Grocery retail operations and automotive logistics: a functional cross-industry comparison

The purpose of this paper is to identify and describe similarities between logistics structures and mid-term planning problems in the grocery retail and automotive industries in a specific internal section of their respective supply chains.

The benchmarking approach is used as a framework for this paper. It is based on insights resulting from several joint projects with grocery retailers and automobile producers. A particular focus of the research was participating in an exchange of ideas and experience between logistics managers in both industry sectors.

The authors have identified parallels when comparing the internal retail supply chain of the grocery retail industry, which consists of distribution centres, transportation and in-store logistics, with the internal logistics network in the automotive industry, which consists of logistics supermarkets, transportation and work zone operations at the assembly line. Strong similarities have been found for three planning problems related to tactical planning tasks: assigning products and parts to delivery modes, selecting packaging units and loading carriers, and determining delivery cycles. In comparison to retailing, there is a clearer trend in the automotive industry to plan line-back and align processes with the operator's requirements at the assembly line.

For logisticians in grocery retailing and the automotive industry, this paper provides relevant input for functional benchmarking initiatives and offers an inspirational view beyond the horizon.

This paper is the first to focus on similarities in logistics network structures and planning tasks between the two industries from the viewpoint of grocery retailing.