Online Grocery Sector Models

Opentaste can use either take a decentralized or centralized approach when they are taking their operations ‘online’. There are many factors that Opentaste should be considering when operating online they are inventory and logistics management, value chain, and cost implications. To propose a solution for the Opentaste, many models within the sector should be analyzed and evaluated. One of the models which are used when operating online is where the employees simply pick the products from the existing local outlets for doorstep services. This model is still used by Sainsbury’s where they use a decentralized approach in order to achieve customer satisfaction. Moreover, Tesco, Asda, and Waitrose agreed to extend the space provided to the internet distribution center, called dark stores, due to an increase in demand for online order.

The appropriate solution for Opentaste to remain a competitive advantage

Proposed Solution

Parcel Conundrum

It is also important for the company to notify the customers about every process so that they are aware of the goods and where they are, they can be notified through the email and SMS so that it is easier for the customer to track the deliveries, this will reduce the second trip of the delivery as people will be known when the goods will be arriving, customers will make sure that they are home to take the deliveries. This will not only save time but will also help them in reducing the CO₂ emission. It is the company responsible to follow a green logistics. According to the study it has been found that second trips for the delivery increase the CO₂, which can very harmful for the environment. Tesco, Asda, Sainsbury’s, and Waitrose all of them offer a click and collect the service.

Implementation of the New Process

The manager needs to consider many factors when going online these aspects are cost, flexibility, speed, quality, and dependability. One thing should be constant and should be followed continuously is that all the process should take place at a minimum cost. At the same time, it is important to provide timely delivery, orders should be processed in a speedy manner, and notification should be also provided to the customer in a timely manner, all this should be processed in a flawless manner. The main motto of the company is convivence hence receiving and collecting the order should be done in such a manner that the option is viable for the customer. At the same time, it is important for the company to have a flexible model in terms. Dependability is very crucial for the Opentaste and should focus on the substitute of the product and should also make sure that the product picked is right. Therefore, it could be said that change management is crucial for the company. Krueger has stated that change management is basically a theory, in which the manager should focus only on the top levels which include quality, time, and cost. However, he further stated that it is vital for the managers to focus on the bottom level as well, for the successful implementation of the new system. The bottom level includes the two very important aspects they are beliefs & perception; power & politics. It’s the responsibility of the manager to assure the employees so that they are open for the new system, they can be encouraged through many ways such as training and providing them rewards for the successful completion of the organizational goal. Kotter had a similar view, believed that management evolves around three aspects that is how the company plans, controls, and implements, adopting these measures will help Opentaste in gaining the support of the employees which is required for the smooth transaction which will take place in the new system.

Balanced Scorecard Measurement of Performance

Balance Scorecard is a management model which was proposed by the Kaplan and Norton in 1992, this model helps in improving the financial stability of the company. through this model, the company recognizes the weakness which is in the previous approaches used by the company. The balanced scorecard helps in providing the linkage between the four aspects that is a financial perspective, customer perspective, internal process perspective, and learning and growth perspective. Through this model, financial and non-financial measures of the company are monitored and controlled. It provides clarity on what the company should do to manage their customer and customer satisfaction. This is also one of the tools which are used by the manager which guides them in various aspects. Key performance indicator (KPIs) helps the company in analyzing which factors are important for the success of the organization, where the goals are specified.

The financial performance of the Opentaste has significantly improved in 2019 some of the major reason which is responsible for this improvement increase in the revenue. Implementing the online system will provide Opentaste in improving its financial performance further through increasing its revenues, decreasing its operating cost, and by increasing the gross margin. The online system will increase the revenue by attracting more customers which will be done through promoting their website and by analyzing the market requirements so that they can stock the products which are in need. The online system will also help in decreasing the operational cost, which can be also achieved through green logistics and enhancing the financial process of the company. Lastly, the gross margin will increase through implementation of the online system as the company will get better deal form the manufacturer and increase in sales will bring down the cost per unit result, hence will provide a higher margin

Therefore, it can be said that implementing the online system will improve the financial position of the firm.

Customer Perspective

Internal process perspective