Search results
1 – 4 of 4Michael G. Sternbeck and Heinrich Kuhn
The purpose of this paper is to identify and describe similarities between logistics structures and mid-term planning problems in the grocery retail and automotive industries in a…
Abstract
Purpose
The purpose of this paper is to identify and describe similarities between logistics structures and mid-term planning problems in the grocery retail and automotive industries in a specific internal section of their respective supply chains.
Design/methodology/approach
The benchmarking approach is used as a framework for this paper. It is based on insights resulting from several joint projects with grocery retailers and automobile producers. A particular focus of the research was participating in an exchange of ideas and experience between logistics managers in both industry sectors.
Findings
The authors have identified parallels when comparing the internal retail supply chain of the grocery retail industry, which consists of distribution centres, transportation and in-store logistics, with the internal logistics network in the automotive industry, which consists of logistics supermarkets, transportation and work zone operations at the assembly line. Strong similarities have been found for three planning problems related to tactical planning tasks: assigning products and parts to delivery modes, selecting packaging units and loading carriers, and determining delivery cycles. In comparison to retailing, there is a clearer trend in the automotive industry to plan line-back and align processes with the operator's requirements at the assembly line.
Practical implications
For logisticians in grocery retailing and the automotive industry, this paper provides relevant input for functional benchmarking initiatives and offers an inspirational view beyond the horizon.
Originality/value
This paper is the first to focus on similarities in logistics network structures and planning tasks between the two industries from the viewpoint of grocery retailing.
Details
Keywords
Alexander H. Hübner, Heinrich Kuhn and Michael G. Sternbeck
The purpose of this paper is to develop a holistic operations planning framework for grocery retailing. The authors aim to identify, describe and structure coherent demand and…
Abstract
Purpose
The purpose of this paper is to develop a holistic operations planning framework for grocery retailing. The authors aim to identify, describe and structure coherent demand and supply chain (SC) planning problems in a comprehensive architecture.
Design/methodology/approach
The authors reviewed key literature on retail SC management and sales planning. This built a foundation for the development of an integrated operations planning framework. The findings were evaluated through discussions with retailers and communications with retail planners, including personal interviews with 28 leading European grocery retailers and with people in related positions from the consumer goods industry and consultancies.
Findings
The core of this paper is the development of a coherent demand and SC planning matrix. It demonstrates planning interdependencies and defines a framework for retail operations. The grocery planning framework integrates retail specifics, as well as hierarchical and sequential aspects of decision making. That is why this planning architecture also forms the foundation for research and development of advanced decision support systems.
Practical implications
Planning tasks are identified in interrelated planning modules permitting coordinated and decentralised decision making, which is necessary for operational and complexity reasons. The planning framework assists retail planners in understanding their decision problem from a comprehensive perspective. Better coordination of different modules and further development of retail‐tailored analytical models will improve planning quality.
Originality/value
This is the first paper that structures retail demand and SC planning questions coherently in one framework, matching demand and supply from a long‐ to short‐term perspective and from supplier to customer.
Details
Keywords
Heidi Carin Dreyer, Kasper Kiil, Iskra Dukovska-Popovska and Riikka Kaipia
The purpose of this paper is to explore tactical planning in grocery retailing and propose how process and integration mechanisms from sales and operations planning (S&OP) can…
Abstract
Purpose
The purpose of this paper is to explore tactical planning in grocery retailing and propose how process and integration mechanisms from sales and operations planning (S&OP) can enhance retail tactical planning.
Design/methodology/approach
This work follows an explorative design with case studies from the grocery retailing industry in Finland, Norway, and the UK.
Findings
The tactical planning process focuses on demand management and securing product availability from suppliers in order to reach sales targets. Less attention is directed toward balancing supply and demand or toward providing a single plan to guide company operations. Planning appeared to be functionally oriented with limited coordination between functional plans, but it did include external integration that improved forecast accuracy.
Research limitations/implications
The study involves grocery retailer cases with variable levels of S&OP maturity. The propositions need to be investigated further through action research or additional case studies to confirm their validity.
Practical implications
The study proposes a design of an S&OP process in retailing and propositions for improving tactical planning integration.
Originality/value
The study complements research on retail tactical planning by taking planning process and integration viewpoints. The research suggests that retailers would benefit from a formal and company-wide S&OP process to unify different market-oriented plans to a single set of numbers, thus better balancing supply and demand without sacrificing the emphasis on demand planning.
Details
Keywords
Alexander Hübner, Johannes Wollenburg and Andreas Holzapfel
Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this paper is to…
Abstract
Purpose
Online retailing changes all retail systems significantly. The growing importance of online sales requires the creation of new fulfillment models. The purpose of this paper is to investigate how retailers develop from separate multi-channel (MC) to integrated omni-channel (OC) fulfillment. OC retailing has an integrated perspective, with seamless interactions between online and bricks-and-mortar channels.
Design/methodology/approach
More than 60 internationally active retailers and experts from Germany participated in an exploratory survey. With a response rate of 40 percent the authors achieved the goal to adequately depict the German MC and OC retail market. It is currently the largest empirical study of MC and OC fulfillment.
Findings
It is the first study to comprehensively analyze the logistical development options open to retailers for integrated fulfillment. The authors discuss the conceptual development options and formulate propositions for an advanced OC fulfillment approach. OC retailers aim to pool their organizational units for fulfillment via different channels. Retailers with multiple channels develop their warehouse systems toward channel-integrated inventory enabling flexible and demand-driven inventory allocation. Retailers with channel-integrated inventory also organize their picking procedures in one common zone. The higher the outlet density, the more it becomes beneficial for retailers to introduce pick-up services.
Research limitations/implications
The research is based on insights from retailers and experts from companies based in Germany.
Practical implications
The findings provide an insight into designing OC fulfillment and distribution structures. The concepts themselves, archetypes, challenges and development paths are analyzed. Identified logistics levers can be adjusted to pinpoint the steps required to advance integration.
Originality/value
The authors contribute by deriving propositions and a framework for transitioning from basic MC to integrated, extended OC logistics. Because this research area is still comparatively young, the authors take a more comprehensive, exploratory view of OC fulfillment.
Details