Customer Response Centers (CRC) Yields 5-6 Times Higher Profit for Grocery Home Shopping

• Revenue ($) (%) ($) (%)

  • Order value 125,0 100,0 145,0 100,0
  • Gross margin 30,0 24,0 37,7 26,0
  • Service fees 12,5 10,0 14,5 10,0
  • Net revenue 42,5 34,0 52,2 36,0
    

• Variable costs

  • Shelf put-away 3,8 3,0 2,2 1,5
  • Order admin. 2,0 1,5 2,2 1,5
  • Pick/pack/marshal 12,5 10,0 7,3 5,0
  • Delivery 11,3 9,0 5,5 4,0
  • Other costs 8,0 6,5 6,8 4,6
  • Total costs 37,6 30,0 24,0 16,6

• Net contribution $ 5,0 4,0% $ 28,0 19,4%

Broader product and service range

Full inbound pallets/ higher margin items

+$10 in revenue

Wages, autopick, cross dock

FILO loading, route scheduling

Efficient packing material etc

- $13 in costs

+ $ 23

Store based

picking (traditional)

CRC based solution

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