IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v47y2017i6p505-517.html
   My bibliography  Save this article

Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case

Author

Listed:
  • Youssef Boulaksil

    (College of Business and Economics, UAE University, Al Ain, United Arab Emirates)

  • M. Jaafar Belkora

    (Agro Juice Processing, Casablanca, Morocco)

Abstract

In many megacities in emerging markets, customers typically buy products for their daily needs from small retailers (nanostores). Distributing these products, such as water, soap, and cooking oil, to the nanostores is a challenging task, mainly because the nanostores have limited cash availability and they make decisions randomly. In this paper, we compare the performance of two commonly used distribution strategies: the presales strategy and the van sales strategy. Our analysis is based on a study we conducted in Casablanca in collaboration with Valencia, a fruit juice manufacturer. The study reveals several insights that are useful to manufacturers who face challenges in distributing goods in large cities in emerging markets.

Suggested Citation

  • Youssef Boulaksil & M. Jaafar Belkora, 2017. "Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case," Interfaces, INFORMS, vol. 47(6), pages 505-517, December.
    • Handle: RePEc:inm:orinte:v:47:y:2017:i:6:p:505-517
    DOI: 10.1287/inte.2017.0914
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/inte.2017.0914
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.2017.0914?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. H. J. (Hans) Quak & M. (René) B. M. de Koster, 2009. "Delivering Goods in Urban Areas: How to Deal with Urban Policy Restrictions and the Environment," Transportation Science, INFORMS, vol. 43(2), pages 211-227, May.
    2. Reinartz, Werner & Dellaert, Benedict & Krafft, Manfred & Kumar, V. & Varadarajan, Rajan, 2011. "Retailing Innovations in a Globalizing Retail Market Environment," Journal of Retailing, Elsevier, vol. 87(S1), pages 53-66.
    3. Wilbur, Kenneth C. & Farris, Paul W., 2014. "Distribution and Market Share," Journal of Retailing, Elsevier, vol. 90(2), pages 154-167.
    4. Lanlan Cao & Daniele Pederzoli, 2013. "International retailers' strategic responses to institutional environment of emerging market: multiple case studies in China," Post-Print hal-00916537, HAL.
    5. Dablanc, Laetitia, 2007. "Goods transport in large European cities: Difficult to organize, difficult to modernize," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(3), pages 280-285, March.
    6. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    7. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    8. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.
    9. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    10. Venkatesan, Rajkumar & Farris, Paul & Guissoni, Leandro A. & Neves, Marcos Fava, 2015. "Consumer Brand Marketing through Full- and Self-Service Channels in an Emerging Economy," Journal of Retailing, Elsevier, vol. 91(4), pages 644-659.
    11. Vishal Gaur & Marshall L. Fisher, 2004. "A Periodic Inventory Routing Problem at a Supermarket Chain," Operations Research, INFORMS, vol. 52(6), pages 813-822, December.
    12. Chopra, Sunil, 2003. "Designing the distribution network in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(2), pages 123-140, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bram Kin & Tomas Ambra & Sara Verlinde & Cathy Macharis, 2018. "Tackling Fragmented Last Mile Deliveries to Nanostores by Utilizing Spare Transportation Capacity—A Simulation Study," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    2. Camilo Andrés Mora-Quiñones & Leopoldo Eduardo Cárdenas-Barrón & Josué C. Velázquez-Martínez & Karla M. Gámez-Pérez, 2021. "The Coexistence of Nanostores within the Retail Landscape: A Spatial Statistical Study for Mexico City," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    3. David Hidalgo-Carvajal & Edgar Gutierrez-Franco & Christopher Mejia-Argueta & Helen Suntura-Escobar, 2023. "Out of the Box: Exploring Cardboard Returnability in Nanostore Supply Chains," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    4. Shin, Youngchul & Lee, Sangyoon & Moon, Ilkyeong, 2020. "Robust multiperiod inventory model considering trade-in program and refurbishment service: Implications to emerging markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    5. Boulaksil, Youssef & Fransoo, Jan C. & Blanco, Edgar E. & Koubida, Sallem, 2019. "Understanding the fragmented demand for transportation – Small traditional retailers in emerging markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 65-81.
    6. Rafael Escamilla & Jan C. Fransoo & Christopher S. Tang, 2021. "Improving Agility, Adaptability, Alignment, Accessibility, and Affordability in Nanostore Supply Chains," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 676-688, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sauvey, Christophe & Melo, Teresa & Correia, Isabel, 2019. "Two-phase heuristics for a multi-period capacitated facility location problem with service-differentiated customers," Technical Reports on Logistics of the Saarland Business School 16, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    2. Rodolfo Mendoza-Gómez & Roger Z. Ríos-Mercado & Karla B. Valenzuela-Ocaña, 2019. "An Efficient Decision-Making Approach for the Planning of Diagnostic Services in a Segmented Healthcare System," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1631-1665, September.
    3. Holzapfel, Andreas & Potoczki, Tobias & Kuhn, Heinrich, 2023. "Designing the breadth and depth of distribution networks in the retail trade," International Journal of Production Economics, Elsevier, vol. 257(C).
    4. Sanjay Dominik Jena & Jean-François Cordeau & Bernard Gendron, 2015. "Dynamic Facility Location with Generalized Modular Capacities," Transportation Science, INFORMS, vol. 49(3), pages 484-499, August.
    5. Schuster Puga, Matías & Tancrez, Jean-Sébastien, 2017. "A heuristic algorithm for solving large location–inventory problems with demand uncertainty," European Journal of Operational Research, Elsevier, vol. 259(2), pages 413-423.
    6. Schuster Puga, Matías & Minner, Stefan & Tancrez, Jean-Sébastien, 2019. "Two-stage supply chain design with safety stock placement decisions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 183-193.
    7. Farahani, Reza Zanjirani & Fallah, Samira & Ruiz, Rubén & Hosseini, Sara & Asgari, Nasrin, 2019. "OR models in urban service facility location: A critical review of applications and future developments," European Journal of Operational Research, Elsevier, vol. 276(1), pages 1-27.
    8. Hirche, Martin & Farris, Paul W. & Greenacre, Luke & Quan, Yiran & Wei, Susan, 2021. "Predicting Under- and Overperforming SKUs within the Distribution–Market Share Relationship," Journal of Retailing, Elsevier, vol. 97(4), pages 697-714.
    9. Jakubovskis, Aldis, 2017. "Flexible production resources and capacity utilization rates: A robust optimization perspective," International Journal of Production Economics, Elsevier, vol. 189(C), pages 77-85.
    10. Jakubovskis, Aldis, 2017. "Strategic facility location, capacity acquisition, and technology choice decisions under demand uncertainty: Robust vs. non-robust optimization approaches," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1095-1104.
    11. Patil, Ashutosh & Borle, Sharad & Singh, Siddharth, 2023. "An empirical investigation of unique traits of retailing industry in emerging economies: The perspective of consumer-packaged goods manufacturers," Journal of Business Research, Elsevier, vol. 154(C).
    12. Ashu Kedia & Diana Kusumastuti & Alan Nicholson, 2019. "Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach," Sustainability, MDPI, vol. 11(22), pages 1-23, November.
    13. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    14. Kress, Dominik & Pesch, Erwin, 2012. "Sequential competitive location on networks," European Journal of Operational Research, Elsevier, vol. 217(3), pages 483-499.
    15. Mestre, Ana Maria & Oliveira, Mónica Duarte & Barbosa-Póvoa, Ana Paula, 2015. "Location–allocation approaches for hospital network planning under uncertainty," European Journal of Operational Research, Elsevier, vol. 240(3), pages 791-806.
    16. Bieniek, Milena, 2015. "A note on the facility location problem with stochastic demands," Omega, Elsevier, vol. 55(C), pages 53-60.
    17. Güden, Hüseyin & Süral, Haldun, 2014. "Locating mobile facilities in railway construction management," Omega, Elsevier, vol. 45(C), pages 71-79.
    18. Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & Zambaldi, Felipe & Neves, Marcos Fava, 2021. "Distribution effectiveness through full- and self-service channels under economic fluctuations in an emerging market," Journal of Retailing, Elsevier, vol. 97(4), pages 545-560.
    19. Toso, Eli Angela V. & Alem, Douglas, 2014. "Effective location models for sorting recyclables in public management," European Journal of Operational Research, Elsevier, vol. 234(3), pages 839-860.
    20. Sanjay Jena & Jean-François Cordeau & Bernard Gendron, 2015. "Modeling and solving a logging camp location problem," Annals of Operations Research, Springer, vol. 232(1), pages 151-177, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:47:y:2017:i:6:p:505-517. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.