Peapod Delivers ‘Express Line’ Service through Superior Routing
Company Size
1,000+
Region
- America
Country
- United States
Product
- Roadnet
- Roadnet Transportation Suite Web Services
- Territory Planner
Tech Stack
- Web Services
- GPS
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Customer Satisfaction
- Productivity Improvements
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
About The 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.
The 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.
The 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.
Operational Impact
Quantitative Benefit
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