Abstract

Background: The Swedish grocery retail sector transforms at an accelerating pace since customers seek change while regulators are establishing policies and digital innovation. The rise of sustainability as an important issue comes from the consumer value changes and Sweden's climate neutrality goals. The essential demand for sustainability now exists because hybrid distribution systems deliver emission reduction, cost minimization and improved inventory management. This study will explore the hybrid supply chains and the relationship between cost drivers, environmental sustainability and social responsibility. 

Purpose: This thesis investigates whether and how the hybrid supply chain models impact cost minimization, environmental initiatives and social responsibility in the Swedish grocery retail sector. The thesis goal is to determine effective and new trade-offs in the hybrid supply chain that balance economic, environmental and social outcomes. 

Method: The thesis uses a qualitative approach with a focus on a literature search. This search was conducted to explore the topic more and academic databases were used to explore the research topic. The empirical findings are based on seven semi-structured interviews with both floor workers and workers at an executive level. 

Conclusion: Combining a centralized supply chain with decentralized distribution reduces emissions and drives cost savings, controlling retailers and alerting them to shifts in the market. Inventory strategies match product characteristics by allocating stock based methods to high volume goods and order based systems to items with limited shelf life. Environmental standards such as sustainable packaging, waste minimization and renewable energy use are integrated into the operations. The research confirms that following the Triple Bottom Line Framework (TBL) pillars, Economic success, Environmental sustainability, and social responsibility are connected and intertwined within a hybrid supply chain model.