LOGISTICAL CHALLENGES AND POTENTIALS IN MULTI-CHANNEL FOOD RETAILING & DISTRIBUTION

Abstract

Manufacturer's concepts for direct supply to food retailers have already been replaced in the 1970s byestablishment of logistical supply networks and concepts. The development of IT-based enterprise resourceplanning systems and the design of efficient networks of stores consequently led to higher availability andimproved service levels for consumers. Although the management of logistics costs always remains challengingwithin existing supply processes, e-commerce adds another new challenge. Existing goods supply processes instore-based retailing will be complemented by additional goods flows from online sales, in future. Studiesincreasingly show the relevance of multi-channel retailing: consumers' loyalty rises, unless additionalinformation and distribution options in food retailing are available online. However, food retailers in Austriaonly recently start opening online distribution channels by providing deliveries of food and hygiene items in owndedicated web-shops. Reasons for that corresponding restraint are diverse: (i) very high store density, (ii) highlevel of consumer satisfaction with current store-based concepts and (iii) the not yet fully developed handling oflogistical procedures and infrastructure in food online processing (e.g. packaging, cooling, etc.). It is necessary toadapt existing supply processes in food retailing to be able to handle the „last-mile“cost- and time-efficient. Themain aspect in terms of these challenges for efficiently logistics processing in online retailing is the creation ofoptimum synergies with existing supply processes. In the underlying research, a derived holistic view of variousrequirements of distribution structures identifies corresponding potential: the role of end consumers in thenetwork is as considered as the predominant process structures and possible last-mile concepts for onlinedistribution in Austrian food retailing. A resulting two-stage potential-rating regards the consumer side as well asretailer-side aspects in order to determine the important economic dimensions and logistics capabilities ofdifferent supply concepts.

Key words: retail supply, distribution, logistics concepts, online retail