Using EPP Boxes in a Dark Store: A New Approach to Simplify Food Retail E-Commerce Deliveries

Abstract

Background: E-commerce has emerged as a good response to the pandemic of COVID-19. However, the costs of providing a service, which includes a driver and a vehicle, in a regular vehicle that can transport goods that need positive cold (0° to 5°C) are very high. Objectives: This paper aims to investigate how a big Portuguese retailer company can reduce its dependence on refrigerated vehicles, simplifying operations and reducing the costs of transporting positive and negative cold food. Methods/Approach: This research was carried out in a food retailer Portuguese company, more precisely in a Dark Store dedicated to the online channel. The study was developed based on the AS-IS/TO-BE process analysis methodology, starting with the analysis of the current situation, giving rise to the so-called AS-IS model. Results: It was possible to reduce costs associated with transporting positive cold goods. As a result, there are 30% fewer costs associated with order transportation. With an additional 10% in space optimization with the gain of space within the galley of each vehicle. Conclusions: The costs of transporting positive and negative cold foods were decreased, and substituting vehicles with room temperature transport reduced the need for refrigerated vehicles.