Challenges and Opportunities in 'Last Mile' Logistics for On-Line Food Retail

Conventional approaches to logistics for food retail continue to be challenged by the rapid growth of on-line food retail. At the same time, 'last mile' logistics optimization for on-line retail also face challenges as changing consumer expectations, habits and purchasing patterns intersect with the increasing density of urban environments. Numerous considerations are already in play around servicing of last mile logistics for on-line food retail including whether it is home delivery or pick-up; delivery is attended or not; and, whether the service is managed in-house or out-sourced to third party providers. Selecting the appropriate distribution and delivery channel is challenging with choices intimately related to the variety and price of products offered for sale (premium or discount) as well as the delivery times promoted to prospective customers. Beyond these pragmatic considerations, are also changing consumer expectations and preferences, innovations in new technology, provenance & traceability, seasonality and emerging reverse logistics issues linked to 'green' carbon miles considerations. This paper systematically explores these issues emerging in online food retail logistics.