Efficient store replenishment through internet-based information-sharing and collaborative supply-chain practices in grocery retailing

Abstract

The work presented in this dissertation has been motivated by the current supply-chain collaboration activities taking place in the grocery retail sector and the enabling role that advanced information technologies and the Internet play in supporting these practices. Through relevant literature and field review, the study has analysed the problems that currently exist in the product replenishment process at the store level, focusing on the problem of out-of-shelf. Towards overcoming these problems, the research formulates two suggestions: a. The application of information-rich store order decision support tools, referred to as O-DSS, contributing towards increasing the effectiveness and efficiency of the store ordering process, and b. The collaboration between retailer and supplier with the objective to support the store ordering process, referred to as process of collaborative store ordering (PCSO). The research further defines the requirements, functionality and design of the underlyingsystems required to support the suggested practices. The research hypotheses examine the extent to which the adoption of O-DSS and PCSO practices in the store ordering process have a positive impact on reducing the level of out-of-shelf situations. The hypotheses are tested in two field experiments, involving one retailer and three to five suppliers. The results from the field experiments indicate that both the application of ODSS and PCSO lead to reductions in the out-of-shelf situations, especially in respect to reducing the out-of-shelf situations associated with problems in the ordering process.Additional findings from the field experiments are also discussed from a qualitative research perspective.