Measuring performance against our strategy

We measure the achievement of our strategic objectives through the use of qualitative assessments and the monitoring of quantitative key performance indicators ("KPIs"). In so doing we examine our business carefully, including seeking the opinions of our customers and of the wider public. This allows us to better understand where we have improved our service and proposition, and the areas that we should prioritise for further attention.

The following table sets out the key KPI focus areas, strategic objectives, the relevant measure and its performance over the last two financial years.

KeyAchievements
KPI FocusStrategic ObjectivesMeasured By20122011

Driving Growth

Service
  • To provide market leading levels of service, and ease of use for our customers
  • Better interfaces
  • Growth on mobile
  • Orders delivered in full (low substitutions)
  • Orders delivered on time or early
  • Webshop enhancements
  • New generation apps
  • App check out 28%
  • Website on mobile checkout strongly growing
  • Delivered as ordered 98.3%
  • Deliveries on time or early 92.7%
  • Webshop enhancements
  • Apps on additional platforms
  • App check out 18%
  • Delivered as ordered 98.3%
  • Deliveries on time or early 92.3%
Range
  • To provide a wider range than available in traditional store-based channels, with superior freshness and product life guarantees
  • Ocado own-label growth
  • New ranges
  • Total SKU count over 28,000
  • Non-food over 8,000 SKUs
  • Several speciality lines launched
  • Biggest "free from" range of nearly 800 SKUs
  • Total SKUs 20,000
  • Non-food 3,500 SKUs
  • Guarantee of life on all fresh produce
Price
  • To improve consumer confidence in our pricing to reassure customers they are receiving a good value shopping proposition
  • Ocado own-label growth
  • Promotional strategies
  • Launched Low Price Promise basket match
  • Own-label sales up over 70%
  • Promotional activity similar to industry leaders
  • Tesco Price Match on c.7,000 SKUs
  • Saving Pass launched

Delivering Profitability

Optimising operations
  • To drive efficiency and the lowest operating cost model through investment in technology and automation
  • CFC efficiency measured by units per hour ("UPH")
  • Service delivery efficiency measured by deliveries per van per week ("DPV")
  • Product waste (as % of revenue)
  • CFC 120 UPH
  • DPV 151
  • Product waste 0.7%
  • CFC 111 UPH
  • DPV 145
  • Product waste 0.7%
Building capacity
and leveraging scale
  • To invest carefully in our capacity in CFC1 and to bring CFC2 to the point of opening
  • To fit out and open new non-food fulfilment centre
  • To ensure capacity in our distribution spoke network
  • Leverage of administrative expenses
  • CFC1 capacity measured by orders per week ("OPW")
  • CFC2 progress
  • Non-food fit out progress and opening
  • Spoke development
  • Administrative expenses as a % of revenue
  • Average OPW over 123,000, peaking at over 140,000
  • CFC2 build completed, first orders delivered in February 2013
  • Non-food fulfilment centre opened in January 2013
  • Oxford spoke opened
  • Administrative expenses increased as a % of revenue due to investments in non-food and other resources
  • Average OPW of 110,000, peaking at 131,000
  • CFC2 build commenced
  • Bristol and Wimbledon spokes opened
  • Administrative expenses being supported by single "shop"