Design/methodology/approach - The reasons is based around a single case study of a UK grocery retailer, which has adopted FGP. A range of data sources has been collected during a project with the retailer. Techniques used include process mapping, interviews,workshops and company presentations.
Findings - Strategically, the introduction of FGP has provided economies for the retailer strengthening its position in the market. Four main transport management techniques have been deployed to achieve this, generating reductions in transport and inventory costs while improving customer service levels. There are also some issues that need addressing, in relation to the need for a single point of control, who manages this point and the technological capabilities of transport providers.