Development and Empirical Test of a Grocery Retail Instore Logistics Model

Abstract

The purpose of the paper is to introduce a model of Instore Logistics for retail stores. The model attempted to give a picture of all logistics processes that are carried out within a retail outlet from an incoming dock to the check out. The model has afterwards been empirically validated by analyzing the Instore Logistics processes of dairy products in 200 stores in the Austrian grocery retail sector. The findings of the survey show typical problem areas within store operations and identify the impact of the final 50 metres in the store as a key factor impacting upon the success of retail business. The paper continues the work of Raman, DeHoratius & Ton (2001) and Cachon (2001) and the findings contribute to close the execution gap in retail operations.