A framework for designing backroom areas in grocery stores

Abstract

Purpose-The design of retail backroom storage areas has great impact on in-store operations, customer service level and on store life-cycle costs. Moreover, backroom storage in modern retail grocery stores is critical to several functions, such as acting as a buffer against strong demand lifts yielded by an ever-increasing promotional activity, stocking seasonal peak demand and accommodating e-commerce activities. The purpose of this paper is to propose a framework to design retail backroom storage area. Furthermore, the authors aim to draw attention to the lack of literature on this topic, while clarifying the relationship between this promising research stream and the considerable body of research regarding the design and operations of conventional warehouses, as well as retail in-store operations. Design/methodology/approach-The key literature on backrooms, grocery retail, in-store operations, warehouse design and operations was reviewed. This allowed an understanding of the gap in the literature regarding the design of backrooms. Moreover, a case study methodological approach was conducted in a Portuguese retailer to extend the literature review. Findings-Despite having functions similar to conventional warehouses, backroom storage facilities have particularities that deserve a distinct analysis. Thus, the authors stress these differences and demonstrate how they influence the development of a novel backroom design framework. Originality/value-This paper fills a gap by proposing a framework to design backroom areas. Furthermore, this research may help practitioners to better design backroom areas, since this process currently lacks a formal and standardized procedure.

Improving distribution and business performance through lean warehousing

“…Since companies started to recognize that competitive advantage in logistics can be attained through improved efficiencies, waste reduction practices were adopted in the field of logistics (Douglas et al, 2015;Salhieh et al, 2018) and distribution function (Villarreal et al, 2016). The importance of adopting lean principles for warehousing is that any performance improvements in the warehouse operations will ultimately be reflected in the performance of distributors, and retailers (Pires et al, 2017;Hübner et al, 2016).…”

“…Hence, the following two hypotheses are developed: Literature acknowledges the role of distribution in supporting other functions in the organization and achieving higher customer satisfaction (Jaca et al 2012;Rexhausen et al, 2012;Towers and Xu, 2016;Villarreal et al, 2009;Pires et al, 2017;Shah and Khanzode, 2017). A well-coordinated distribution channel enables firms to deliver goods and services to end customers in a timely, efficient and effective way (Jaca et al 2012;Towers and Xu, 2016;Appelqvist et al, 2016;Hübner et al, 2016;Satyam et al, 2017).…”

“…However, coordinating warehouse operations from a lean perspective have been given less attention than other logistics functions (Gu et al, 2010;Bozer, 2012;Sharma and Shah, 2015;Shah and Khanzode, 2017). The importance of studying lean in warehousing and distribution operations is that any performance improvement in the distribution operations will ultimately be reflected in the logistics performance of downstream retailers (Pires et al, 2017;Hübner et al, 2016) and the whole distribution channel (Satyam et al, 2017).…”

Analisis Tingkat Utilisasi Gudang (Studi Kasus Di Gudang Perum Bulog)

“…Untuk mengoptimalkan penggunaan gudang tersebut dan menghindari adanya biaya perawatan rutin yang sia-sia maka diharapkan dapat melakukan upaya-upaya untuk memasarkan gudang di wilayah tersebut baik melalui iklan di media massa atau melalui internet. Penelitian yang dilakukan olehPires et al (2017) untuk mengusulkan kerangka kerja untuk merancang area penyimpanan ruang…”

Effect of replenishment and backroom on retail shelf-space planning

“…Additionally, the costs associated with in-store replenishment are significant, because in-store logistics costs amount to up to 50% of total retail supply chain costs (Kotzab and Teller 2005;Broekmeulen et al 2006;Reiner et al 2013;Kuhn and Sternbeck 2013). However, the options for changing replenishment frequencies are subject to the availability of backroom inventory for intermediate storage (Eroglu et al 2013;Pires et al 2016) and the degree of freedom to choose different delivery frequencies (Sternbeck and Kuhn 2014). Besides product margins and demand effects, the shelf-space planner should therefore also consider options for arranging items on the shelf, in-store replenishment frequencies and costs, and the availability of a backroom for replenishment.…”