Grocery Gateway

To: Al Sellery, CEO & Claude Germain, COO

From: Dominique Van Voorhis

Subject: Customer Delivery Operations

Issue: We are currently not meeting our target of 4 stops per hour for groceries deliveries.

With our current delivery model we are only completing 2.7 stops per hour. I believe that there are a number of reasons for our low success rate. I don’t think we are giving our customers enough time to prepare for our delivery. Our customers know which day we will be delivering but they don’t know what time we will be showing up until 10 minutes prior to delivery. By not giving our customers enough of a notice our drivers sometimes have to wait on our customers to pay them cash and sometimes the customer is not at their destination. Also, the driver needs to make sure he/she has the correct amount of change and sometimes the customers are not ready with cash in hand. By having our drivers deliver to apartment and condos these deliveries will take much longer than delivering our goods to a house in the suburbs. Currently we only have 1 fulfillment centre and in the previous week our growth has increased in many areas which could leave our customers with a negative impression on our service if we continue to grow and not correct our current problem.

We need to look at the best option for Grocery Gateway in order to maximize customer service and maximize the efficiency of operations.

I considered other options and analyzed which ones made the most sense for the direction of the company:

• Allowing our customers more time to prepare for when we deliver by increasing our current time from 10 minutes to 60 minutes.

• Phasing out cash payments on delivery and implementing online payment only, which will lead to not having our drivers carry cash on them.

• Having drivers only deliver to apartments and condos in our major cities like Toronto, North York, Mississauga.

• Opening a new fulfillment centre in the Newmarket/Aurora area to allow the company to grow and...