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Multiple model approach for the EGS research
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Electronic Grocery Shopping (EGS) has emerged as a challenger to traditional grocery business during the last few years. However, it has not yet achieved remarkable marketing share. One reason is inefficient supply chain of the e-grocery business. Especially the home delivery adds extra costs. This paper introduces a new supply chain configuration...
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Citations
... E-commerce is therefore also defined as distance selling. According to Yrjölä et al. (2000), online shopping can be described as electronic order processing by households, combined with the ensured delivery of the packaged order. The type of order and whether it is submitted online, by telephone or in any other format, is not actually relevant, but rather how and where the goods are assembled and delivered to the customer. ...
... In relation to deliveries, there are also recent works such as that of Wagner et al. (2021), which examine the impact of subscriptions on deliveries. Changes in supply chains are considered by Yrjölä et al. (2000), Fernie and Sparks (2018), and Boyer and Hult (2005) among others, in whose work e-groceries provision is mostly viewed as an extension of the supply chain whereas the upstream supply chain is often left out. Wollenburg et al. (2018) conducted a comprehensive study on changes of supply chains for online grocery retail and give first hints on structural differences between countries and companies. ...
With an ever-growing variety of sales formats, food retailers are striving to cover all customers’ needs. This includes setting up online sales, which involve adjustments in companies’ logistics processes. This paper reveals which logistics processes are affected and what effects these changes have on the transport and logistics of groceries.
The paper examines the following questions: 1) What are the characteristics of the online grocery market? 2) Which challenges do retailers face in the online market? 3) And what strategies, in particular which logistics and distribution strategies, do they use to meet these challenges and with what success?
The research is based on expert interviews combined with in-depth desk research. The paper focuses on the German and French online grocery market, where the forms of supply differ greatly.
Applying a systematic research methodology, the paper first describes what types of online grocery services are currently available, mainly distinguishing between home delivery and collection options. The different patterns of storage and picking are compared in terms of their strengths and weaknesses and by assigning them to a modular scheme. The next step examines logistics processes and online sales-related distribution strategies, whereby most challenges are shown to be operational and optimisation is a challenge due to low margins. Consequently, existing location structures are often used, but new ones are also created. A typology of online logistics strategies and distribution organisations is derived with regard to the impact of online sales strategies on the logistics and transport structure. The paper concludes with a discussion of these impacts and an overview of future opportunities.
... In the Intertrade project the initial problem definition and planning was carried out mainly by Hannu Yrjölä, starting in 1997 and resulting in the commencement of the actual Ecomlog research programme in April 1999. Yrjölä & Tanskanen (1999) and Yrjölä et al. (2000) were published soon after starting the Intertrade project, providing guidelines for the research work. ...
Recently, last mile logistics has been identified as one of the most important factors in developing consumer direct business concepts. Research and experience have revealed that the goods reception mode is one of the key factors when developing cost-efficient home delivery operations. This dissertation identifies, models, and analyses existing and emerging e-grocery home delivery operation models. The cost levels of various home delivery models offering attended and unattended reception are compared, and their feasibility evaluated using real point-of-sale data and a vehicle routing tool. The cost level of home delivery service is also compared to the current costs of a household customer visiting a supermarket using his/her own car. In addition, the environmental effects of the different home delivery models are analysed. According to the results, home delivery transportation costs using the shared reception box concept are 55-66 % lower than those of the current standard home delivery model with attended reception and 2-hour delivery time windows. This cost reduction alone justifies the two-to-five-year payback period of the investment
