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notes/other/Order Bundling White Paper.md

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+This White Paper describes the idea of Order Bundling. It's part of a brainstorming effort, not a plan. It's purpose is to stir ideas that could lead to a more specific plan of action.
+
+## TLDR
+
+Order bundling consists on performing more than one delivery in a same drive. It is an opportunity to improve operational efficiency by reducing the driving time needed for the same number of orders. The improvement in efficiency mainly derives from skipping trips back to the picking location to pick the goods for the next delivery. Bundling is attractive under conditions X,Y,Z. Bundling is hard to execute under conditions X,Y,Z. 
+
+## What is Order Bundling
+
+Order bundling is the idea of having a shopper or driver deliver two orders in a single ride. This means that, instead of:
+- Picking location -> first customer location -> picking location -> second customer location -> picking location (for next order)
+We would do:
+- Picking location -> first customer location -> second customer location -> picking location (for next order)
+
+The goal of order bundling is to spend less time driving to serve the same amount of orders.
+
+### Anatomy of an order
+
+- Picking
+	- Picking time
+	- Checkout time
+	- Loading time
+- Driving
+	- Drive to customer location
+	- Delivery
+	- Drive back to picking location
+
+
+
+
+### Factors that favour bundling
+- Orders that are close in space and time.
+	- High volume of orders (higher chances of multiple orders in same or adjacent timeslots)
+	- Operational areas that are small in physical area (higher chances of customers being close to each other)
+- Picker + driver operating model.
+- Great temperature-control (lower chances of frozen/chill products going bad)
+
+### Factors that discourage bundling
+- Orders that are far in space and time.
+	- Low volume of orders (lower chances of multiple orders in same or adjacent timeslots)
+	- Operational areas that are large in physical area (lower chances of customers being close to each other)
+- Single shopper operating model.
+- Poor temperature-control (higher chances of frozen/chill products going bad)
+
+
+
+
+
+
+
+## How can Order Bundling be executed
+
+## Benefits and estimated opportunity size
+
+The main financial cost for Lolamarket's operation is the shopper's compensation. 
+
+Making shopper's significantly more productive allows at the same time cost saving for Lolamarket and an increase in hourly compensation for the shopper. An increase in efficiency basically makes the pie of each order bigger, which is independent of how this pie is split between shopper and Lolamarket. We could get greedy and hoard all the efficiency savings for ourselves. We could be selfless and let the shoppers take home all the efficiency gains. Or we could be moderate and strike a balance somewhere in between.
+
+## Estimated opportunity size
+
+- Pick a time frame
+- Pick a geographical area
+- Define several tiers of close-ness (<10driving-min, <20driving-min, <30driving-min)
+- Report on what percentage of orders where candidates for bundling
+- Make an assumption on the saved human time 
+
+
+## Roadmap
+
+1. Backwards looking estimation of opportunity
+2. Simple 3 day ahead bundling suggestion service
+3. Integration in shopper app and order backoffice
+4. Fine tuning