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Using Customer-related Data to Enhance E-grocery Home Delivery

Shenle Pan (), Vaggelis Giannikas, Yufei Han, Etta Grover-Silva () and Bin Qiao ()
Additional contact information
Shenle Pan: CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique
Vaggelis Giannikas: Institute for Manufacturing - CAM - University of Cambridge [UK]
Yufei Han: CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique
Etta Grover-Silva: PERSEE - Centre Procédés, Énergies Renouvelables, Systèmes Énergétiques - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University
Bin Qiao: CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique

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Abstract: Purpose: The development of e-grocery allows people to purchase food online and benefit from home delivery service. Nevertheless, a high rate of failed deliveries due to the customer's absence causes significant loss of logistics efficiency, especially for perishable food. This paper proposes an innovative approach to use customer-related data to optimize e-grocery home delivery. The approach estimates the absence probability of a customer by mining electricity consumption data, in order to improve the success rate of delivery and optimize transportation. Design/methodology/approach: The methodological approach consists of two stages: a data mining stage that estimates absence probabilities, and an optimization stage to optimize transportation. Findings: Computational experiments reveal that the proposed approach could reduce the total travel distance by 3% to 20%, and theoretically increase the success rate of first-round delivery approximately by18%-26%. Research limitations/implications: The proposed approach combines two attractive research streams on data mining and transportation planning to provide a solution for e-commerce logistics. Practical implications: This study gives an insight to e-grocery retailers and carriers on how to use customer-related data to improve home delivery effectiveness and efficiency. Social implications: The proposed approach can be used to reduce environmental footprint generated by freight distribution in a city, and to improve customers' experience on online shopping. Originality/value: Being an experimental study, this work demonstrates the effectiveness of data-driven innovative solutions to e-grocery home delivery problem. The paper provides also a methodological approach to this line of research.

Keywords: Food Delivery; City Logistics; E-commerce; Data Mining; Freight Transportation. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tre
Date: 2017-02-22
Note: View the original document on HAL open archive server: https://hal-mines-paristech.archives-ouvertes.fr/hal-01482901
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Published in Industrial Management and Data Systems, Emerald, 2017, 117 (9), pp.1917-1933. ⟨10.1108/IMDS-10-2016-0432⟩

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