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Viewpoint: reaching the consumer through e‐grocery VMI

Johanna Småros (Johanna Småros is a Researcher at the Department of Industrial Engineering and Management, Helsinki University of Technology, Finland. and)
Jan Holmström (Jan Holmström is a Senior Research Fellow, at the Department of Industrial Engineering and Management, Helsinki University of Technology, Finland.)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 1 March 2000

Abstract

Current e‐grocery models are based on the consumer making his or her purchase over the Internet, and the e‐grocer delivering the purchase to the household. However, there are numerous opportunities for innovative new services. Analyzes the opportunities offered by bar code and radio frequency identification (RFID) technology to develop a new type of e‐grocery related service, namely vendor‐managed inventory (VMI) in the household. In assessing the opportunity for extending the value offering of an e‐grocery business to VMI in the household a number of key operational issues are addressed, i.e. data capture, solution robustness and cost saving potential in the supply chain. The analysis indicates that the development of new value offerings such as VMI is critical if e‐grocery businesses are ever to gain a competitive advantage over traditional retail formats.

Keywords

Citation

Småros, J. and Holmström, J. (2000), "Viewpoint: reaching the consumer through e‐grocery VMI", International Journal of Retail & Distribution Management, Vol. 28 No. 2, pp. 55-61. https://doi.org/10.1108/09590550010315098

Publisher

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MCB UP Ltd

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