Logistics drivers for shelf stacking in grocery retail stores: Potential for efficiency improvement

Zelst, van Sm; Donselaar, van Kh Karel; Woensel, van T Tom; Broekmeulen, Racm Rob; Fransoo, JC Jan

doi:10.1016/j.ijpe.2006.06.010

Cited by 63 publications

(32 citation statements)

References 20 publications

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“…In their study of one of Sweden's largest grocery retail supply chains, Saghir and Jönson (2001) found that 75% of all handling times in the retail chain occurred within the store. van Zelst et al (2009) further identified in-store handling costs to be the largest costs in the entire retail supply chain. Aastrup et al (2012) have argued that several of these in-store logistics activities, including storage, preparatory activities, and displays, should be considered for relocation to the UCC.…”

Section: Benefits For the Receivers By Using A Uccmentioning

confidence: 99%

Urban consolidation centres: retail stores’ demands for UCC services

Johansson

Björklund

2017

IJPDLM

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Purpose Urban consolidation centres (UCCs) are often conceived to improve services in retail stores and potentially reduce costs. However, few studies have examined how retail stores perceive the services a UCC could provide. The purpose of this article is to explore retail stores' potential demands for different services that a UCC could provide in order to foster the development and implementation of UCC solutions aimed towards more economically feasible business models.Design/methodology/approach Structured interviews were conducted with employees at 72 retail stores. Qualitative, as well as quantitative analyses, were conducted to identify the potential demands of the retail stores. FindingsWe have provided arguments why retail stores might be interested in UCC services, and thereby potentially pay for them. Improved customer service to stores' customers might not be a valid argument. We point to the cost aspect: stores expend resources that a UCC could provide in a more cost-efficient manner. Research limitations/implicationsThe findings contradict previous studies to some extent, as it indicates that a UCC may actually not enhance customer service in retail stores. Instead, our findings point to the importance of considering the potential advantages according to economies of scale that are facilitated by UCC services. Practical limitations/implications Taking the perspective of the stores is important in order toidentify arguments for why they should pay for the services provided by a UCC. 2Social implications: Financially viable UCC solutions are needed in order for the initiatives to be maintained and thereby provide a long-term decrease in the environmental and social footprint caused by urban freight.Originality/value This study answers the call for research addressing retailers' perspective in urban logistics, as it takes a demand-driven perspective of the development of UCC services.Furthermore, by highlighting services requested by retail stores, it can guide the financing of UCC initiatives, an aspect that has been lacking.

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Section: Benefits For the Receivers By Using A Uccmentioning

confidence: 99%

Urban consolidation centres: retail stores’ demands for UCC services

Johansson

Björklund

2017

IJPDLM

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“…(2) Ordering decision Since ordering decisions impact store operations, thorough reorder planning is crucial for retailers (see e.g., Fisher 2009;Zelst et al 2009;Donselaar et al 2010;DeHoratius and Zeynep 2015). Kuhn and Sternbeck (2013) use qualitative interviews to identify that space management and in-store logistics are not yet well aligned, and that this constitutes a new area of research.…”

Section: Conceptual Background and Decision Problemmentioning

confidence: 99%

“…Current literature serves as a starting point for defining the process steps for in-store logistics (e.g., Kotzab and Teller 2005;Zelst et al 2009;Reiner et al 2013), but does not sufficiently detail the costs affected by shelf-space planning and reordering. Curşeu et al (2009) conduct a similar time and motion study on parts of the direct replenishment process.…”

Section: Summary and Research Contributionmentioning

confidence: 99%

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Effect of replenishment and backroom on retail shelf-space planning

Hübner

Schaal

2017

Bus Res

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Shelf-space optimization models support retailers in making optimal shelf-space decisions. They determine the number of facings for each item included in an assortment. One common characteristic of these models is that they do not account for in-store replenishment processes. However, the two areas of shelf-space planning and in-store replenishment are strongly interrelated. Keeping more shelf stock of an item increases the demand for it due to higher visibility, permits decreased replenishment frequencies and increases inventory holding costs. However, because space is limited, it also requires the reduction of shelf space for other items, which then deplete faster and must be reordered and replenished more often. Furthermore, the possibility of keeping stock of certain items in the backroom instead of the showroom allows for more showroom shelf space for other items, but also generates additional replenishment costs for the items kept in the backroom. The joint optimization of both shelf-space decisions and replenishment processes has not been sufficiently addressed in the existing literature. To quantify the cost associated with the relevant in-store replenishment processes, we conducted a time and motion study for a German grocery retailer. Based on these insights, we propose an optimization model that addresses the mutual dependence of shelf-space decisions and replenishment processes. The model optimizes retail profits by determining the optimum number of facings, the optimum display orientation of items, and the optimum order frequencies, while accounting for space-elasticity effects as well as limited shelf and backroom space. Applying our model to the grocery retailer's canned foods category, we found a profit potential of about 29%. We further apply our model to randomly generated data and show that it can be solved to optimality within very short run times, even for large-scale problem instances. 123Business Research (2017) 10:123-156 DOI 10.1007 replenishment cost on retail profits and solution structures. Based on the insights gained from the application of our model, the grocery retailer has decided to change its current approach to shelf-space decisions and in-store replenishment planning.

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“…Thus, worker familiarity with item locations has frequently been cited as a major advantage of dedicated storage assignments (Jane and Laih, 2005;de Koster et al, 2007;Bindi et al, 2009;van Zelst et al, 2009;Chuang et al, 2012), where worker familiarity implies human learning.…”

Section: Experimental Investigationsmentioning

confidence: 99%