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

Zhang, Lina (2015) What is the best way to deliver e-grocery orders in the UK? [Dissertation (University of Nottingham only)]

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Abstract

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.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Zhang, Lina
Date Deposited: 24 Mar 2016 09:35
Last Modified: 25 Oct 2016 05:39
URI: http://eprints.nottingham.ac.uk/id/eprint/29934

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