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

Johannes Wollenburg, Alexander Hübner, Heinrich Kuhn, Alexander Trautrims

Research output: Contribution to journalArticlepeer-review

154 Scopus citations

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.

Original languageEnglish
Pages (from-to)415-438
Number of pages24
JournalInternational Journal of Physical Distribution and Logistics Management
Volume48
Issue number4
DOIs
StatePublished - 1 May 2018
Externally publishedYes

Keywords

  • Exploratory study
  • Grocery retailing
  • Logistics networks
  • Omni-channel retailing
  • Retail logistics
  • Typology

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