Johannes Wollenburg, Alexander Hübner, Heinrich Kuhn and Alexander Trautrims
The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the…
Abstract
Purpose
The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the general understanding of such bricks-and-clicks logistics systems for grocery is still limited, the purpose of this paper is to analyze the internal logistics networks used to serve customers across channels by means of an exploratory study with retailers from different contexts.
Design/methodology/approach
A total of 12 case companies from six European countries participated in this exploratory study. Face-to-face interviews with managers were the primary source for data collection. The heterogeneity of the sample enabled the authors to build a typology of logistics networks in grocery retailing on multiple channels and to understand the advantages of different warehousing, picking, internal transportation and last-mile delivery systems.
Findings
Bricks-and-mortar grocery retailers are leveraging their existing logistics structures to fulfill online orders. Logistics networks are mostly determined by the question of where to split case packs into customer units. In non-food logistics, channel integration is mostly seen as beneficial, but in grocery retailing, this depends heavily on product, market and retailer specifics. The data from the heterogeneous sample reveal six distinct types for cross-channel order fulfillment.
Practical implications
The qualitative analysis of different design options can serve as a decision support for retailers developing logistics networks to serve customers across channels.
Originality/value
The paper shows the internal and external factors that drive the decision-making for omni-channel (OC) logistics networks for previously store-based grocery retailers. Thereby, it makes a step toward building a contingency and configuration theory of retail networks design. It discusses in particular the differences between grocery and non-food OC retailing, last-mile delivery systems and market characteristics in the decision-making of retail networks design.
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Because increasing product variety in retail conflicts with limited shelf space, managing assortment and shelf quantities is a core decision in this sector. A retailer needs to…
Abstract
Purpose
Because increasing product variety in retail conflicts with limited shelf space, managing assortment and shelf quantities is a core decision in this sector. A retailer needs to define the assortment size and then assign shelf space to meet consumer demand. However, the current literature lacks not only information on the comprehensive structure of the decision problem, but also a decision support system that can be directly applied to practice in a straightforward manner. The paper aims to discuss these issues.
Design/methodology/approach
The findings were developed and evaluated by means of explorative interviews with grocery retail experts. An optimization model is proposed to solve the problem of assortment planning with limited shelf space for data sets of a size relevant in real retail practice.
Findings
The author identifies the underlying planning problems based on a qualitative survey of retailers and relates the problems to each other. This paper develops a pragmatic approach to the capacitated assortment problem with stochastic demand and substitution effects. The numerical examples reveal that substitution demand has a significant impact on total profit and solution structure.
Practical implications
The author shows that the model and solution approach are scalable to problem sizes relevant in practice. Furthermore, the planning architecture structures the related planning questions and forms a foundation for further research on decision support systems.
Originality/value
The planning framework structures the associated decision problems in assortment planning. An efficient solution approach for assortment planning is proposed.
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Tobias Winkler, Manuel Ostermeier and Alexander Hübner
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or…
Abstract
Purpose
Regarding the retail internal supply chain (SC), both retailers and research are currently focused on reactive food waste reduction options in stores (e.g. discounting or donations). These options reduce waste after a surplus has emerged but do not prevent an emerging surplus in the first place. This paper aims to reveal how retailers can proactively prevent waste along the SC and why the options identified are impactful but, at the same time, often complex to implement.
Design/methodology/approach
The authors follow an exploratory approach for a nascent topic to obtain insights into measures taken in practice. Interviews with experts from retail build the main data source.
Findings
The authors identify and analyze 21 inbound, warehousing, distribution and store-related options applied in grocery retail. Despite the expected high overall impact on waste, prevention measures in inbound logistics and distribution and warehousing have not been intensively applied to date.
Practical implications
The authors provide a structured approach to mitigate waste within retailers' operations and categorize the types of barriers that need to be addressed.
Originality/value
This research provides a better understanding of prevention options in retail operations, which has not yet been empirically explored. Furthermore, this study conceptualizes prevention and reduction options and reveals implementation patterns.
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Alexander Hübner, Johannes Wollenburg and Andreas Holzapfel
Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this paper is to…
Abstract
Purpose
Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this paper is to investigate how retailers develop from separate multi-channel (MC) to integrated omni-channel (OC) fulfillment. OC retailing has an integrated perspective, with seamless interactions between online and bricks-and-mortar channels.
Design/methodology/approach
More than 60 internationally active retailers and experts from Germany participated in an exploratory survey. With a response rate of 40 percent the authors achieved the goal to adequately depict the German MC and OC retail market. It is currently the largest empirical study of MC and OC fulfillment.
Findings
It is the first study to comprehensively analyze the logistical development options open to retailers for integrated fulfillment. The authors discuss the conceptual development options and formulate propositions for an advanced OC fulfillment approach. OC retailers aim to pool their organizational units for fulfillment via different channels. Retailers with multiple channels develop their warehouse systems toward channel-integrated inventory enabling flexible and demand-driven inventory allocation. Retailers with channel-integrated inventory also organize their picking procedures in one common zone. The higher the outlet density, the more it becomes beneficial for retailers to introduce pick-up services.
Research limitations/implications
The research is based on insights from retailers and experts from companies based in Germany.
Practical implications
The findings provide an insight into designing OC fulfillment and distribution structures. The concepts themselves, archetypes, challenges and development paths are analyzed. Identified logistics levers can be adjusted to pinpoint the steps required to advance integration.
Originality/value
The authors contribute by deriving propositions and a framework for transitioning from basic MC to integrated, extended OC logistics. Because this research area is still comparatively young, the authors take a more comprehensive, exploratory view of OC fulfillment.
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Alexander H. Hübner, Heinrich Kuhn and Michael G. Sternbeck
The purpose of this paper is to develop a holistic operations planning framework for grocery retailing. The authors aim to identify, describe and structure coherent demand and…
Abstract
Purpose
The purpose of this paper is to develop a holistic operations planning framework for grocery retailing. The authors aim to identify, describe and structure coherent demand and supply chain (SC) planning problems in a comprehensive architecture.
Design/methodology/approach
The authors reviewed key literature on retail SC management and sales planning. This built a foundation for the development of an integrated operations planning framework. The findings were evaluated through discussions with retailers and communications with retail planners, including personal interviews with 28 leading European grocery retailers and with people in related positions from the consumer goods industry and consultancies.
Findings
The core of this paper is the development of a coherent demand and SC planning matrix. It demonstrates planning interdependencies and defines a framework for retail operations. The grocery planning framework integrates retail specifics, as well as hierarchical and sequential aspects of decision making. That is why this planning architecture also forms the foundation for research and development of advanced decision support systems.
Practical implications
Planning tasks are identified in interrelated planning modules permitting coordinated and decentralised decision making, which is necessary for operational and complexity reasons. The planning framework assists retail planners in understanding their decision problem from a comprehensive perspective. Better coordination of different modules and further development of retail‐tailored analytical models will improve planning quality.
Originality/value
This is the first paper that structures retail demand and SC planning questions coherently in one framework, matching demand and supply from a long‐ to short‐term perspective and from supplier to customer.
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Alexander Hermann Hübner, Heinrich Kuhn and Johannes Wollenburg
For traditional grocery retailers, the growing importance of online sales means creating new logistics models for omni-channel (OC) management. Due to these transformational…
Abstract
Purpose
For traditional grocery retailers, the growing importance of online sales means creating new logistics models for omni-channel (OC) management. Due to these transformational changes, retail research and practice are lacking a comprehensive view on integrated fulfilment and distribution concepts for home and store deliveries as they have evolved recently. This paper develops a planning framework for last mile order fulfilment in OC grocery retailing and discusses the advantages and disadvantages of different design concepts.
Design/methodology/approach
The findings were developed and evaluated by means of explorative interviews with grocery retail and logistics experts. Additionally, key literature on last mile order fulfilment and retail supply chain management was reviewed to supplement the integrated OC grocery operations planning framework.
Findings
OC logistics planning can be structured into back-end fulfilment (e.g. warehouse and in-store picking) and last mile distribution concepts (e.g. attended and unattended home delivery). The design choices depend on country specifics (e.g. population density), retailer specifics (e.g. capability for cross-channel process integration) and customer behaviour (e.g. possibility of unattended home delivery). The application areas and their contextual factors are discussed for each design parameter.
Practical implications
The last mile fulfilment options identified can be applied to pinpoint the necessary steps for further optimizing OC integration. Grocers can gain insights into current fulfilment concepts used in different contexts. This architecture also forms the foundation for further research on decision support systems.
Originality/value
The coherent planning framework summarizes the general design options for last mile order fulfilment arising from new requirements for OC fulfilment.
Divya Goswami and Balraj Verma
Using VOSviewer software, this research delves into the various implications of ethical artificial intelligence (AI) within the retail industry. We explored the latest research…
Abstract
Using VOSviewer software, this research delves into the various implications of ethical artificial intelligence (AI) within the retail industry. We explored the latest research trends using bibliometric analysis unveiling the journals, organisations, sources, articles, and documents that topped the chart. To shed light on the critical areas, we leveraged a citation analysis approach to explore the numerous trending research areas that were associated with fostering trust and transparency in AI-based retail applications. The research recognised the most influential areas by investigating the highly cited works. This research insight works as a guiding roadmap to navigate the complexities related to the ethical use of AI and direct towards fostering trust.
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Professor Xavier Brusset, Professor Christoph Teller and Professor Herbert Kotzab
Erdem Galipoglu, Herbert Kotzab, Christoph Teller, Isik Özge Yumurtaci Hüseyinoglu and Jens Pöppelbuß
The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain…
Abstract
Purpose
The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain management; and to reveal the intellectual foundation of omni-channel retailing research.
Design/methodology/approach
The paper applies a multi-method approach by conducting a content-analysis-based literature review of 70 academic papers. Based on the reference lists of these papers, the authors performed a citation and co-citation analysis based on the 34 most frequently cited papers. This analysis included multidimensional scaling, a cluster analysis and factor analysis.
Findings
The study reveals the limited consideration of logistics and supply chain management literature in the foundation of the omni-channel retailing research. Further, the authors see a dominance of empirical research as compared to conceptual and analytical research. Overall, there is a focus on the Western retail context in this research field. The intellectual foundation is embedded in the marketing discipline and can be characterised as lacking a robust theoretical foundation.
Originality/value
The contribution of this research is identifying, evaluating and structuring the literature of omni-channel research and providing an overview of the state of the art of this research area considering its interdisciplinary nature. This paper thus supports researchers looking to holistically comprehend, prioritise and use the underpinning literature central to the phenomena of omni-channel retailing. For practitioners and academics alike, the findings can trigger and support future research and an evolving understanding of omni-channel retailing.
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Giada Salvietti, Cristina Ziliani, Christoph Teller, Marco Ieva and Silvia Ranfagni
The study aims to propose a comprehensive overview of the Omnichannel phenomenon by identifying its theoretical foundations as well as future research directions.
Abstract
Purpose
The study aims to propose a comprehensive overview of the Omnichannel phenomenon by identifying its theoretical foundations as well as future research directions.
Design/methodology/approach
In order to systematize Omnichannel-centered contributions and identify future research directions for post-Covid-19, this study adopted a mixed-method study, combining a systematic literature review, a bibliometric co-citation analysis and a panel discussion by field experts.
Findings
In Study 1, the authors traced extant literature on Omnichannel back to its theoretical foundations, which led to the identification of four research areas in which the concept of Omnichannel is rooted. Contributions pertaining to the aforesaid research areas were discussed and submitted to a panel of experts (Study 2) after the lockdown periods. The experts gave various insights into both the past and future of Omnichannel research. Finally, a framework synthesizing theoretical foundations of Omnichannel, literature gaps and opportunities for future research is provided.
Originality/value
To our knowledge, this is the first attempt to combine mixed methods study in Omnichannel research and to involve a panel of experts in order to discuss the findings of a literature review and evaluate future research directions. This choice allowed us to investigate both incumbent academic and managerial challenges raised by Omnichannel and to provide guidance for the post-pandemic recovery.