E-commerce dynamics are making the design of distribution systems more and more challenging, especially in grocery retailing. The use of stores as picking location for e-fulfilment brings the opportunity of both offering fast deliveries and exploiting synergies with the traditional channel. However, efficiently designing a store-based distribution system turns out to be a critical task. This paper addresses the tactical problem of selecting stores to be used as picking location and defining the related delivery zones. We developed a model for the delivery cost estimation using the continuous approximation approach, as well as a heuristic procedure to compare multiple store-based distribution systems. The model was applied to a real case. Results showed that properly selecting the picking locations in a store-based distribution system is recommended because cost saving can be up to 40%. The most cost-effective number of picking locations decreases with an increase in the online demand.

E-fulfilment in grocery retailing: Design insights for a store-based distribution system

Rasini M.;Tappia E.;Melacini M.
2021-01-01

Abstract

E-commerce dynamics are making the design of distribution systems more and more challenging, especially in grocery retailing. The use of stores as picking location for e-fulfilment brings the opportunity of both offering fast deliveries and exploiting synergies with the traditional channel. However, efficiently designing a store-based distribution system turns out to be a critical task. This paper addresses the tactical problem of selecting stores to be used as picking location and defining the related delivery zones. We developed a model for the delivery cost estimation using the continuous approximation approach, as well as a heuristic procedure to compare multiple store-based distribution systems. The model was applied to a real case. Results showed that properly selecting the picking locations in a store-based distribution system is recommended because cost saving can be up to 40%. The most cost-effective number of picking locations decreases with an increase in the online demand.
2021
Continuous approximation approach, Distribution system, E-fulfilment, Electronic fulfilment, Grocery retailing
File in questo prodotto:
File Dimensione Formato  
E-fulfilment in grocery retailing design insights for a store-based distribution system_IRIS.pdf

Open Access dal 31/07/2022

: Post-Print (DRAFT o Author’s Accepted Manuscript-AAM)
Dimensione 383.9 kB
Formato Adobe PDF
383.9 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/1207132
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? ND
social impact