
- Supplier Relationship Management Systems
- Employee Relationship Management Systems
Comment on the need for integration between the various types of information systems at Grocery Gateway. What benefits from integration do you see for the company’s various business processes? What challenges do you think will exist in facilitating such integration? There needs to be a great deal of integration of the systems as not only do the products that customers are ordering need to be available for delivery, the time windows that customers request deliveries in must be integrated not only into the delivery schedule but also the routing. The benefits are many and Grocery Gateway is already seeing some of these benefits such as the optimization of delivery routes which result in better customer satisfaction and cost savings.
The 14% improve in on-time delivery and the 12. 4% increase in yearly paid stops per paid hours, are a metrics that show these benefits. The challenges are also great and start with the need to bring employees together to develop the “As-Is” model and the “To-Be” plans so that the integration is possible in the first place. The other major challenge is that the project of integrating business processes is very large.
