Abstract
Last mile distribution has become one of the most important tasks within the supply chain, which can enable organisations to obtain a competitive advantage within the online retail market. Online grocery shopping is a new method of buying grocery products for household consumption over the Internet and is not yet a fully developed sector in this country, thus creating an opportunity for investigating this phenomenon from a South African context.
The purpose of this study was to investigate the challenges faced in last mile e-commerce grocery delivery from a consumer perspective to determine appropriate improvement strategies that can be recommended for online grocery retailers. The study specifically focussed on: evaluating the most preferred last mile delivery option for consumers’ of online grocery purchases; the factors that determine last mile delivery choices for South African consumers’ of online grocery purchases; the service level expectations of South African consumers’; and whether there is a relationship between last mile logistics alternatives and the decision of consumers’ to purchase groceries online. The population of this study comprised Gauteng grocery shoppers, and data was collected by means of an online questionnaire.
The results of the research indicated that the most preferred method of last mile delivery was attended home / work delivery. Consumers’ further indicated that the most important factor when selecting an online delivery service was the cost of delivery. The research revealed that consumers’ have high service level expectations that, in turn, increase the challenges faced by online grocery retailers to fulfil customer demand successfully. Most respondents indicated that the delivery / collection mode available will affect their final decision to purchase groceries online, which consequently indicated that there was a definite relationship between last mile logistics alternatives and the decision of the consumer to purchase groceries online.
The objectives of this study have been realised and the results add value to the body of knowledge in the challenges faced in last mile grocery delivery from a consumer perspective. This study was concluded with recommendations for future research.
M.Com. (Logistics Management)