Why has Kurly's next-day fresh food delivery service seen a 15% drop in on-time deliveries over the past month?

Introduction

Kurly's next-day fresh food delivery service has experienced a 15% drop in on-time deliveries over the past month, indicating a significant disruption in their core value proposition. To address this critical issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has there been any significant change in order volume or patterns compared to the same period last year?

Why it matters: Seasonal fluctuations could explain the drop and inform our solution approach. Expected answer: Order volumes are up 20% year-over-year for this period. Impact on approach: If confirmed, we'd need to focus on scaling operations to meet increased demand.

• Considering the specificity of the 15% drop, I'm curious about our measurement accuracy. Have there been any recent changes to how we define or measure "on-time" deliveries?

Why it matters: Ensures we're addressing a real issue and not a measurement anomaly. Expected answer: No changes to the definition or measurement system. Impact on approach: If there were changes, we'd need to audit the measurement system first.

• Given the nature of fresh food delivery, I'm wondering about our supply chain. Have we experienced any significant disruptions or changes in our sourcing or logistics partners recently?

Why it matters: Supply chain issues could directly impact delivery timeliness. Expected answer: No major changes, but there have been some delays from a key supplier. Impact on approach: This would shift our focus to supplier management and potential diversification.

• Thinking about our delivery process, has there been any recent change in our last-mile delivery strategy or partners?

Why it matters: Changes in delivery execution could explain the performance drop. Expected answer: We've onboarded a new delivery partner in two major cities. Impact on approach: If confirmed, we'd need to evaluate the new partner's performance and integration.