Delivery mode planning for distribution to brick-and-mortar retail stores: discussion and literature review

Abstract

In the retail industry, there are multiple products flowing from different distribution centers to brick-and-mortar stores with distinct characteristics. This industry has been suffering radical changes along the years and new market dynamics are making distribution more and more challenging. Consequently, there is a pressure to reduce shipment sizes and increase the delivery frequency. In such a context, defining the most efficient way to supply each store is a critical task. However, the supply chain planning decision that tackles this type of problem, delivery mode planning, is not well defined in the literature. This paper proposes a definition for delivery mode planning and analyzes multiple ways retailers can efficiently supply their brick-and-mortar stores from their distribution centers. The literature addressing this planning problem is reviewed and the main interdependencies with other supply chain planning decisions are discussed. © 2017 Springer Science+Business Media New York