E-grocery retailing: from value proposition to logistics strategy

Abstract

This paper develops two frameworks that identify and organise the elements that make up the value proposition and the logistics strategy of grocery pure players. Those frameworks are also applied to see how the elements of both frameworks are related. To identify the key elements and design characteristics, an extensive literature review was conducted. In addition, an exploratory study with five grocery pure players helped connect both frameworks. The value proposition can be classified into ten elements (range, virtual store, order features, area of delivery, sales mode, velocity, time slots, substitutions, returns, and extra services) and the logistics strategy in twelve (warehousing, inventory, procurement, picking, packing, stock out, transport type, transport ownership, consolidation, dispatch time slots, routing, and returned inventory). The case studies underline important differences among the relationships of these elements for intermediaries and independent pure players.