Optimization of Transportation Costs in the Retail Grocery Supply Chain

This research investigated transportation cost optimization in a U.S. grocery retail chain experiencing high logistics expenses due to dependence on distributor-controlled delivery systems. Aiming to achieve cost-efficiency, the study developed and evaluated two strategic approaches. Both approaches achieved significant reductions in annual costs over the existing logistics model and supported distinct operational priorities: the leased-truck approach offered immediate cost control and route flexibility, while the hub-centric approach emphasized efficient inventory handling and scalability to meet future demand.