What is the best way to deliver e-grocery orders in the UK?

With the proliferation of e-commerce, e-grocery businesses are enjoying ever-increasing popularity around the world. Britain is regarded as the most developed e-grocery market and retailers in the UK are leading the way regarding e-fulfilment innovations. However, the uptake of e-grocery is not with...

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Main Author: Zhang, Lina
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/29934/
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author Zhang, Lina
author_facet Zhang, Lina
author_sort Zhang, Lina
building Nottingham Research Data Repository
collection Online Access
description With the proliferation of e-commerce, e-grocery businesses are enjoying ever-increasing popularity around the world. Britain is regarded as the most developed e-grocery market and retailers in the UK are leading the way regarding e-fulfilment innovations. However, the uptake of e-grocery is not without its problem. The razor-thin margins of grocery retailing and high e-fulfilment costs have led to the bankruptcy or acquisition of many companies. It is common practice for e-grocery players to keep adjusting their e-fulfilment strategies and delivery related policies as there is no proven successful business model for e-grocers so far. In this thesis, the strengths and weaknesses of e-grocery businesses have been analysed and the targeted customers are highlighted. Moreover, different picking models and delivery modes for online grocery orders are compared. A minimum cost network flow model, along with six experimental scenarios, is presented. Furthermore, a real-life example of Tesco in Croydon is used to test the applicability of the minimum cost network flow model. The results show that the model can generate the optimal solution for retailers in terms of where to pick and how to deliver. The results from the experimental scenarios reveal that the comparison between the difference in picking costs of two picking models and the difference in delivery costs after picking determines, to a great degree, the optimal solution. The study also unveils the impact of factors such as store picking capacity and demand distribution on total operations costs. Managerial implications are discussed for retailers and recommendations are provided for future research.
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spelling nottingham-299342017-10-19T14:58:11Z https://eprints.nottingham.ac.uk/29934/ What is the best way to deliver e-grocery orders in the UK? Zhang, Lina With the proliferation of e-commerce, e-grocery businesses are enjoying ever-increasing popularity around the world. Britain is regarded as the most developed e-grocery market and retailers in the UK are leading the way regarding e-fulfilment innovations. However, the uptake of e-grocery is not without its problem. The razor-thin margins of grocery retailing and high e-fulfilment costs have led to the bankruptcy or acquisition of many companies. It is common practice for e-grocery players to keep adjusting their e-fulfilment strategies and delivery related policies as there is no proven successful business model for e-grocers so far. In this thesis, the strengths and weaknesses of e-grocery businesses have been analysed and the targeted customers are highlighted. Moreover, different picking models and delivery modes for online grocery orders are compared. A minimum cost network flow model, along with six experimental scenarios, is presented. Furthermore, a real-life example of Tesco in Croydon is used to test the applicability of the minimum cost network flow model. The results show that the model can generate the optimal solution for retailers in terms of where to pick and how to deliver. The results from the experimental scenarios reveal that the comparison between the difference in picking costs of two picking models and the difference in delivery costs after picking determines, to a great degree, the optimal solution. The study also unveils the impact of factors such as store picking capacity and demand distribution on total operations costs. Managerial implications are discussed for retailers and recommendations are provided for future research. 2015-09 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29934/1/e-dissertation%20Nina.pdf Zhang, Lina (2015) What is the best way to deliver e-grocery orders in the UK? [Dissertation (University of Nottingham only)]
spellingShingle Zhang, Lina
What is the best way to deliver e-grocery orders in the UK?
title What is the best way to deliver e-grocery orders in the UK?
title_full What is the best way to deliver e-grocery orders in the UK?
title_fullStr What is the best way to deliver e-grocery orders in the UK?
title_full_unstemmed What is the best way to deliver e-grocery orders in the UK?
title_short What is the best way to deliver e-grocery orders in the UK?
title_sort what is the best way to deliver e-grocery orders in the uk?
url https://eprints.nottingham.ac.uk/29934/