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From bricks-and-mortar to bricks-and-clicks: Logistics networks in omni-channel grocery retailing

Johannes Wollenburg (Catholic University Eichstätt-Ingolstadt, Ingolstadt, Germany)
Alexander Hübner (University of Luxembourg, Luxembourg City, Luxembourg)
Heinrich Kuhn (Catholic University Eichstätt-Ingolstadt, Ingolstadt, Germany)
Alexander Trautrims (Department of Operations Management and Information Systems, Nottingham University Business School, Nottingham, UK)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 22 January 2018

Issue publication date: 1 May 2018

9802

Abstract

Purpose

The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the general understanding of such bricks-and-clicks logistics systems for grocery is still limited, the purpose of this paper is to analyze the internal logistics networks used to serve customers across channels by means of an exploratory study with retailers from different contexts.

Design/methodology/approach

A total of 12 case companies from six European countries participated in this exploratory study. Face-to-face interviews with managers were the primary source for data collection. The heterogeneity of the sample enabled the authors to build a typology of logistics networks in grocery retailing on multiple channels and to understand the advantages of different warehousing, picking, internal transportation and last-mile delivery systems.

Findings

Bricks-and-mortar grocery retailers are leveraging their existing logistics structures to fulfill online orders. Logistics networks are mostly determined by the question of where to split case packs into customer units. In non-food logistics, channel integration is mostly seen as beneficial, but in grocery retailing, this depends heavily on product, market and retailer specifics. The data from the heterogeneous sample reveal six distinct types for cross-channel order fulfillment.

Practical implications

The qualitative analysis of different design options can serve as a decision support for retailers developing logistics networks to serve customers across channels.

Originality/value

The paper shows the internal and external factors that drive the decision-making for omni-channel (OC) logistics networks for previously store-based grocery retailers. Thereby, it makes a step toward building a contingency and configuration theory of retail networks design. It discusses in particular the differences between grocery and non-food OC retailing, last-mile delivery systems and market characteristics in the decision-making of retail networks design.

Keywords

Acknowledgements

The authors are deeply grateful to the Bayerische Forschungsallianz (BayFOR) for financial funding of this empirical study. The authors would also like to thank the participating logistics managers and experts for their time and effort during the interviews as well as the guest editor and two anonymous reviewers for their valuable feedback which significantly improved the contribution of the paper.

Citation

Wollenburg, J., Hübner, A., Kuhn, H. and Trautrims, A. (2018), "From bricks-and-mortar to bricks-and-clicks: Logistics networks in omni-channel grocery retailing", International Journal of Physical Distribution & Logistics Management, Vol. 48 No. 4, pp. 415-438. https://doi.org/10.1108/IJPDLM-10-2016-0290

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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