International Journal of Physical Distribution & Logistics Management

Vesa Kämäräinen; Juha Saranen; Jan Holmström

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110399414

Home delivery of groceries is not yet a very popular service among consumers. One reason for the slow progress has been the time-consuming and expensive ordering process. In recent years, Internet-based solutions have solved most of the problems related to the order transaction process - making ordering simpler, cheaper and faster. However, there are still a lot of unsolved problems in the e-grocery business. One of the biggest obstacles is inefficient home delivery. This paper examines how different solutions for goods receipt affect home-delivery efficiency. Different alternatives for receiving the goods are presented and the service levels of these concepts are described from the consumer's point of view. In addition, the costs for the e-grocer are studied. The efficiency of using a reception box is demonstrated by simulating two alternative receiving concepts.

Mikko Punakivi; Hannu Yrjölä; Jan Holmström

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030110399423

One of the biggest challenges in B2C e‐commerce is the so‐called “last mile”, the home delivery service for the customer. Particularly in electronic grocery shopping it is difficult to combine profitability and high service level. The authors’ simulations suggest that the unattended reception of goods reduce home delivery costs considerably, by up to 60 percent. Unattended delivery has not been widely used because it requires investments and commitment from the customer. The two main approaches to unattended delivery are the reception box concept and the delivery box concept. The reception box is a refrigerated, customer‐specific reception box installed at the customer’s garage or home yard. The delivery box is an insulated secured box equipped with a docking mechanism. The reception box concept results in more effective home delivery transportation and the delivery box concept in smaller investment to achieve unattended receipt. This article assesses these two different concepts. The cost savings in transportation are analysed using simulation. The operational cost savings are compared to the respective investments required to calculate the payback period. Both concepts proved to be feasible but which one works better is not only a question of financial justification. The possible additional value to customers and overall suitability to the market must also be considered.

Herbert Kotzab; Maria Madlberger

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/EUM0000000005590

The management of electronic retail channels is not limited to virtual companies only. Also store-based (stationary) retailers are expected to set up electronic distribution channels. This paper discusses the occurrence of such channels from a European perspective. The authors introduce a Web-scan framework to analyze the nature of Web offerings and thelogistical elements of e-tailing. The application of this structure showed that store-based retailers have already invested in Web-based activities, mainly for information and/or communication issues. The set-up of strong electronic channels of distribution is still in an early phase.

Remko I. van Hoek; Ian Chong

2001 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/EUM0000000005591

This epilogue presents the experiences of UPS Worldwide Logistics, a company known to be leading in the development and implementation of a fourth-party logistics business model. This model applies information integration initially in logistics and transport operations. But UPS WWL has achieved full supply chain integration and strategic applications of the information availability to the benefit of its clients. Not only does that represent an application of the e-supply chain, it also leads to the inclusion of supply Web practices in which multiple players team up flexibly to align to the end consumer.