Premium e-grocery: exploring value in logistics integrated service solutions

Burçin Bozkaya, Ronan De Kervenoael, D. Selcen Ö. Aykaç

Research output: Contribution to conferencePaperpeer-review

Abstract

E-grocery is gradually becoming viable or a necessity for many families. Yet, most e-supermarkets are seen as providers of low value "staple" and bulky goods mainly. While each store has a large number of SKU available, these products are mainly necessity goods with low marginal value for hedonistic consumption. A need to acquire diverse products (e.g., organic), premium priced products (e.g., wine) for special occasions (e.g., anniversary, birthday), or products just for health related reasons (e.g., allergies, diabetes) are yet to be served via one-stop e-tailers. In this paper, we design a mathematical model that takes into account consumers' geo-demographics and multi-product sourcing capacity for creating critical mass and profit. Our mathematical model is a variant of Capacitated Vehicle Routing Problem with Time Windows (CVRPTW), which we extend by adding intermediate locations for trucks to meet and exchange goods. We illustrate our model for the city of Istanbul using GIS maps, and discuss its various extensions as well as managerial implications.
Original languageEnglish
Publication statusUnpublished - 12 Feb 2009
EventInternational conference for prospects for research in transport and logistics on a regional-global perspective - Istanbul, Turkey
Duration: 12 Feb 200914 Feb 2009

Conference

ConferenceInternational conference for prospects for research in transport and logistics on a regional-global perspective
CountryTurkey
CityIstanbul
Period12/02/0914/02/09

Keywords

  • dynamic consumer-led demand
  • e-grocery
  • logistics
  • premium goods

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