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Unattended Home Delivery of Food - Is It Possible to Accomplish with a New Delivery Solution?

Frank, Josefin LU and Albertz, Emma LU (2017) MTT920 20171
Packaging Logistics
Abstract
The online market for groceries is continuously growing. Many of the online grocery purchases are home delivered, and the model that is currently the most commonly used allows the customer to pick a delivery time slot. This means that the delivery routes must be adapted according to time windows, which results in inefficient routes, a lot of half-empty vehicles, and hence in costly deliveries for the logistics providers. Furthermore, time windows require the customer to be home during the delivery time slot, which is undesirable to many customers. In several customer surveys, customers state that they would rather not have to be home to receive their groceries.

This master thesis has been conducted in cooperation with Nowaste... (More)
The online market for groceries is continuously growing. Many of the online grocery purchases are home delivered, and the model that is currently the most commonly used allows the customer to pick a delivery time slot. This means that the delivery routes must be adapted according to time windows, which results in inefficient routes, a lot of half-empty vehicles, and hence in costly deliveries for the logistics providers. Furthermore, time windows require the customer to be home during the delivery time slot, which is undesirable to many customers. In several customer surveys, customers state that they would rather not have to be home to receive their groceries.

This master thesis has been conducted in cooperation with Nowaste Logistics, a young logistics company that provides high-tech solutions. Given the current situation in the market, and the company’s willingness to start providing a competitive logistics offer for e-groceries, this master thesis aims to develop a new delivery concept. This, by investigating different options, existing and upcoming, and requirements from a logistics, food and customer perspective. Additionally, the required technology and the customer preferences are examined.

In order to answer the research questions, a literature study and a case study have been carried out. The case study includes interviews and observations at the case company, logistics providers, online grocers, and other organizations within the food industry. Six critical success factors to consider when developing a new home delivery solution have been established:

1. Be able to perform deliveries of larger volumes, meaning, more delivered orders per route.
2. Enable unattended home delivery.
3. Be independent, available for all logistics providers to use.
4. Keep the cold chain unbroken until the customer comes home.
5. Meet the demands of both customers and logistics providers in terms of price and cost.
6. Keep the delivery safe from both theft and contamination.

A new home delivery solution, that is assessed to fulfill the critical success factors, is recommended to Nowaste. This, together with further recommendations for a successful implementation and future research within the examined area. (Less)
Abstract (Swedish)
Matvaruhandeln på nätet växer och en stor del av matvaruinköpen online levereras med hemleverans. Den hemleveransmodell som idag används i störst utsträckning låter kunderna välja ett tidsfönster för när de vill ha sin leverans. Det innebär att rutterna måste anpassas efter olika tidsfönster, vilket resulterar i ineffektivitet och låg fyllnadsgrad i lastbilarna. Detta, i sin tur, gör att leveranserna blir kostsamma. Dagens hemleveranser kräver att kunden är hemma vid leverans, vilket av många kunder anses vara en nackdel. I flertalet kundundersökningar svarar majoriteten av kunderna att de helst vill slippa vara hemma för att ta emot sin leverans.

Detta examensarbete har genomförts tillsammans med Nowaste Logistics, ett ungt... (More)
Matvaruhandeln på nätet växer och en stor del av matvaruinköpen online levereras med hemleverans. Den hemleveransmodell som idag används i störst utsträckning låter kunderna välja ett tidsfönster för när de vill ha sin leverans. Det innebär att rutterna måste anpassas efter olika tidsfönster, vilket resulterar i ineffektivitet och låg fyllnadsgrad i lastbilarna. Detta, i sin tur, gör att leveranserna blir kostsamma. Dagens hemleveranser kräver att kunden är hemma vid leverans, vilket av många kunder anses vara en nackdel. I flertalet kundundersökningar svarar majoriteten av kunderna att de helst vill slippa vara hemma för att ta emot sin leverans.

Detta examensarbete har genomförts tillsammans med Nowaste Logistics, ett ungt logistikbolag som tillhandahåller högteknologiska lösningar. Då marknaden har sett en stor tillväxt och företaget har ambitionen att erbjuda en konkurrenskraftig logistiklösning för mat som säljs på nätet, fokuserar detta examensarbete på att ta fram ett nytt leveranskoncept för blandade matkassar. Detta genom att undersöka både befintliga och framtida leveransalternativ, samt beakta de krav som finns ur ett logistiskt, matvaru- och kundperspektiv. Utöver detta undersöks även vilken teknologi som krävs, samt kundernas preferenser för matvaruleveranser.

För att besvara studiens frågeställningar har en litteraturstudie och en fallstudie genomförts. Fallstudien innefattar intervjuer och observationer gjorda hos Nowaste, externa logistikleverantörer, matvarubutiker online och andra organisationer inom livsmedelsindustrin. Sex kritiska framgångsfaktorer att beakta vid utvecklandet av en ny hemleveranslösning har tagits fram:

1. Möjliggöra leveranser av större volymer, eller fler levererade order, per rutt.
2. Möjliggöra obevakad hemleverans.
3. Vara oberoende och tillgänglig för alla logistikleverantörer.
4. Bibehålla en intakt kylkedja till kunden kommer hem.
5. Möta både kundernas och logistikleverantörernas krav på pris respektive kostnad.
6. Skydda varorna från stöld och kontaminering.

I detta examensarbete rekommenderas Nowaste en ny hemleveranslösning som bedöms uppfylla framgångsfaktorerna. Detta, tillsammans med rekommendationer för en framgångsrik implementation och framtida forskning inom ämnet. (Less)
Please use this url to cite or link to this publication:
author
Frank, Josefin LU and Albertz, Emma LU
supervisor
organization
course
MTT920 20171
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Home delivery, last-mile logistics, unattended delivery, e-groceries and case study
language
English
id
8917221
date added to LUP
2017-06-21 08:23:41
date last changed
2017-06-21 08:23:41
@misc{8917221,
  abstract     = {The online market for groceries is continuously growing. Many of the online grocery purchases are home delivered, and the model that is currently the most commonly used allows the customer to pick a delivery time slot. This means that the delivery routes must be adapted according to time windows, which results in inefficient routes, a lot of half-empty vehicles, and hence in costly deliveries for the logistics providers. Furthermore, time windows require the customer to be home during the delivery time slot, which is undesirable to many customers. In several customer surveys, customers state that they would rather not have to be home to receive their groceries. 

This master thesis has been conducted in cooperation with Nowaste Logistics, a young logistics company that provides high-tech solutions. Given the current situation in the market, and the company’s willingness to start providing a competitive logistics offer for e-groceries, this master thesis aims to develop a new delivery concept. This, by investigating different options, existing and upcoming, and requirements from a logistics, food and customer perspective. Additionally, the required technology and the customer preferences are examined. 

In order to answer the research questions, a literature study and a case study have been carried out. The case study includes interviews and observations at the case company, logistics providers, online grocers, and other organizations within the food industry. Six critical success factors to consider when developing a new home delivery solution have been established: 

1.	Be able to perform deliveries of larger volumes, meaning, more delivered orders per route. 
2.	Enable unattended home delivery. 
3.	Be independent, available for all logistics providers to use. 
4.	Keep the cold chain unbroken until the customer comes home.
5.	Meet the demands of both customers and logistics providers in terms of price and cost. 
6.	Keep the delivery safe from both theft and contamination.

A new home delivery solution, that is assessed to fulfill the critical success factors, is recommended to Nowaste. This, together with further recommendations for a successful implementation and future research within the examined area.},
  author       = {Frank, Josefin and Albertz, Emma},
  keyword      = {Home delivery,last-mile logistics,unattended delivery,e-groceries and case study},
  language     = {eng},
  note         = {Student Paper},
  title        = {Unattended Home Delivery of Food - Is It Possible to Accomplish with a New Delivery Solution?},
  year         = {2017},
}