Retail Network Research Articles

MULTI-CHANNEL TRADE INFLUENCE IN THE LOGISTICS RESEARCH CONTEXT

The study presents in general terms the changes and trends that have emerged in the last decade and concern sales model implementation in companies operating on the Ukrainian consumer market. The presented trends influence on the above-mentioned entities` behavior model from the perspective of using certain operational and strategic management tools is analyzed. The reasons for shifting priorities in the relations development within the structure of vertically integrated and vertically located entities with an eye to the realities of the consumer market new paradigm are indicated. The demand development features in the new conditions and changes that have occurred in the consumers` actions, as well as the accompanying prospects for the development of the consumer-expected competencies of the seller are highlighted. The facts of brand-new marketing and logistics practice dissemination are presented. This is about such a modern method of implementing sales competencies as sales through multi-channel retail networks and supply chains. The influence of new logistics and marketing tools on the nature of competitive relations within the studied market boundaries is also described. The reasons for the need to include new trade relations development trends in the program of scientific and methodological development of logistics and marketing strategies are revealed. As a result, the necessity of performing the conceptual and categorical apparatus synthesis for further research of e-Commerce practice is revealed and indicated. Based on the results obtained at the current stage, a system of indicators was established in order to identify the differences between the traditional single-channel sales methodology and the features of multi-channel supply chain management. When developing this system, it was decided to divide the indicators by their functional characteristics. To achieve the goal set in this study, the selection of indicators was focused on the logistics component of single- and multi-channel supply chains. The resulting indicators system was used to perform a comparative analysis of the mentioned supply chains. Along with the direct results presented in the manuscript, the analysis allowed us to describe in general terms the differences between traditional stationary retail trade and trade using information technology tools. Among other things, the analysis of scientific sources on this topic allowed us to come to some conclusions about the advantages of using multi-channel sales systems.

Channels for distributing goods as a factor in the development of the circulation sphere

The article has substantiated the criterion system of channels for distributing commodity resources, as a complex of intermediary activity of the stream of commerce area. The classification of channels for distributing goods has been developed into direct, indirect and mixed depending on the priority of choice. The specificity of their activity has been determined. Wе claim that intermediaries, who perform the functions of both bringing the goods closer to the ultimate consumer and the corresponding ownership, are the channels for distributing commodity products. We also claim that the distribution channels of goods and the commodity flow system have different vectors of information flows, which are revealed through the correction retraction with the consumer. The article has substantiated the factors of influence on purchasing and marketing activity of the subjects of the retail network and intermediary structures, which is justified by the functional structure of sales management, as well as the system of analysis and control over the process of distribution and activity of the participants of distribution channels at the commodity market. The article has improved the system of implementing a specific variant of the logistics center’s placement, which should proceed from the criterion of optimality of the ratio between the expenses for guaranteeing the work of the warehouse economy and increase of the efficiency of servicing of enterprises and organizations of retail trade. It has been concluded in the result of the research that the achievement of an effective level of competitiveness of the subject is achieved by segmenting the market aimed at forming homogeneous groups according to certain criteria. This research has been proved that the formation of methods of stimulating sales through the provision of additional services for the supply of goods and the system of delaying payment for them has the crucial role within the pricing system. It has been noted that the effective indicators of the research in the field of studying distribution channels of commodity products is the analysis of the dynamics of sales and customers’ reactions to changes in the organization of the sales of goods area, where the motives for purchases, the relationship of changes in pricing policy and conditions of sale, the provision of additional services are analyzed.

Comparison of Grocery Shopping Behaviour of Slovak Residents on the Slovak-Austrian Border: an Empirical Study – Hainburg an der Donau

Food is a part of human life, forming its existential and cultural basis. It also has become the basis of trade and a measure of the level of one or another culture, the engine of economic development. All these themes resonate more and more in debates in Slovakia as well. There are several reasons why. Slovaks still pay relatively more for food in comparison to neighbouring Austrians, who benefit from a rich offer of food at an affordable price. This might be related to an organized agricultural landscape, which is the product of economically prosperous food production. Bratislava residents’ dissatisfaction with shopping experiences and products on offer in the current retail network in Bratislava forces them to travel to shop in the town of Hainburg an der Donau. The article states the types of Slovak consumers and their identities. An empirical study was conducted on a sample of 909 Slovak consumers shopping in Austrian grocery stores located in Hainburg an der Donau on the Slovak-Austrian border. The respondents rated their shopping experience and products on offer in the town. The study compares Slovak and Austrian stores based on the consumers’ reasoning behind purchasing food in Austria and consumer satisfaction with the stores in both countries. Multidimensional scaling was used to present the results of the study. The results of the study represent a comparison of shopping behaviour of Slovak residents when considering shopping in Austria. Constructed perception maps identify the main types of consumers indicating the largest discrepancy in purchasing groceries in Austrian and Slovak stores.

Optimization of economic and environmental factors of the logistic system of enterprise management

The purpose of the study is to develop an economic-mathematical model of the socio-economic system, which takes into account its logistical structure and ecological viability. This allows for optimal budget planning for the new project. The methodology of the study is based on the method of J. Forster, who proposed to consider the logistics system of any enterprise as a system of reservoirs linked by material, financial and information flows. The main result of the study is as follows. The methodology is designed and developed a mathematical program that allows estimating the relative value of fixed assets of production and the number of costs for creating a retail network with the impact of the environmental components. It is shown that this ratio is determined by the value of all key parameters of the enterprise logistics system. This result was obtained through careful modeling of structural changes in the logistics system of the enterprise. All basic communications (flows) between the elements of the logistics system were also considered. Calculations were conducted for the system of the equations which have been written down in shape with discrete-time. At the same time modeling was carried out so that there were no “not physical” phenomena (such as overflow of warehouses, etc.). As a result of calculations, optimum values for all basic characteristics of the new project have been specified. The most actual has separately been considered for practice as a case of optimum planning of storage facilities. The practical importance of research consists that scientific representations about interrelation of the capacity of the enterprise with key parameters of the logistic system can form a basis for more effective planning and management budgetary and production processes at the enterprise, namely: it is more reasonable to plan scales of production and expenses on logistics creation.

IT Support for the Goods Reallocation Process in the Textiles-Based Fashion Retail

The process of moving goods from locations with the weakest rotation to those with high rotation in order to speed up the process of disposing of inventory in the entire retail network can be described as an assignment of goods. This process is particularly important in the textiles- based fashion industry, where external purchases for the retail network are often made once and the goods have shallow stocks. In order to optimise the stream of materials, the use of an integrated IT system is essential. Therefore, the main purpose of this publication is to show how IT solutions can be used to simplify the automation and optimisation of the process of generating proposals for goods reallocation within the retail network. The study covered selected companies from the textiles- based fashion industry.

FATTY ACID CONTAINMENT IN ORGANIC CHICKEN-BROILERS MEAT AND TRADITIONAL GROWING

The article presents the results of the study on fatty acids content of broiler chickens purchased from retailers and broiler chickens grown in organic farming. In the study we compared the obtained results. There are also results of the influence of developed preventive drug postbiotic on the fatty acid composition of broiler chickens. The samples were compared in terms of their nutritional value and quality. Chicken that goes into the retail network is obtained from broiler chickens grown in a traditional (intensive) technological way. Organic poultry is extensive. For the experiment in organic farming, we formed the 2 groups (control and experiment). In the experimental group, broiler chickens received a prophylactic preparation - a postbiotic with organic feed, and no drugs were used in the control. In-depth studies of the mechanisms of its effect on the body of chickens and the quality of the products obtained were studied changes in the fatty acid composition of total lipids in skeletal muscle and the biochemical composition of the muscle tissue of chickens. There were no significant changes in the fatty acid content of the tested meat compared with the control group. The content of palmitoleic, linoleic and caprylic acids is slightly increased. The fat content of heavy broiler chickens is much higher than that of broiler chickens. The best fatty acid ratio of omega-3 and omega-6 is found in organic chicken meat. Retail chicken meat has a lower omega 6 content, significantly higher than palmitic acid omega 3. Organic chicken meat contains 3-5% less fat compared to retail chicken. In the meat of chickens grown using organic technology, the amount of saturated fatty acids increased significantly by 11.13%, there is a significant decrease in omega-6 fatty acids by 7.57% and an increase in the amount of omega-3 fatty acids by 0.8% compared to with chicken from the retail chain. Therefore, the value of organic chicken meat lies not only in the absence of residues of antibiotic substances, pesticides and herbicides, but also in its biological value and dietary properties.

Shopping Cart Analysis System in Product Layout Management with Apriori Algorithm

Coco Mart which is one of the retail network brands engaged in household needs is a company from PT. Bali Pawiwahan (Coco Group). As time goes on, transaction data continues to multiply and cannot be utilized by managerial parties to process transaction data that continues to grow every time. From transaction data, there is information or knowledge that can be extracted. The results of the research conducted, the construction of a shopping basket analysis system to process sales transaction data over the past four years, starting from 2013 with the aim of knowing consumer spending patterns. So that the Shopping Cart Analysis System can be a decisions support in business strategies to regulate the layout of goods and promote product combinations that are often purchased by Coco Mart Jimbaran customers.

Promoting sustainability of the integrated production-inventory-distribution system through the Physical Internet

Owing to its interconnections and open characteristics, Physical Internet (PI) has the potential to help companies meet the sustainability challenges. In this paper, to investigate the sustainability performance of the PI in an integrated production-inventory-distribution system, we propose a multi-objective mixed integer linear programming model (MOMILP) that encompasses all three dimensions of sustainability. The economic and environmental objectives are measured through the total cost and greenhouse gas (GHG) emissions, respectively. The social objective is captured by the impact of accident risk. Then, we solve the model by using the augmented ϵ-constraint method and compare the sustainability performance of the PI-enabled model with that of models enabled by the traditional (TR) and horizontal collaboration (HC) networks. The results show that the PI can not only improve the economic and environmental performance by increasing vehicle utilisation, but also alleviate the impacts of accident risks by avoiding risky routes. More interestingly, good compromise solutions featuring the PI can further improve the sustainability performance while guaranteeing the performance of the TR at the ideal point—something unachievable for the HC and TR. Moreover, sensitivity analyses demonstrate that the PI can still guarantee significant sustainability performance advantages under different common retailer quantities and network structures.

ФІЗИКО-ХІМІЧНІ ПОКАЗНИКИ ЯКОСТІ РІЗНИХ СОРТІВ МЕДУ

У статті досліджено органолептичні та фізико-хімічні показники якості меду різних сортів, що представлений у торговельних мережах м. Запоріжжя. Проаналізовано рН розчинів меду, масову частку води, кислотність та діастазне число. Встановлено, що всі досліджувані зразки відповідають нормам ДСТУ. Жодний зразок меду не містить механічних домішок, желатину, крейди, борошна або крохмалю. За показниками кислотності, діастазного числа та масової частки води досліджувані сорти відповідають нормативним вимогам. З’ясовано, що всі розчини меду мають кисле середовище.

MARKETING STUDIES OF CONSUMPTION PREFERENCES AT DEVELOPING DIETARY PRODUCTS

Results of marketing studies of consumption motivations and preferences at choosing bread for special dietary consumption are presented. It has been established, that 18 % of questioned give advantage to bread with a decreased amount of carbohydrates; 17 % of respondents consume bread without gluten; 13 % give preference to products, including nutrients; 10 % by iodine-containing bread; 7 % and 6 % of questioned give preference to bread with a content of soya and entersorbents. It has been established, that bread with a content of carotene and lecithin is not widely demanded among respondents as 3 % for each one. Studies of % of preferences by flour types in the bread composition allowed to make conclusions that 19 and 17 % of respondents give preference to corn and buckwheat flour due to a higher content of healthy substances, it is also an important advantage that these flour types don’t contain cellulose complexes, present in the composition of wheat and barley flour, preferred by 14 and 11 % of questioned, respectively. It has been established by the experimental way, that 20 % of questioned persons feel a lack of bread with an increased content of protein at the market. 15, 12 and 10 % of respondents want widening the assortment of bread with an increased content of macroelements, vitamins and microelements. 13 and 10 % of questioned feel a lack at the market in such physiological-functional ingredients as polyunsaturated fatty acids and products of gluten-free flour. 8 % of respondents want to see in the retail network products with a content of dietary fiber and antioxidants. 9 % feel a lack of bread with a content of probiotics, 3 % of oligosaccharides. Based on the obtained results, there have been determined consumption advantages: a modern consumer gives preference to products with the improved content, usual organoleptic parameters, long storage term, low price. He/she is guided by the following criteria at buying bread: food value, caloric value, prophylactic properties.

Безпека використання протимікробних ветеринарних лікарських засобів в контексті ветеринарного фармаконагляду

У статті представлена модель дослідження безпеки при післяреєстраційному використанні протимікробних ветеринарних лікарських засобів в контексті вимог ветеринарного фармаконагляду. Найбільш поширеними заходами, які сприяють дослідженню безпеки застосованих протимікробних ветеринарних лікарських засобів є моніторинг і налагоджена система звітності за їх використанням в створеній виробником/власником реєстраційного посвідчення корпоративній системі ветеринарного фармаконагляду, яка підтверджена інформативною базою даних.

An Empirical Analysis of Intra-Firm Product Substitutability in Fashion Retailing

This study offers an empirical investigation of inventory and sales dynamics in a large-scale retail network setting. We infer the impact of product shortages on sales in neighboring outlets using unique data from a large fast fashion retailing chain. Since the product shortages do not occur at the same time, we conduct a novel Difference-in-Differences (DiD) methodology to align the stock-out periods across the stores in the network. In addition, we stratify data based on the periods in which stock-out is observed and apply pairwise DiD analyses to validate the robustness of our results. Our analysis reveals that sales for a particular item at a focal store increases when that same item experiences stock-outs in neighboring stores, especially so for neighboring stores that are physically closer to the focal store. These findings suggest that there is substitutability across stores, and that this substitutability is the strongest in the period when the stock-out is observed for the first time, and decreases in the time since the stock-out and dissipates with physical distance. In order to assess the value of considering the impact of stock-outs on inventory allocation, we develop an optimization model and calibrate it by using parameters estimated via DiD analysis. The simulation analysis confirms that revenues markedly improve on average by 2.2% when neighboring stock-out information is taken into account for sales forecasting when optimizing inventory allocations. Finally, we conduct sensitivity analysis to evaluate how this effect changes with problem parameters such as product price, and inventory.

Main Spatial Trends in the Development of Network Food Trade in Russia in 2000–2017

The development of the food retail network in Russia began relatively recently. For 20 years, starting from the end of the 1990s, it has traveled the path from the first imperfect quasi-network structures to a modern mature stage, which is characterized by strengthened concentration and increased competition in the market. The paper considers the main trends in the transformation of its territorial structure at three levels: regions, large cities, and individual companies. The study is based on official statistics, aggregate data from leading network retailers, and materials from consulting agencies. The Russia’s socioeconomic heterogeneity and the catch-up nature of the development of domestic network trade have resulted in nonuniform coverage of the country’s territory with its services, as well as the uniqueness of the presented trade formats. In recent years, a limited group of regions has emerged in which the active development of the food retail network continues. In the rest of the country, it is proceeding much slower or is at the initial stage. Despite the fact that the differentiation of regions in the share of network trade in retail turnover continues to slowly decline, the gap between centers with different population sizes differing in the level and variety of available network retail services is becoming more and more noticeable.

Retail Chains in Russia: Some Aspects of State Regulation

The objective of this paper is to substantiate some proposals for improving state regulation of the retail network in Russia. In some regions of Russia, there is a lack of retail supply for the population, which requires government support for retail network development. State regulation of the trading network in Russia is carried out via establishing by the authorities of Russia’s administrative regions and local authorities of the minimum standards for public provision of trading floor space. However, only 3% of municipalities in Russia develop these standards; it reflects a low practical significance of the established indicators. The authors made a hypothesis that the indicators of retail floor space per thousand inhabitants, used as standards for the minimum public retail supply in Russia, need to be replaced due to the market development of trade. To test the hypothesis, the papers by authoritative authors on similar issues were studied, which revealed the use of population indicators based on the number of enterprises as a standard in countries with developed markets. A study of the current methodology for standardizing indicators in Russia was also conducted, which showed its insufficient academic rationalizing. According to the results of the study, it was proposed to change the indicator of the minimum public retail supply standard and use the norm of the number of trade organizations per capita, differentiated by the forms of trade. The recommendations of this paper provide the basis for improving the current legal acts on the regulation of norming retail chains in Russia. This study may be interesting for countries with similar conditions for the development of the retail network (a sparsely populated large part of the country, inaccessibility of some settlements, low state stimulation of retail within unprofitable territories).

Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains

The blockchain technology is very useful in many industries. One current application is on diamond authentication and certification, which is important in many luxury supply chains. In this paper, we explore different consumer utility driven operations models and highlight the values of blockchain technology supported (BTS) platforms for diamond authentication and certification. We build models and analytically examine both the traditional retail network operations (Model R) and the BTS selling platform (Model PL). We further extend the analysis to study the case with the BTS certification platform (Model BCR). We reveal the conditions under which one model outperforms the others. In particular, we note that the shopping convenience utility offered by the traditional retailers is a critical factor determining which model is the best. Finally, for the BTS platform operations, we study the blockchain-technology-based diamond authentication and certification (BDAC) cost and reveal that reducing it is beneficial to all parties in the luxury supply chain.

Environmental Impacts of Reusable Transport Items: A Case Study of Pallet Pooling in a Retailer Supply Chain

Manufacturing, storage, and transportation processes are typically facilitated by pallets, containers, and other reusable transport items (RTIs) designed to guarantee many cycles along a lifespan of several years. As a consequence, both supply and reverse transportation of RTIs need to be managed to avoid stockout along the supply chain and the unsustainable production of new tools from virgin materials. This paper focuses on the business of pallet management by analyzing the transport operations of a pallet pooling network serving a large-scale nationwide retailer. The pooler is responsible for supplying, collecting, and refurbishing pallets. The combination of the pooler’s management strategies with different retailer network configurations results in different pooling scenarios, which are assessed and compared in this paper through a what-if analysis. The logistical and environmental impacts generated by the pallet distribution activities are quantified per each scenario through a tailored software incorporating Geographic Information System (GIS) and routing functionalities. Findings from this analysis suggest how to reduce vehicle distance traveled (vehicles-km) by 65% and pollutant emissions by 60% by combining network infrastructures and pooling management strategies—identifying an empirical best practice for managers of pallet businesses.

Dynamic Processes of Territorial Embeddedness in International Online Fashion Retailing

abstractGlobal retail expansion involves dynamic relations between retailers and variegated institutional, competitive, and consumer-based demands across different spatial scales. Economic geographers have framed these processes through the interrelated concepts of territorial, network, and societal embeddedness of store-based retailers, but with a neglect of online retail transnational corporations, which might enter overseas markets with minimal risk and sunk cost. This research assesses the relevance of concepts of embeddedness in the light of virtual retail networks by assessing how knowledge from the home market mediates any perceived need to localize within host-market consumer cultures and institutions to achieve legitimacy, and, in turn, whether these activities might occur as a virtual or physical process. We undertook extensive case study research within five leading international online fashion retailers headquartered in the UK, involving fifty-five semistructured interviews with chief executives, and with managing, operations, buying, and merchandising directors. Our findings reveal market entry to be dominated by an inward-looking societal embeddedness approach with limited investment in overseas physical infrastructure and personnel, since the management of product ranges and pricing, along with merchandise fulfillment, typically reside in the home market. Yet, with international experience, we conceptualize a staged and currently limited investment in territorial embeddedness through local subsidiary offices critical to realizing network embeddedness with the fashion media and the reorganization of fulfillment within some key host countries and wider supranational regions. Such developments demand increased investment and a decentralization of authority that will, in turn, likely necessitate significant reorganization of these emergent international firms.

Transparency of the enterprise: from theory to practice of evaluation (on the example of retail networks)

Transparency of the enterprise: from theory to practice of evaluation (on the example of retail networks)

Cyberbiosecurity: A New Perspective on Protecting U.S. Food and Agricultural System.

Our national data and infrastructure security issues affecting the “bioeconomy” are evolving rapidly. Simultaneously, the conversation about cyber security of the U.S. food and agricultural system (cyber biosecurity) is incomplete and disjointed. The food and agricultural production sectors influence over 20% of the nation's economy ($6.7T) and 15% of U.S. employment (43.3M jobs). The food and agricultural sectors are immensely diverse and they require advanced technologies and efficiencies that rely on computer technologies, big data, cloud-based data storage, and internet accessibility. There is a critical need to safeguard the cyber biosecurity of our bio economy, but currently protections are minimal and do not broadly exist across the food and agricultural system. Using the food safety management Hazard Analysis Critical Control Point system concept as an introductory point of reference, we identify important features in broad food and agricultural production and food systems: dairy, food animals, row crops, fruits and vegetables, and environmental resources (water). This analysis explores the relevant concepts of cyber biosecurity from food production to the end product user (such as the consumer) and considers the integration of diverse transportation, supplier, and retailer networks. We describe common challenges and unique barriers across these systems and recommend solutions to advance the role of cyber biosecurity in the food and agricultural sectors.

Propozycja podatku lokalizacyjnego od detalicznej działalności handlowej jako sposobu racjonalnego kształtowania sieci usług

W artykule przedstawiono koncepcję podatku w działalności sprzedażowej dla sklepów stacjonarnych, uzależnionego od wielkości powierzchni sprzedażowej i liczby ludności w odległości od miejsca sprzedaży (w skrócie: podatek lokalizacyjny). Założono, że możliwe jest kształtowanie równowagi pod względem popytu (ludność) i podaży (powierzchnia sprzedażowa) w celu uniknięcia monopolizacji rynku przez największe podmioty. Zaproponowano rozwiązanie, że im mniejsza liczba ludności z dostępem do danej lokalizacji sklepu, tym podatek powinien być niższy dla obiektów o małej powierzchni sprzedażowej oraz wyższy dla obiektów o większej powierzchni sprzedażowej. Z kolei przy coraz większej liczbie ludności wysokość podatku byłaby zrównywana dla różnych wartości powierzchni sprzedażowej. Innymi słowy, konstrukcja podatku zakłada preferencje, czyli niższy podatek dla małych sklepów w małych miejscowościach, natomiast w zasadzie ich brak lub bardzo małe oddziaływanie w dużych miastach. Podatek powinien mieć korzystny wpływ na kształtowanie struktury osadniczej poprzez racjonalizację sieci handlowej.