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FreshDirect Case Solution

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FreshDirect’s business level strategy was to operate as an online grocery store and delivery service and to provide high-quality products at low-prices. FreshDirect had designed a state-of-the-art production center in order to maintain adequate quality standards of its products. Each food item was kept at optimum temperatures in order to ensure freshness, and it had extremely high standards for hygiene and safety.

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The facility’s operations were run through a robust SAP manufacturing software, which controlled all thermometers, conveyer belts and other settings. 
FreshDirect sourced all of its products directly through producers and farmers, and the middlemen was eliminated. This helped in saving additional costs. Furthermore, the brand also sold heat-and-serve meals to cater to its busy clientele. 

The facility was placed in a strategic location, near its Manhattan client base in order to quickly deliver a large volume of products at low-costs. Deliveries were managed in-house through a delivery truck rather than out-sourcing it, in order to ensure timely deliveries. It had also partnered with Foodily, and launched a service called Popcart.

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