Anatomy of a Dot-Com Failure: The Case of Online Grocer Webvan

Aspray, William; Royer, George; Ocepek, Melissa G.

doi:10.1007/978-3-319-01598-9_2

Cited by 13 publications

(11 citation statements)

References 9 publications

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“…This study aimed to explore how small andmedium e-grocery businesses use innovations to bridge the supply chain challenge of limited resources and under-developed logistics infrastructure. The conceptual framework depicted in Figure 4 brings together the major findings of mobile application supported urban-township e-grocery retail (1), associated e-grocery distribution models (2) and logistics processes (3) Mobile application configured framework for urban-township e-grocery distribution models IJPDLM e-grocery retail resurgence which is considered a major barrier to entry (Ishfaq et al, 2016;Aspray et al, 2013). The supply chain innovations (4) are divided into three: for addressing under resources, under-logistics infrastructure, and those that fuel retail practices as discussed in depth in the sub-sequent sections.…”

Section: Discussionmentioning

confidence: 99%

“…An interview guide was developed based on the elements of logistics with consideration paid to the context of e-grocery operations outlined by Mkansi et al (2018). An exploration of the eight e-retailers in terms of their logistics elements provided an opportunity to identify diverse and common practices existing between township and urban e-grocery players, in particular their effect on the cost of operation (Ishfaq et al, 2016;Aspray et al, 2013;Asdemir et al, 2009) and profit strategies recognised as a major barrier to entry. At the same time, the method provided an insight into the South African township context.…”

Section: Methodsmentioning

confidence: 99%

“…Introduction E-grocery retail business models have been studied mostly in urban and city environments (Morganti et al, 2014;Durand and Gonzalez-Feliu, 2012;Gevaers et al, 2011;Murphy, 2007). The urban and city focus is due to the perception of complexities and cost associated with supply and distribution of e-groceries in such environments (Ishfaq et al, 2016;Aspray et al, 2013). However, findings from such studies prove difficult to be rolled out easily to townships and rural areas where road and internet infrastructure is still in its infancy (Foster and Briceno-Garmendia, 2010;Murphy, 2007).…”

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confidence: 99%

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Mobile application supported urban-township e-grocery distribution

Mkansi¹,

Leeuw²,

Amosun³

2019

IJPDLM

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Purpose The purpose of this paper is to present a mobile application supported townshipand urban e-grocery distribution models that uses a software application (app) to bridge the infrastructural barriers, costs and complexities associated with e-grocery delivery operations in rural township areas. Design/methodology/approach Using a qualitative multi-case approach and semi-structured interviews, the study explored distribution practices of eight national emerging e-grocery retail businesses to demonstrate how mobile applications can facilitate South African urban and township e-grocery delivery models. Findings The study reveals how the need to scale the use of new mobile application innovations fuels value-added services that power new e-grocery distribution models. Of interest is how the application aggregates demand rapidly, respond to demand within a short lead time and how e-grocers use competitors’ stores as their fulfilment centres. The use of apps reveals a slow transformation of society towards an inclusive model that integrates different types of workers in an informal context. Practical implications The mobile application value-added service business model offers a new wave of scaling e-grocery retail to rural and township areas constrained by technological, economic and road infrastructure. The apps transcend e-grocery barriers and enables small businesses with limited resources to leverage e-grocery market opportunities that are unimaginable in townships and rural areas. Originality/value The innovative mobile platform-base model offers emerging contextual insight of a pull e-grocery distribution model that demonstrates the supply chain innovations for addressing under-resource and under-developed logistics infrastructure.

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Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

mentioning

confidence: 99%

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Mobile application supported urban-township e-grocery distribution

Mkansi¹,

Leeuw²,

Amosun³

2019

IJPDLM

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“…While research so far has focused on the customer and service aspects, we consider a logistical perspective for OC grocery. Its success not only depends on whether it is accepted by the customer, but goes hand in hand with an appropriate, scalable and cost-efficient fulfilment and delivery model [ de Koster, 2002;Aspray et al, 2013].…”

Section: Conclusion and Further Areas Of Researchmentioning

confidence: 99%

“…By 2018, grocery retailing will surpass consumer electronics in online sales to become the second largest category in Europe after apparel [Forrester, 2014]. The biggest challenge in designing a successful business model with OC grocery retailing is the high cost and complexity of fulfilment for groceries bought online [Aspray et al, 2013]. Six out of ten challenges relating to online shopping have their roots in last mile fulfilment [Fernie and McKinnon, 2009].…”

Section: Introductionmentioning

confidence: 99%

Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework

Hübner

Kühn

Wollenburg

2016

International Journal of Retail &Amp; Distribution Management

329

374

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Purpose For traditional grocery retailers, the growing importance of online sales means creating new logistics models for omni-channel (OC) management. Due to these transformational changes, retail research and practice are lacking a comprehensive view on integrated fulfilment and distribution concepts for home and store deliveries as they have evolved recently. This paper develops a planning framework for last mile order fulfilment in OC grocery retailing and discusses the advantages and disadvantages of different design concepts. Design/methodology/approach The findings were developed and evaluated by means of explorative interviews with grocery retail and logistics experts. Additionally, key literature on last mile order fulfilment and retail supply chain management was reviewed to supplement the integrated OC grocery operations planning framework. Findings OC logistics planning can be structured into back-end fulfilment (e.g. warehouse and in-store picking) and last mile distribution concepts (e.g. attended and unattended home delivery). The design choices depend on country specifics (e.g. population density), retailer specifics (e.g. capability for cross-channel process integration) and customer behaviour (e.g. possibility of unattended home delivery). The application areas and their contextual factors are discussed for each design parameter. Practical implications The last mile fulfilment options identified can be applied to pinpoint the necessary steps for further optimizing OC integration. Grocers can gain insights into current fulfilment concepts used in different contexts. This architecture also forms the foundation for further research on decision support systems. Originality/value The coherent planning framework summarizes the general design options for last mile order fulfilment arising from new requirements for OC fulfilment.

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An optimisation approach for the e-grocery order picking and delivery problem

Vazquez‐Noguerol

Comesaña-Benavides

Mula

et al. 2020

Cent Eur J Oper Res

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Traditional supermarket chains that are adopting an omni-channel approach must now carry out the order picking and delivery processes to serve online orders, previously done by the customer. The complexity of the logistics processes has increased, therefore modelling and optimising e-grocery operations becomes definitely important. Since there are few studies modelling order picking and delivery processes, we propose an approach that simultaneously optimises the decision variables of different functions which have traditionally been treated separately. In this study, we present a linear programming model for store-based e-fulfilment strategies with multiple picking locations. The proposed model optimises the allocation of online orders to stores, based on the e-fulfilment costs. As well as minimising the picking and delivery costs, the proposed approach consolidates workloads in order to avoid idle times and reduce the amount of resources required. A weighted sum method is applied to compute the solution, integrating parameters that represent different store features such as the product range, sales mode and physical store activities. The proposed model has been tested on one of the largest grocery sellers, showing that substantial savings can be achieved by reallocating orders to different stores, time windows and delivery vehicles. By focusing on optimising e-fulfilment resources, this approach serves as a guide for traditional grocery sellers to redesign their supply chains and to facilitate decision-making at a managerial level. KeywordsMILP • e-commerce • e-grocery • omni-channel retailing • order fulfilment • optimisation Mar Vazquez-Noguerol

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Anatomy of a Dot-Com Failure: The Case of Online Grocer Webvan

Cited by 13 publications

References 9 publications

Mobile application supported urban-township e-grocery distribution

Mobile application supported urban-township e-grocery distribution

Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework

An optimisation approach for the e-grocery order picking and delivery problem

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