Evaluation the Performing daily procedures of In-Store Logistics Processes in Store Retailing – The Empirical study of fresh milk products

Abstract

In this research, we examine in-store logistics processes for keep storing fresh milk products, from the incoming dock to the shelves of supermarkets. The daily performing procedures of the in-store logistics related to such fast-moving, focus on supporting merchandiser and sales team by taking charge of in-store replenishment, and essential items is challenging, and extremely important for grocery retailers’ sales, profits and image. In our empirical study we survey in-store logistics processes in 52 supermarkets belonging to a major retail chain in central South East of Vietnam. Using a data envelopment analysis (DEA) and simulation, we facilitate process benchmarking. We also identify ways of improving in-store logistics processes by showing the performance impacts of different managerial strategies and tactics. The DEA results indicate different efficiency levels for different store formats; the hybrid store format of the small supermarket exhibits a comparatively worse performance in the analyzed execution of in-store logisticsprocesses. The strategic and tactical design of in-store logistics processes (such as store locations/layouts, capacity management, reorder time, order period and safety stock factors) lead to substantial service performance improvements (such as higher on-shelf availability combined with reduced inventory obsolescence costs) will be detected from the process simulation analysis. The results also show marginal improvements in the performance figures when delivery delays and damage to products are reduced.