Enhancing in-store picking for e-grocery: an empirical-based model

Abstract

PurposeThis paper identifies, configures and analyses a solution aimed at increasing the efficiency of in-store picking for e-grocers and combining the traditional store-based option with a warehouse-based logic (creating a back area dedicated to the most required online items).Design/methodology/approachThe adopted methodology is a multi-method approach combining analytical modelling and interviews with practitioners. Interviews were performed with managers, whose collaboration allowed the development and application of an empirically-grounded model, aimed to estimate the performances of the proposed picking solution in its different configurations. Various scenarios are modelled and different policies are evaluated.FindingsThe proposed solution entails time benefits compared to traditional store-based picking for three main reasons: lower travel time (due to the absence of offline customers), lower retrieval time (tied to the more efficient product allocation in the back) and lower time to manage stock-outs (since there are no missing items in the back). Considering the batching policies, order picking is always outperformed by batch and zone picking, as they allow for the reduction of the average travelled distance per order. Conversely, zone picking is more efficient than batch picking when demand volumes are high.Originality/valueFrom an academic perspective, this work proposes a picking solution that combines the store-based and warehouse-based logics (traditionally seen as opposite/alternative choices). From a managerial perspective, it may support the definition of the picking process for traditional grocers that are offering – or aim to offer – e-commerce services to their customers.