Enhancing in-store picking for e-grocery: an empirical-based modelSeghezzi, Arianna; Siragusa, Chiara; Mangiaracina, Riccardo
2022 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-01-2021-0018
This paper identifies, configures and analyses a solution aimed at increasing the efficiency of in-store picking for e-grocers and combining the traditional store-based option with a warehouse-based logic (creating a back area dedicated to the most required online items).Design/methodology/approachThe adopted methodology is a multi-method approach combining analytical modelling and interviews with practitioners. Interviews were performed with managers, whose collaboration allowed the development and application of an empirically-grounded model, aimed to estimate the performances of the proposed picking solution in its different configurations. Various scenarios are modelled and different policies are evaluated.FindingsThe proposed solution entails time benefits compared to traditional store-based picking for three main reasons: lower travel time (due to the absence of offline customers), lower retrieval time (tied to the more efficient product allocation in the back) and lower time to manage stock-outs (since there are no missing items in the back). Considering the batching policies, order picking is always outperformed by batch and zone picking, as they allow for the reduction of the average travelled distance per order. Conversely, zone picking is more efficient than batch picking when demand volumes are high.Originality/valueFrom an academic perspective, this work proposes a picking solution that combines the store-based and warehouse-based logics (traditionally seen as opposite/alternative choices). From a managerial perspective, it may support the definition of the picking process for traditional grocers that are offering – or aim to offer – e-commerce services to their customers.
The impact of optimal parcel locker locations on costs and the environmentPeppel, Marcel; Spinler, Stefan
2022 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-07-2021-0287
Last-mile delivery is associated with a negative environmental impact and high costs. The purpose of this paper is to develop an approach to designing stationary parcel locker (SPL) networks while minimizing both CO2 equivalent (CO2e) emissions and costs during delivery and pick-up.Design/methodology/approachThis study uses a multinomial logit model to evaluate recipients' willingness to use SPLs based on their availability at home and travel distance. To determine optimal SPL locations, this study formulates a mixed-integer linear programming model.FindingsThe empirical study of different regional clusters reveals that optimal SPL locations can generate cost savings of up to 11.0%. SPLs have a positive impact on total CO2e emission savings in urban areas (i.e. up to 2.5%), but give rise to additional emissions (i.e. 4.6%) in less populated areas due to longer travel distances during the pick-up process.Originality/valueThis paper optimizes SPL locations and the ecological effect of SPLs by minimizing emissions and costs simultaneously. Furthermore, it extends existing discrete choice models by also including recipients' availability at home, increasing the accuracy of recipients' preferences. So far, the effect of SPLs has been studied for metropolitan areas only. A global logistics service provider shared a real dataset which allows us to study seven different regional clusters ranging from rural areas to large cities. Thus, this study contributes to the field of sustainable urban logistics.
Product variety in retail: the moderating influence of demand variabilitySweeney, Kevin; Riley, Jason; Duan, Yongrui
2022 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-12-2020-0407
The paper aims to empirically investigate how demand variability impacts product category inventory levels and stockout rates of retail firms. Additionally, the moderating effect of product variety on these performance metrics is explored.Design/methodology/approachUsing data from 78 individual retail stores of a single firm located in China, the authors develop a three stage least squares regression model to examine the simultaneous impact of product variety and demand variability on product inventory levels and stockout rates.FindingsThe results indicate that product variety and demand variability both negatively influence product category inventory levels and stockout rates. However, contrary to results for manufacturing or distributor environments, product variety dampens the negative relationship between demand variability and inventory.Practical implicationsFor products or categories with a high amount of demand variability, retailers can leverage more product variety to help improve their inventory performance. This is likely due to product substitution behaviors.Originality/valueThe authors show that previously examined relationships between product variety, demand variability, and firm performance are different in the retail environment than in the manufacturing or distributor context.
Understanding the implications of pandemic outbreaks on supply chains: an exploratory study of the effects caused by the COVID-19 across four South Asian countries and steps taken by firms to address the disruptionsButt, Atif Saleem
2022 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-08-2020-0281
The purpose of this paper is to explore the disruptions caused to supply chains by COIVD-19 as well as steps/countermeasures taken by firms to address such disruptions.Design/methodology/approachThis study employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centers and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).FindingsResults unveil that manufacturing firms are facing limited production and delays in procuring goods and services, while distribution centres are facing inventory shortages. Furthermore, supplying firms are facing increased lead times amid the COVID-19 outbreak. In addition, each affected entity has employed specific strategies to address these disruptions. For instance, manufacturing firms are refining their production schedules based on the inventory, getting better visibility to their suppliers’ performance and developing new inbound routes to meet the production challenges. They are also assessing the tier-1 supplier’s risk and activating the relationship with secondary suppliers to address the procurement issues. Second, distributors are modifying inventory policies to meet the inventory shortage. Finally, supplying firms are developing alternative outbound logistics to meet the growing demand.Research limitations/implicationsThere are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.Originality/valueOur study contributes to the supply chain literature by exploring the disruptions caused by COVID-19 to the supply chain operations. It also contributes to theory and practice by articulating the strategies adopted by firms to address such disruptions. Firms can use the steps highlighted in this study to mitigate the impact of COVID-19 on the supply chain disruptions.