Exploring grocery small- and medium-sized enterprise owners’ perceptions of shared outsourced transportation as a strategy for reducing delivery costs and improving competitiveness

Abstract

Background: Grocery small and medium-sized enterprises (SMEs) operate in highly competitive retail environments where transportation and delivery costs constitute a substantial proportion of operating expenses. Limited economies of scale, increasing fuel prices and frequent replenishment requirements place significant pressure on logistics operations, reducing SMEs’ ability to compete with larger retailers that possess more sophisticated distribution networks. Shared outsourced transportation has emerged as a potential strategy to improve logistics efficiency and reduce delivery costs. However, limited qualitative evidence exists on how grocery SME owners perceive the value and practicality of shared transportation within their operational contexts.
Objectives: This study explored grocery SME owners’ perceptions of shared outsourced transportation as a strategic approach to reducing delivery costs and improving competitiveness in the grocery retail sector.
Method: An interpretivist research philosophy and qualitative exploratory design were adopted. Data were collected through semi-structured interviews with 12 grocery SME owners and senior managers responsible for transportation and logistics decisions. The data were analysed using thematic analysis to identify recurring patterns and perceptions regarding shared transportation practices.
Results: Four themes emerged: Perceived cost-saving benefits of shared outsourced transportation, improved operational flexibility and risk-sharing, coordination and service reliability challenges, and the perceived influence of shared transportation on competitiveness and market positioning.
Conclusion: Participants perceived shared outsourced transportation as a viable strategy for reducing delivery costs and improving operational efficiency. These findings represent participants’ experiences and perceptions rather than objectively measured organisational performance.
Contribution: The study contributes qualitative insights into collaborative transportation practices and demonstrates how shared outsourced transportation may strengthen the competitiveness of grocery SMEs.