Fresh Direct - Operations

Operations

FreshDirect uses SAP AG software to process thousands of orders placed on its website every night. Orders are dispatched to the kitchen, bakery, deli as well as fresh storage rooms, produce ripening rooms and production areas within the company's refrigerated facility. All order components are custom-cut, packaged, weighed and priced. In the case of dry goods or frozen foods, items are picked from storage before being placed inside bins that travel along conveyors to the sorting area. There, products in a customer's order are scanned and gathered in corrugated fiberboard boxes. The boxes are labeled, recorded and loaded into refrigerated delivery trucks.

FreshDirect is based in a 300,000-square-foot (28,000 m2) building in Long Island City and is one of the largest employers in the area. Though the website and plant processes were in development for several years before its public launch, the company made its first deliveries to Roosevelt Island on July 11, 2002. FreshDirect has since expanded service to Manhattan, Brooklyn, Queens, the The Bronx and parts of Nassau County, Westchester County and New Jersey. The company now has almost 2,000 employees.

In 2011 UK retailer Morrisons bought a 10% stake in the company in order to learn about online shopping in order to launch its long awaited online shopping service in the UK.

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