Background: The intense competition between grocery retailers to access new revenue streams has seen brick-and-mortar retailers broadening their services to offer consumers the option of ordering their groceries over the Internet. This is implemented through the implementation of different platforms such as their computer or mobile application − known as omnichannel retailing. Omnichannel grocery retailers are facing several challenges with the last mile of their online supply chain, especially with relation to the home delivery of groceries.Objectives: The purpose of the article was to gain an understanding of the nature of last-mile logistical challenges hindering the efficiency of an omnichannel grocery retailer in South Africa.Method: A qualitative methodology was employed; data were collected through an interview with the e-commerce operation manager of a well-known omnichannel grocery retailer in South Africa as well as through two focus group discussions conducted with consumers who regularly purchase items online and those who have never purchased any item online. Data were analysed using thematic analysis.Results: The findings suggested that there are four major last-mile logistical challenges facing the South African omnichannel grocery retailer considered in this study. The challenges are reliable order fulfilment, cold distribution chain requirements, physical distribution and reverse logistics.Conclusion: The findings of this article suggest that many of the last-mile challenges experienced by the omnichannel grocery retailer stem from the inefficient management of information (data) along the supply chain. To alleviate the last-mile logistical challenges identified in this article, emphasis should be placed on implementing a fully integrated information sharing system.
Background: The COVID-19 pandemic has triggered unprecedented growth in digital commerce and has accelerated the digital transformation of many retailers. An unforeseen event, such as the COVID-19 pandemic, is often referred to as a ‘Black Swan’ event – being of low probability to occur but causing substantial disruptions to a supply chain. Lockdown restrictions imposed to curb the spread of coronavirus resulted in significant external and internal disruptions to retailers’ supply chains. Omnichannel retailer’s ability to respond to the pandemic’s disruption hinges on resilient supply chain strategies.Objectives: This article explored the major supply chain disruptions experienced by South African omnichannel retailers because of the COVID-19 pandemic. Furthermore, it investigated the response strategies employed by the retailers as part of their efforts to mitigate the disruptions caused.Method: This study followed a qualitative, exploratory research design. Data were collected through 17 semi-structured interviews with the senior managers from nine different large omnichannel retailers in South Africa.Results: The study found that omnichannel retailers experienced external and internal supply chain disruptions during the pandemic. The most noticeable external disruption was the drastic migration of consumers to online channels and the retailers’ inability to meet demand surges. Internally, systems constraints of both front- and back-end operations were identified as prominent disruptions. In response, the omnichannel retailers highlighted the importance of being agile to unlocking investments and scale capacity, to plan for the long-term, and to make strategic decisions, fluently.Conclusion: This article adds to the body of knowledge by being one of the first empirical studies to explore the impact of the COVID-19 pandemic on omnichannel supply chains in South Africa. In addition, this article adds to the scarce publications on the impact a ‘Black Swan’ event such as the COVID-19 pandemic can have on supply chains and possible ways retailers can react to similar disruptions in future.
Cross-border e-commerce has emerged with significant attention in the field of international trade. Exports and imports are more integrated with the revolutionary e-commerce platforms where people can buy things from other countries at their fingertips. However, the supply chain behind the business transactions beyond the country's boundaries is more complicated than traditional businesses. The successful supply chain performance of e-commerce depends on many local and international aspects. Issues and challenges of the supply chain rapidly change due to the fast development of internet infrastructure. The chapter identifies some key issues like supply chain facility, inventory management, legal obstacles with today's supply chain performance of international e-commerce. Comprehensive solutions and recommendations are given here with focusing the integration of blockchain technology, which tells how the businesses can initiate the combination of both e-commerce and cryptography for effective intercountry supply chain performance.
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