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Using EPP Boxes in a Dark Store: A New Approach to Simplify Food Retail E-Commerce Deliveries

Author

Listed:
  • Pintado Eduardo

    (Instituto Superior de Contabilidade e Administração do Instituto Politécnico do Porto, Porto, Portugal)

  • de Oliveira Lia Coelho

    (INESC TEC, Porto, Portugal, and Polytechnic Institute of Viana do Castelo, Portugal)

  • Garcia Jorge Esparteiro

    (ADiT-LAB, Polytechnic Institute Viana do Castelo and INESC TEC, Porto, Portugal)

Abstract

Background: E-commerce has emerged as a good response to the pandemic of COVID-19. However, the costs of providing a service, which includes a driver and a vehicle, in a regular vehicle that can transport goods that need positive cold (0° to 5°C) are very high. Objectives: This paper aims to investigate how a big Portuguese retailer company can reduce its dependence on refrigerated vehicles, simplifying operations and reducing the costs of transporting positive and negative cold food. Methods/Approach: This research was carried out in a food retailer Portuguese company, more precisely in a Dark Store dedicated to the online channel. The study was developed based on the AS-IS/TO-BE process analysis methodology, starting with the analysis of the current situation, giving rise to the so-called AS-IS model. Results: It was possible to reduce costs associated with transporting positive cold goods. As a result, there are 30% fewer costs associated with order transportation. With an additional 10% in space optimization with the gain of space within the galley of each vehicle. Conclusions: The costs of transporting positive and negative cold foods were decreased, and substituting vehicles with room temperature transport reduced the need for refrigerated vehicles.

Suggested Citation

  • Pintado Eduardo & de Oliveira Lia Coelho & Garcia Jorge Esparteiro, 2022. "Using EPP Boxes in a Dark Store: A New Approach to Simplify Food Retail E-Commerce Deliveries," Business Systems Research, Sciendo, vol. 13(3), pages 130-143, October.
    • Handle: RePEc:bit:bsrysr:v:13:y:2022:i:3:p:130-143:n:11
    DOI: 10.2478/bsrj-2022-0029
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    References listed on IDEAS

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    1. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
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    More about this item

    Keywords

    E-commerce; Transportation; Sustainability; Dark Store; Food Retail; Case study;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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