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1、Chapter1STRATEGIESANDCHALLENGESOFINTERNET¤GROCERYRETAILINGLOGISTICSTomHaysUnitedStatesArmyHuntsville,Alabamatomhays90@hotmail.comP³narKeskinocakSchoolofIndustrialandSystemsEngineeringGeorgiaInstituteofTechnologyAtlanta,Georgiapinar@isye.gatech.eduVirginiaMalcomedeL¶opezPegasusGroupInc
2、.SanJuan,PuertoRicovirginia@pegasuspr.netAbstractOneofthemostchallengingsectorsoftheretailmarkettodayisthegrocerysegment,speci¯callye-grocers.Sincethemid-1990'smultiplecompanieshaveenteredthee-grocermarket.Fewhavesurvived.Whatisitaboute-grocersthatmakethemfail?Whatmakesthemsucceed?Wha
3、tcanwelearnfromyesterday'se-grocersthatwillenablethenewplayerstostaya°oatorevenbecalledthegreatestthingsinceslicedbread?"Giventhattheindustryisstillintransition,"itisdi±cultto¯ndde¯niteanswerstothesequestions.Withthegoalofgainingusefulinsightsontheseissues,inthispaperweanalyzee-groc
4、ers,past¤ForthcominginApplicationsofSupplyChainManagementandE-CommerceResearchinIndustry,J.Geunes,E.Ak»cal³,P.M.Pardalos,H.E.Romeijn,andZ.J.Shen(editors),KluwerAcademicPublishers,Dordrecht,TheNetherlands,2004.12andpresent,discussdi®erentbusinessmodelsemployed,aswellasorderful¯llmentan
5、ddeliverystrategies.Amongthethreealternativebusi-nessmodels,namely,pure-playonline,brick-and-mortargoingonline,andpartnershipbetweenbrick-and-mortarandpure-playonline,weob-servethatthelattermodelhasahighersuccesspotentialbycombiningthestrengthsandminimizingtheweaknessesoftheformertwom
6、odels.Wediscussorderful¯llmentmethodsusedbycurrentanddefuncte-grocers,speci¯cally,themega-warehouse,in-storeorderful¯llment,andthehybridstore-warehouse,andprovideanoverviewoftheirrelativead-vantagesanddisadvantages.Wealsodiscussalternativeorderdeliverymethods,including,attendedandunat
7、tendedhomedelivery,in-storepickup,andthird-partypickuplocations.Weconcludewithadiscus-siononlessonslearnedfromfailureandsuccessstoriesofe-grocers,asummaryofcurrenttrendsanddirections,andfutureopportunities.1.IntroductionGrowinginterestbyconsumerstopointandclicktheirwaythroughnearlyall
8、aspec
