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I.

BACKGROUND

Theorganicgrocer.com is an online supplier of organically produced fruits


and vegetables. Clients within a 50 km radius of Bangor in Wales are promised
next-day delivery at a time and place selected by the customer. Maria Heales, a
joint owner says, “Our business has been based on market research. We’ve done
a great deal of background work to ensure our business model works.

All the early signs suggested that people would order online if the quality
was good, payment was secure, the price was right and delivery could be
trusted. . . . ‘Dependability, reliability, timeliness, quality and price’ were the words
that sung out.” she says. The service offering includes delivery, 9 A.M. to 9 P.M.,
six days a week; organic produce; and customer-specified date and time of
delivery.

II. POINT OF VIEW: This case describes an online supplier of fresh fruits and
vegetables named Theorganicgrocer.com. The company has gained a good
reputation for its fresh products, quick delivery, and user friendly website.

III. OBJECTIVES: This case is designed to be used as either a class discussion


case study or an assigned homework reading. Major points to be brought out in
the discussion include:
1. Understanding the differences and similarities of the conventional and online
business, 2. Key processes of electronic operations
2. Challenges of the electronic business in general and electronic operations
management in particular, and
3. The impacts of electronic operations on the competitiveness.

IV. STATEMENT OF THE PROBLEM


1. What are the comparative operational differences of a conventional “bricks and
mortar” grocery to an online operation? What are the comparative value chains for
each system?
2. What are the key processes in the online operation?
3. Where are the possible operational problem areas of their online business, now
and in the future?
What operational improvements need to be taken now to improve
competitiveness?

V. Companies involved in the case


1. Maria Heales – a joint owner
2. Marcus Heales – Maria’s husband and business partner

I. TOWS (Threats/Opportunities/Weaknesses/Strength)
 Threats
 There are a lot of new online suppliers that could be the best competitor in
this kind of business.
 Negative feedback from unsatisfied customer will be read automatically
by potential client that could affect their decision in choosing the product.

 Unexpected natural disasters which could delay on the delivery of the


products.

 Opportunities
 Offers a different way in buying organically produced fruits and vegetables

 Provide convenience in terms of purchasing the things that you need and
hassle free in payments

 Weaknesses
 High the cost to expedite operations or shipments is high
 Shipments of wrong products, materials, and parts
 High inventory costs

 Strengths
 Gives free boxes to customers
 More updated features , fresh and fast delivery to the consumer
 User friendly website

VI. CONCLUSION AND RECOMMENDATION


Question 1: What are the comparative operational differences of a conventional
“bricks and mortar” grocery to an online operation? What are the comparative
value chains for each system?

The students should be able to discuss a number of key aspects of conventional


and online operations and supply chain:
a. The structure: Conventional supply chain Online supply chain
b. The physical flow: delivery time, transport, inventory management, capacity
planning, and so on.
c. The information flow: links between the buyers and sellers, information sharing,
electronic data interchange, and enterprise resource planning.
d. Order fulfillment, electronic procurement, and electronic customer relationship
management.
Question 2: What are the key processes in the online operation?
Students are expected to address and discuss the following processes and their
elements in the context of the case study: Electronic Customer Relationship
Management
1. Customer acquisition (pre-purchase support)
2. Customer support during purchase
3. Customer fulfillment (purchase dispatch)
4. Customer continuance support (post-purchase) Electronic Purchasing

1. Vendor evaluation and selection


2. Vendor qualification
3. Electronic transaction
4. E-procurement methods (e.g. electronic auction).
Electronic Fulfillment
1. Customer electronic payment
2. Electronic customer order processing
3. Stock/inventory planning and management
4. Shipment management and insurance
5. Warehousing

Question 3: Where are the possible operational problem areas of their online
business, now and in the future?
Student should address the following problems:
• inability to deliver products on time
• high inventory costs
• quality problems
• shipments of wrong products, materials, and parts
• the cost to expedite operations or shipments is high
Question 4: What operational improvements need to be taken now to improve
competitiveness?
Techniques or solutions to manage the electronic operations and supply chain
management could be listed as follows: - Third-party logistics (3PL) suppliers:
External, rather than in-house, providers of logistics services - Improvements in
the order process
• Order taking can be done via EDI, EDI/Internet, Internet, or an extranet, and it
may be fully automated
• In B2B relationship Theorganicgrocer.com has with its franchisees or restaurant
customers, orders are to be generated and transmitted automatically to suppliers
when inventory levels fall below certain threshold resulting in: fast, inexpensive,
and more accurate order-taking process
• In B2C relationship with final consumers, Web-based ordering using electronic
forms expedites the process makes the process more accurate (intelligent agents
can check the input data and provide instant feedback) reduces processing cos.
II. REFERENCES
https://theorganicgrocer.com/?fbclid=IwAR0gWwpHKxLQUJtQiop_0IbhwvI5e-Ib4
DJkqOSMG73NyUo7KvZJv8m4zYo.