Online Grocery Supply Chain: Customer Value and Operations Setup

This lecture explores the design of supply chains in the online grocery industry, focusing on customer preferences and operational strategies of companies like Ocado and Tesco.com. It delves into key aspects such as customer expectations, market growth projections, online sales data, and the operational models of leading players. The discussion covers topics like product variety, pricing, delivery services, ordering processes, and emotional factors influencing customer satisfaction. Additionally, it analyzes the centralized distribution model of Ocado, its revenue, customer base, and order fulfillment metrics. Through a comparison with Tesco.com, the lecture highlights the pros and cons of different operational approaches, prompting a critical evaluation of these models.