July 01, 2020

The innovative omni-channel supply chain models that have reshaped many parts of the retail industry continue to evolve in response to market changes. One of these changes is the increasing demand for grocery products ordered online, a trend reinforced by the COVID-19 pandemic that imposed restrictions on the use of physical stores for grocery shopping.

A challenge for traditional grocery retailers is how to develop omni-channel supply chains that support both online and offline buying channels and deliver seamless customer service profitably.

To explore this challenge, Eva Ponce and Sergio Caballero built a supply chain model as part of a project sponsored by one of the world’s largest food retail groups. The model shows that omni-channel can deliver improved performance and reduced costs in the grocery business. The work also highlights
further research opportunities.