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Logistics drivers for shelf stacking in grocery retail stores: Potential for efficiency improvement

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  • van Zelst, Susan
  • van Donselaar, Karel
  • van Woensel, Tom
  • Broekmeulen, Rob
  • Fransoo, Jan

Abstract

In retail stores, handling of products typically forms the largest share of the operational costs. The handling activities are mainly driven by the shelf stacking process. While the impact of the handling costs on the profitability of a store is substantial, there are no models available of the different drivers influencing store handling. In this paper, a study of the shelf stacking process is presented. First, a conceptual model based on warehouse operations is derived. It is shown that stacking costs are non-linear with the number of consumer units stacked. Secondly, by means of a motion and time study, data has been collected for dry groceries in four stores of two different European retail companies. Using regression, the developed model clearly demonstrates the impact of the most important drivers for stacking efficiency: case pack (CP) size, number of CPs stacked simultaneously, the filling regime and the working place of the employees. Efficiency gains of 8-49% by changing the driver parameter value are identified. Based on the presented insights both retail companies have already decided to structurally change their current operations.

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  • van Zelst, Susan & van Donselaar, Karel & van Woensel, Tom & Broekmeulen, Rob & Fransoo, Jan, 2009. "Logistics drivers for shelf stacking in grocery retail stores: Potential for efficiency improvement," International Journal of Production Economics, Elsevier, vol. 121(2), pages 620-632, October.
    • Handle: RePEc:eee:proeco:v:121:y:2009:i:2:p:620-632
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    5. Aleksandar Erceg & Volker Trauzettel, 2016. "Packaging In Retail Supply Chains," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 16, pages 73-81.
    6. Masoud Rabbani & Navid Salmanzadeh-Meydani & Amir Farshbaf-Geranmayeh & Vahed Fadakar-Gabalou, 2018. "Profit maximizing through 3D shelf space allocation of 2D display orientation items with variable heights of the shelves," OPSEARCH, Springer;Operational Research Society of India, vol. 55(2), pages 337-360, June.
    7. Mümin Kurtuluş & R. Canan Savaskan & Chunlin Wang, 2020. "Drivers and Implications of Direct‐Store‐Delivery in Distribution Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2621-2636, November.
    8. Sternbeck, Michael G. & Kuhn, Heinrich, 2014. "An integrative approach to determine store delivery patterns in grocery retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 205-224.
    9. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
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    13. Alexander Hübner & Kai Schaal, 2017. "Effect of replenishment and backroom on retail shelf-space planning," Business Research, Springer;German Academic Association for Business Research, vol. 10(1), pages 123-156, June.
    14. A Curşeu & T van Woensel & J Fransoo & K van Donselaar & R Broekmeulen, 2009. "Modelling handling operations in grocery retail stores: an empirical analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(2), pages 200-214, February.
    15. Thomas Wensing & Michael G. Sternbeck & Heinrich Kuhn, 2018. "Optimizing case-pack sizes in the bricks-and-mortar retail trade," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(4), pages 913-944, October.
    16. Holzapfel, Andreas & Potoczki, Tobias & Kuhn, Heinrich, 2023. "Designing the breadth and depth of distribution networks in the retail trade," International Journal of Production Economics, Elsevier, vol. 257(C).
    17. Hübner, Alexander H. & Kuhn, Heinrich, 2012. "Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management," Omega, Elsevier, vol. 40(2), pages 199-209, April.
    18. Madison J. Bixler & Dorothée Honhon, 2021. "Exploring the Connections between Backrooms, Inventory Record Inaccuracies, and Waste," Sustainability, MDPI, vol. 13(17), pages 1-12, August.
    19. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    20. Ehrenthal, J.C.F. & Honhon, D. & Van Woensel, T., 2014. "Demand seasonality in retail inventory management," European Journal of Operational Research, Elsevier, vol. 238(2), pages 527-539.
    21. Martins, Sara & Ostermeier, Manuel & Amorim, Pedro & Hübner, Alexander & Almada-Lobo, Bernardo, 2019. "Product-oriented time window assignment for a multi-compartment vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 276(3), pages 893-909.
    22. Holzapfel, Andreas & Kuhn, Heinrich & Sternbeck, Michael G., 2018. "Product allocation to different types of distribution center in retail logistics networks," European Journal of Operational Research, Elsevier, vol. 264(3), pages 948-966.
    23. Huber, Jakob & Stuckenschmidt, Heiner, 2021. "Intraday shelf replenishment decision support for perishable goods," International Journal of Production Economics, Elsevier, vol. 231(C).
    24. Jabir Ali & Ashwin Chandra & Tabassum Ali, 2017. "Self-started versus Family Inherited Businesses: A Comparison of Managing Unorganized Food Grocery Retail Stores in an Emerging Economy," Business Perspectives and Research, , vol. 5(1), pages 24-35, January.

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