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Canadian Net Grocer Improves On-time Delivery via Outsourced Logistics

MISSISSAUGA, Ont. -- Online Canadian supermarket Grocery Gateway, operated by Longo Brothers Fruit Market, Inc., has improved its on-time delivery rate by 14 percent with a new Web-based logistics system.

The retailer said that it's using Chicago-based Cube Route’s on-demand logistics management solution to optimize its routes for maximum efficiency and gain visibility into its delivery operations. The system consists of a combination of routing, tracking, planning, and dispatching functionality that allows Grocery Gateway to guarantee on-time deliveries to the door within a specific 90-minute window.

"Our tight delivery windows and the large, densely populated delivery area we serve made our logistics planning, routing, and tracking an incredible challenge," said Kurt Mann, manager of operations for Grocery Gateway. "With Cube Route, however, we can track our drivers throughout the day and adjust their routes on the fly to ensure we meet our narrow delivery time windows."

Grocery Gateway’s delivery fleets make close to 500 stops per day, serving 15,000 active customers. To ensure that its orders are delivered on time and that it can quickly respond to last-minute customer requests or cancellations as well as unpredictable delays, the grocer needed optimized routes and real-time visibility in its delivery operations.

Using GPS-enabled mobile phones, Cube Route initiates visibility the moment a Grocery Gateway driver departs for the first stop, and automatically updates the planned route and all of its associated metrics. Drivers simply push two buttons on the phone on completion of deliveries to report back to head office. GPS pings are also sent from the phone, automatically updating the location, speed, and direction on maps that can be accessed anywhere through a standard web browser.

Founded in 1998 and acquired by Longo Brothers Fruit Market, Inc. in 2004, Grocery Gateway offers more than 7,500 grocery items on its Web site, including fresh meats, produce, and organic products. The retailer has more than 100,000 registered customers throughout the greater Toronto area.
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