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Distribution network design: A case study of grocery retailer expansion
Linnaeus University, School of Business and Economics, Department of Management Accounting and Logistics.
Linnaeus University, School of Business and Economics, Department of Management Accounting and Logistics.
Linnaeus University, School of Business and Economics, Department of Management Accounting and Logistics.
Linnaeus University, School of Business and Economics, Department of Management Accounting and Logistics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Background: The internationalization of the retail industry has been treated by the authors in the literature as one of the most significant trend that influences the operations of a retailer. The impact of the internationalization can be seen as a need of reconsideration of the logistics practice and the distribution network. Grocery retailers that expand on new markets need a detailed consideration of the factors that influence the process of distribution network design with focus on the number and location of facilities/distribution centers, as well as on the vehicles routing and the consolidation of the deliveries from the distribution centers to the stores.

Purpose: This paper is explanatory and aims to illustrate the impact of certain factors concerning the decisions on the distribution network design when a grocery retailer seeks to expand on new markets.

Methodology: The thesis is a case study with quantitative and qualitative research approaches obtained by in-depth interview. Furthermore, the authors use positivisim and the whole workflow of thesis can be designed as deductive. The sampling selection is non-probability that is combined with pattern matching as the method of data analysis.

Conclusion: A model for a distribution network design that can be used by grocery retailers that seeks to expand on new markets is developed. The model is consisted of four steps: a qualitative analysis of factors, determination of a precise number of distribution centers on each market; determination of a precise location of the distribution center on each market, and determination of the vehicle routing and the consolidation of the deliveries. The model is based on the following factors: strategic factors, macroeconomic factors, regional (forecasted) demand and number of stores need to be served and economy of scale, competitive environment, infrastructure, customer response and local presence and sourcing decision. 

Place, publisher, year, edition, pages
2017.
Keyword [en]
Distribution network design, location, facility, distribution center, transportation, factors, new markets, retail
National Category
Business Administration
Identifiers
URN: urn:nbn:se:lnu:diva-64676OAI: oai:DiVA.org:lnu-64676DiVA: diva2:1104805
Subject / course
Business Administration - Other
Educational program
Business Process and Supply Chain Management, Master Programme, 60 credits
Examiners
Available from: 2017-06-07 Created: 2017-06-01 Last updated: 2017-06-07Bibliographically approved

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Distribution network design: A case study of grocery retailer expansion(61 kB)1 downloads
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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  • text
  • asciidoc
  • rtf