Case Studies Peapod Delivers ‘Express Line’ Service through Superior Routing

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	Peapod Delivers ‘Express Line’ Service through Superior Routing

Peapod Delivers ‘Express Line’ Service through Superior Routing

Technology Category	Functional Applications - Fleet Management Systems (FMS) Functional Applications - Remote Monitoring & Control Systems
Applicable Industries	E-Commerce Retail
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Fleet Management Predictive Maintenance Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Peapod, a leading Internet grocer, faced significant logistical challenges in delivering groceries to over 1,500 ZIP codes in the Chicago area and along the U.S. eastern seaboard. The company needed a turnkey solution that integrated planning, routing, scheduling, and delivery confirmation. Initially, Peapod developed its own front-end software for web ordering and delivery time windows, while using another vendor's routing and scheduling tool. However, as the business grew, the company attempted an enterprise-level upgrade of the route-planning piece in 2004, which did not yield satisfactory results. Additionally, Peapod faced the challenge of having a vehicle tracking GPS solution that did not communicate with the transportation planning software in place. The company needed an integrated solution that could scale with its rapidly growing business. Read More
About Customer	Peapod, founded in 1989, is the nation's leading Internet grocer, serving over 280,000 customers in Chicago, New England, and the mid-Atlantic metropolitan regions. It is a wholly owned subsidiary of international food provider Royal Ahold and collaborates with sister supermarket companies such as Stop & Shop and Giant Food. Peapod operates out of two main warehouses in Lake Zurich, Illinois, and Gaithersburg, Maryland, supported by 17 additional 'warerooms' within partnering grocery stores. The company offers over 8,000 products, including groceries, cosmetics, office supplies, and more. Customers can place orders online and choose a two-hour delivery window. Peapod's service has grown at a rate of 25% per year in most areas, making it a popular choice for busy families. Read More
Solution	Omnitracs Roadnet Technologies provided Peapod with an integrated suite of products, including Roadnet and Roadnet Transportation Suite Web Services. This solution allowed Peapod to have the necessary visibility for all its multiple locations. The integration of all modules through Roadnet Transportation Suite Web Services provided routing and proof of delivery for each location. Peapod began its conversion to Roadnet in October 2006, with the rollout expected to be completed in 2007. The new system enabled Peapod to generate routes 10% faster, allowing the company to grow its business without increasing planning personnel. Enhanced customer service was another immediate benefit, as Omnitracs Roadnet Technologies listened to Peapod's needs and provided excellent support from development to tech support. Read More Log in to view content
Contents

Technology Category

Functional Applications - Fleet Management Systems (FMS)

Functional Applications - Remote Monitoring & Control Systems

Applicable Industries

E-Commerce

Retail

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Fleet Management

Predictive Maintenance

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Peapod, a leading Internet grocer, faced significant logistical challenges in delivering groceries to over 1,500 ZIP codes in the Chicago area and along the U.S. eastern seaboard. The company needed a turnkey solution that integrated planning, routing, scheduling, and delivery confirmation. Initially, Peapod developed its own front-end software for web ordering and delivery time windows, while using another vendor's routing and scheduling tool. However, as the business grew, the company attempted an enterprise-level upgrade of the route-planning piece in 2004, which did not yield satisfactory results. Additionally, Peapod faced the challenge of having a vehicle tracking GPS solution that did not communicate with the transportation planning software in place. The company needed an integrated solution that could scale with its rapidly growing business.

About Customer

Peapod, founded in 1989, is the nation's leading Internet grocer, serving over 280,000 customers in Chicago, New England, and the mid-Atlantic metropolitan regions. It is a wholly owned subsidiary of international food provider Royal Ahold and collaborates with sister supermarket companies such as Stop & Shop and Giant Food. Peapod operates out of two main warehouses in Lake Zurich, Illinois, and Gaithersburg, Maryland, supported by 17 additional 'warerooms' within partnering grocery stores. The company offers over 8,000 products, including groceries, cosmetics, office supplies, and more. Customers can place orders online and choose a two-hour delivery window. Peapod's service has grown at a rate of 25% per year in most areas, making it a popular choice for busy families.

Solution

Omnitracs Roadnet Technologies provided Peapod with an integrated suite of products, including Roadnet and Roadnet Transportation Suite Web Services. This solution allowed Peapod to have the necessary visibility for all its multiple locations. The integration of all modules through Roadnet Transportation Suite Web Services provided routing and proof of delivery for each location. Peapod began its conversion to Roadnet in October 2006, with the rollout expected to be completed in 2007. The new system enabled Peapod to generate routes 10% faster, allowing the company to grow its business without increasing planning personnel. Enhanced customer service was another immediate benefit, as Omnitracs Roadnet Technologies listened to Peapod's needs and provided excellent support from development to tech support.

Impact #1	Superior system integration allowed Peapod to streamline its logistics operations.
Impact #2	Scalable expansion capabilities enabled Peapod to grow its business without additional planning personnel.
Impact #3	Enhanced customer service due to Omnitracs Roadnet Technologies' ability to understand and meet Peapod's needs.

Impact #1

Superior system integration allowed Peapod to streamline its logistics operations.

Impact #2

Scalable expansion capabilities enabled Peapod to grow its business without additional planning personnel.

Impact #3

Enhanced customer service due to Omnitracs Roadnet Technologies' ability to understand and meet Peapod's needs.

Benefit #1	10% decrease in the time it takes to generate routes.
Benefit #2	Peapod serves over 280,000 customers across multiple regions.
Benefit #3	Peapod operates 250 trucks for its delivery service.

Benefit #1

10% decrease in the time it takes to generate routes.

Benefit #2

Peapod serves over 280,000 customers across multiple regions.

Benefit #3

Peapod operates 250 trucks for its delivery service.

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Overview

Peapod Delivers ‘Express Line’ Service through Superior Routing

Operational Impact

Quantitative Benefit