News

Online grocer utilizes BI to deliver customer service promise

May 4, 2011

According to STORES.com, FreshDirect, a New York-based online grocery delivery company, uses business intelligence (BI) strategies and technologies to help it carry out its satisfaction guarantees and customer service promises.

“First and foremost, at FreshDirect we are committed to delivering the highest quality, freshest foods in New York City and the tri-state [New York, New Jersey, Connecticut] area,” said Brandon Arbiter, business intelligence manager for Fresh Direct LLC. “That’s actually a guarantee we have for our customers, and we back that up with the guarantee that if you’re not totally satisfied, our customer service team will make it right.”

FreshDirect buys directly from sources such as local farms to distribute fresh foods. The products typically reach customers about a week earlier then they would if sent through chain grocery store channels. The company is adamant about practicing excellent customer service.

“This guarantee has actually turned into a very rich source of data,” Arbiter said. “Our customers tell us exactly how we’re doing and help us to find better ways to meet their expectations. We take that feedback and organize it into various reports that are customized for every department and every level of management.”

FreshDirect began using SAP AG’s BusinessObjects portfolio in 2010 for operations and insights into performance metrics for product quality, service and delivery. After collecting the data, executives saw an opportunity to improve product quality and reduce customer credits for packaging or delivery errors.

Since implementing the platform, late deliveries have been reduced by more than 80 percent.

“We are using BI to monitor the rate of delivery in the field throughout each day,” Arbiter said. “We find exceptions. When an event occurs that puts an order at risk of being delivered late, we actually put it on our dashboard an hour before the order is late. That allows us to send another team out into the field to help out.”