University of Twente Student Theses


Optimizing the delivery of merchandise products to restaurants after purchase at

Blaauboer, Eric (2018) Optimizing the delivery of merchandise products to restaurants after purchase at

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2MB is the leading online food delivery marketplace in Continental Europe, connecting consumers and restaurants through its platforms in 10 European countries and Vietnam. To increase brand visibility, started to sell and give away merchandise products with their name and logo to the restaurants. At this moment, offers a wide selection (80) of products that restaurants can choose from. In the last few years, the demand for merchandise products increased. Due to a growing demand, some part of the delivery process of merchandise became unclear. The responsible department, Partner Services, wanted to know what the process flows were in the current situation and how these processes could be improved. Based on this a project was set up to investigate the process flows and possible improvements. To investigate the process flows a study of the current situation in the Netherlands has been carried out. Next to this study of the current situation, Key Performance Indicators (KPIs) have been set up to measure the performance in the current situation. The first step in this set-up was to carry out a literature study to find suitable KPIs. As all logistic steps in the delivery process are carried out by a third logistic party (3LP), it was decided to take two different perspectives in the literature study, (1) a supply chain point of view and (2) a point of view that helped measuring the performance of 3LP. The second step was discussing the results of the literature study with manager and employees of Partner Services, to investigate if they could come up with additional indicators. After investigating the current process flows and setting up KPIs, measurement has taken place to assess the current performance. This has been done by analyzing data from the software pack Store-Vision and by examining Excel sheets set up by the Supply Chain Coordinator of Partner Services. From the measurement it was concluded that performance of Customer Response time and On-time delivery was lower than desired. Where Customer response time should be on 4 working days for order with personalized products, on 2 working days for order without personalized products and on 2 working days for disposable orders, they were respectively on 4.9, 3.9 and 3.5 working days. This caused that On-time performance was on 35% instead of the desired 85%. Further investigating displayed that this low percentage could be traced back to poor performance of the 3LP, DTK. The performance of the order picking process was with 78% not at the desired level of 98% and should be adjusted to achieve the desired overall performance level. By investigating the order process and interviewing employees, issues were exposed, and the underlying causes have been exposed. Most of the issues could be traced back to late delivery and delivery of incorrect products. The report ends with the following recommended solutions: - Improving the performance of the 3LP, DTK, would have the greatest impact on the delivery performance. One of the aspects that should be improved is the picking process. Further research will be needed to investigate how this could be done.To get more control on the performance of DTK, a reassessment of the SLAs is recommended. Switching from agreement on the moment of shipping to agreement of delivery moment, increases the grip on the performance of DTK. - Offer restaurants an option to choose a window for delivery. This decreases the percentage of orders that could not be delivered due to the fact that no one is present to accept the order. This solution will cause an increase in the initial costs, but as this would result in a lower amount of order returned due to the fact that the restaurant owners is not present, this will increase the overall performance. - Use another software pack for tracking of packages. In the current situation, tracking orders is difficult and time consuming. Together with extra notifications in case of disruptions this would improve the delivery performance. At this moment the used software pack, Store-Vision, does not have any notification options, so an investment in another software pack is a logical option. Which pack this should be, should be further investigated. - Introduce a KPI dashboard. Exporting and processing data in the current situation is time consuming and complicated. A dashboard should provide real-time data for the Partner Operational Manager, which would help him in making the right decisions.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
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