ABSTRACT
This study discusses factors affecting the customer value, and the performance of the online-grocery business model. In our case, the biggest trading company in our country developed an online-grocery business model to be taken into use in its supermarkets. The time was not yet right to implement the online-grocery, but useful knowledge was gained as for the internal and external factors to be taken into account when planning online-groceries. The company developed its strategies and the full range of its information systems to get to the retail business front line to enable achieving customer value and profitable business in the future.
ORGANIZATION OF WORK
This project work is primarily designed to give an insight into medical imaging software system used in hospitals.
Chapter one talks about introduction to online grocery business, study of problem and objectives as well as definition of the scope.
Chapter two comprises the literature review. Chapter three gives the detailed information about the existing (old) system, while chapter four and five deals with the design and implantation of new system.
Chapter six documents the project work, while chapter seven summaries, conclusion and suggestions were made.
TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vii
CHAPTER ONE
INTRODUCTION 1
1.1 Background of the study 1
1.2 State of the problem 2
1.3 Purpose of the study 3
1.4 Aims and objectives 3
1.5 Scope of study 5
1.6 Limitations of study 5
1.7 Assumptions 6
1.8 Definition of terms 7
CHAPTER TWO
LITERATURE REVIEW 8
CHAPTER THREE
- Description and
analysis of existing system 15
- Fact finding method used 17
- Organization structure 19
- Objectives of Existing system 21
- Input, Process and Output Analysis 22
- Information Flow Diagrams 26
- Problems of the Existing System 27
- Justification of the New System 28
CHAPTER FOUR
- Design of the
New System 30
- Input Specification and design 30
- Output specification and design 32
- File Design 34
- Procedure chart 36
- System flow chart 38
- System requirements 40
CHAPTER FIVE
- Implementation 42
- Program Design 45
- Program Flowchart 48
- Pseudo code 54
- Source Program: Test Run 59
CHAPTER SIX
Documentation 60
CHAPTER SEVEN
- Recommendation 62
- Conclusion 64
Bibliography 65
1.0 CHAPTER ONE
INTRODUCTION
Groceries are different from many other products, such as music and books that are commonly purchased online. Many grocery products are perishable and therefore time-sensitive in terms of their delivery needs. In addition, groceries are a replacement product, i.e., the same basket of products is more-or-less purchased on a regular basis. Finally, groceries are high-touch items, meaning that consumers like to inspect the quality of items they are purchasing.
As the preceding data indicate, there are some shortcomings apparent with regard to e-grocery business models (Keh and Shieh, 2001). One major shortcoming of these models is that they limit on sensory perceptions of the product, i.e., consumers cannot see, touch and smell the products shown on the monitor. Also, for consumers to be convinced that delivery of products to their front door is convenient, the delivery time must be relatively short. Technology must also improve so that graphic displays do not require a long time to download. Additionally, online security is always a concern and is the main reason why consumers are reluctant to buy online. Finally, the issue of consumer privacy and how online stores will handle the large database of consumer preferences must be addressed.
Concerns still abound with regard to the pure-play e-grocery business model (Partch, 2001). The distribution centers required for this concept require a large amount of capital. In the wake of failing dot-coms, the availability of financial backers for such ventures has declined. Even with distribution centers in place, pure plays often must often be operating at full capacity to make them pay for themselves. With a startup operation and limited brand identification, it is difficult to achieve this efficiency, particularly in the short term. These concerns are warranted in light of the failure of many pureplay e-grocers, notably Webvan, Streamline, Homegrocer and Shoplink (Tanskanen, Yrjola and Holmstrom, 2002).
Peapod USA is one of the few surviving companies that started off as a pure play. However, this survival is largely attributable to its acquisition by the traditional grocery retailer Royal Ahold. This gave Peapod access to Ahold’s cost- effective supply chain. It also formed a hybrid order fulfillment comprised of stores and distribution centers. This was more efficient and scalable.
Traditional grocery retailers that have ventured online have been more successful than pure plays. For example, Teco decided to grow one step at a time. They spent five years fine-tuning and developing their online order and delivery system. Currently, Tesco provides e-grocery service through one-third of their 690 British outlets. This allows Tesco to be within a half-hour of 91 percent of the British population.
The comparative success of bricks-and-mortar stores that expand into an Internet environment is attributable to a the following factors:
- Existing stores have brand recognition and an established reputation;
- There are economies of scale, especially for the larger chains; and,
- Traditional stores are further along on the experience curve in this industry.
On a smaller scale, MyWebGrocer provides Internet services for 160 supermarkets in twenty states. This is a turnkey method to establish online stores. MyWebGrocer maintains the database used by the store and includes private label items as well as perishables. MyWebGrocer also maintains weekly prices and item additions or deletions. By offering this valuable service to the smaller grocery stores, MyWebGrocer believes they have a valuable business model. To make this business model successful, Mike Spindler, President of MyWebGrocer, makes the following suggestions:
- Leverage your reputation and current marketing by including existing store name in the Web address;
- Prominently feature the online site in all advertising and in-store activities;
- Show pictures of all products being sold;
- Have a sign-in sheet right in the store so customers can leave their e-mail address;
- Contact the local media when launching a site;
- Contact the media again with “human interest” story ideas, providing the list of customers who are happy with the service;
- Develop partnerships with local corporations to offer online shopping from the office;
- Team with local Internet Service Providers (ISPs); and,
- Contact local daycare centers to target busy parents [5].
Irrespective of the scale of operations, e-grocers will only survive if the provide real value to consumers. With the small profit margins, competition on the basis of price should not be used to obtain a competitive advantage since this would hurt the industry as a whole. Some examples sources of value for consumers include:
Emulating superior service through a user-friendly Web site;
Being responsive to customers delivery time requirements;
Enhancing the quality of products delivered with refrigerated delivery systems; and,
Using innovative ideas to meet the needs of different customer groups, for example, special services for the aged and disabled.
STATEMENT OF PROBLEM
Owing to:
The perishable nature of the grocery goods.
Competition involved in the grocery market.
Inadequate distribution of grocery goods.
Lack of adequate information about grocery goods.
The need arise for the development of online grocery business software that will help to solve these problems.