Abstract
The grocery concept has evolved over many years to drive cost out of the process. Grocery margins are very thin, typically ranging from 1% to 1 1/2 % such that the grocery business continues to look for innovative ways to take cost out of the process. Ordering groceries on the Internet was initially thought to be a very promising new opportunity. So what happened to on-line grocers? This paper considers what went right and what went wrong for the on-line grocers and uncovers a few logistics lessons along the way.
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