Quotation Reiner, Gerald, Teller, Christoph, Kotzab, Herbert. 2013. Analyzing the Efficient Execution of In-Store Logistics Processes in Grocery Retailing - The Case of Dairy Products. Production and Operations Management. 22 (4), 924-939.


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Abstract

In this article, we examine in-store logistics processes for handling dairy products, from the incoming dock to the shelves of supermarkets and hypermarkets. The efficient execution of the in-store logistics related to such fast-moving, sensitive, and essential items is challenging and crucial for grocery retailers' sales, profits, and image. In our empirical study, we survey in-store logistics processes in 202 grocery supermarkets and hypermarkets belonging to a major retail chain in central Europe. Using a data envelopment analysis (DEA) and simulation, we facilitate process benchmarking. In particular, we identify ways of improving in-store logistics processes by showing the performance impacts of different managerial strategies and tactics. The DEA results indicate different efficiency levels for different store formats; the hybrid store format of the small hypermarket exhibits a comparatively worse performance in the analyzed execution of in-store logistics processes. The process simulation analysis reveals that the strategic and tactical design of in-store logistics processes (such as store locations/layouts, capacity management, reorder time, order period, and safety stock factors) lead to substantial service performance improvements (such as higher on-shelf availability combined with reduced inventory obsolescence costs). The results also show marginal improvements in the performance figures when delivery delays and damage to products are reduced.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Production and Operations Management
Citation Index SCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-A, WH-A
Language English
Title Analyzing the Efficient Execution of In-Store Logistics Processes in Grocery Retailing - The Case of Dairy Products
Volume 22
Number 4
Year 2013
Page from 924
Page to 939
Reviewed? Y
DOI http://dx.doi.org/10.1111/poms.12003
Open Access N

Associations

People
Reiner, Gerald (Details)
External
Kotzab, Herbert (Universität Bremen, Germany)
Teller, Christoph (University of Surrey, United Kingdom)
Research areas (ÖSTAT Classification 'Statistik Austria')
1133 Computer-aided simulation (Details)
5307 Business and management economics (Details)
5316 Industrial management (Details)
5326 Production research (Details)
5354 Business logistics (Details)
5365 Quality management (Details)
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