GROCERY GATEWAY

Why did Grocery Gateway relocate its fulfillment center from Mississauga to Downsview?

• To expand its product offerings

• To optimize warehouse layout for e-commerce logistics

• To reduce rental costs

• To be closer to its investors

What potential risk comes with raising Grocery Gateway’s delivery fees?

• Increased warehouse costs

• Lower customer retention due to price sensitivity

• More customers switching to larger bulk orders

• Increased competition from luxury grocery brands

If Grocery Gateway expanded nationwide, what would be the biggest logistical challenge?

• Managing relationships with suppliers

• Hiring more customer service representatives

• Ensuring consistent delivery efficiency across different cities

• Redesigning the website for larger audiences

What was the biggest competitive threat to Grocery Gateway’s success?

• New startup grocery delivery companies

• Traditional grocery stores launching online delivery services

• High warehouse automation costs

• Lack of customer interest in online grocery shopping

Why might partnering with local grocery stores be a better strategy than maintaining its own fulfillment center?

• It would reduce transportation costs significantly

• It would lower warehouse costs while maintaining product variety

• It would improve customer service

• It would increase the number of delivery trucks required

Why was Grocery Gateway’s delivery efficiency lower than expected?

• Customers canceled orders frequently

• Drivers faced long wait times at grocery stores

• Traffic congestion and inefficient route planning

• The company had a shortage of delivery vehicles

If Grocery Gateway wanted to increase delivery speed, which strategy would be LEAST effective?

• Upgrading route optimization software

• Reducing the variety of items available for sale

• Increasing the size of its delivery fleet

• Offering in-store pickup instead of home delivery

f Grocery Gateway introduced drone delivery services, what would be a potential limitation?

• Customers preferring traditional delivery trucks

• Difficulty transporting large orders

• Reduced demand for online grocery shopping

• Lack of government regulation on drones

What was a key challenge of offering 90-minute delivery windows?

• Customers often missed their delivery time slots

• It required highly efficient logistics to fulfill multiple orders per trip

• The company lacked enough trucks to make deliveries

• Competitors offered shorter 30-minute time slots

What was a potential benefit of reducing the number of SKUs (products) available for online ordering?

• Lower costs due to reduced warehouse space and inventory management

• Increased customer retention due to limited options

• Higher delivery fees due to increased efficiency

• Reduced demand for home delivery services