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Purpose
Demand forecast methodologies have been studied extensively to improve operations in e-commerce. However, every forecast inevitably contains errors, and this may result in a disproportionate impact on operations, particularly in the dynamic nature of fulfilling orders in e-commerce. This paper aims to quantify the impact that forecast error in order demand has on order picking, the most costly and complex operations in e-order fulfilment, in order to enhance the application of the demand forecast in an e-fulfilment centre.
Design/methodology/approach
The paper presents a Gaussian regression based mathematical method that translates the error of forecast accuracy in order demand to the performance fluctuations in e-order fulfilment. In addition, the impact under distinct order picking methodologies, namely order batching and wave picking. As described.
Findings
A structured model is developed to evaluate the impact of demand forecast error in order picking performance. The findings in terms of global results and local distribution have important implications for organizational decision-making in both long-term strategic planning and short-term daily workforce planning.
Originality/value
Earlier research examined demand forecasting methodologies in warehouse operations. And order picking and examining the impact of error in demand forecasting on order picking operations has been identified as a research gap. This paper contributes to closing this research gap by presenting a mathematical model that quantifies impact of demand forecast error into fluctuations in order picking performance.
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Jingran Zhang, Sevilay Onal, Rohit Das, Amanda Helminsky and Sanchoy Das
Fast fulfilment is a key performance measure in online retail, and some retailers have achieved faster times by adopting new designs in their order fulfilment infrastructure. This…
Abstract
Purpose
Fast fulfilment is a key performance measure in online retail, and some retailers have achieved faster times by adopting new designs in their order fulfilment infrastructure. This research empirically confirms and quantifies the fulfilment time advantage that Amazon has achieved, relative to other online retailers. The purpose of this paper is to investigate three research questions: what is the overall mean fulfilment time difference between the new logistics designs of Amazon and the alternative designs of other retailers? For each order what is the distribution of the fulfilment time difference? What is the difference in fulfilment time by product category, price and size?
Design/methodology/approach
This research uses an empirical method to evaluate the fulfilment time performance of consumer orders made through the Amazon website and one or more competing online retailers. For 1,000 different products two fulfilment times, one at Amazon and another at a competing omnichannel retailer, are recorded. The analysis is then focused on the comparison between this paired data.
Findings
The research confirms that the new logistics methods, including physical facilities, distribution networks and intelligent order processing methods, have resulted in faster order fulfilment times. The performance, though, is not universally dominant and for 33 per cent of orders, the difference is 1 day or less. The fulfilment time difference varied by product, category, price or size.
Practical implications
The ongoing transformation of fulfilment and logistics operations at online retailers has generated several new research questions. This includes the need to confirm the fulfilment efficiency of the new designs and specify time targets. This paper identifies the fulfilment time gap between new and traditional operations. The results suggest that store-based or distribution centre-based fulfilment strategies may not match the new designs.
Originality/value
The study provides a quantitative analysis of the fulfilment time differentials in online retailing. The critical role of fulfilment logistics in the rapidly growing online retail industry can now be better modelled and studied. The survey method representing a single buyer allows for order pair equivalency and eliminates order bias. The results suggest that new warehousing and logistics designs can lead to significantly faster fulfilment times.
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J. Michael Tarn, Muhammad A. Razi, H. Joseph Wen and Angel A. Perez
An e‐fulfillment system is designed to meet the high order volume and stringent customer service requirements of global business‐to‐consumer e‐commerce. The system converts the…
Abstract
An e‐fulfillment system is designed to meet the high order volume and stringent customer service requirements of global business‐to‐consumer e‐commerce. The system converts the traditional warehouse into a multi‐channel e‐fulfillment center. In the e‐commerce environment, some of the toughest decisions must be made on little or no hard information. In this study, the nature of e‐business and the typical fulfillment process are discussed. The authors further examine the strategy and operational requirements for e‐fulfillment. This article is concluded with the implication of a successful e‐fulfillment system, a suggested design of an e‐fulfillment center, and the future research focuses.
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Manu Sharma, Sunil Luthra, Sudhanshu Joshi and Anil Kumar
Coronavirus disease 2019 (COVID-19) has disrupted global supply chains, revealing dreadful gaps and exposing vulnerabilities. Retailers are challenged to tackle risks and organise…
Abstract
Purpose
Coronavirus disease 2019 (COVID-19) has disrupted global supply chains, revealing dreadful gaps and exposing vulnerabilities. Retailers are challenged to tackle risks and organise themselves to fit into the “new normal” scenario. This global outbreak has established a volatile environment for supply chains; it has raised the question of survival in the market, forcing companies to rethink resilient strategies to be adopted for the post-pandemic situation to mitigate the long-term effects of this virus. This study explores the priorities for retail supply chains (RSCs) to align their business operations and strategies for the post-pandemic world.
Design/methodology/approach
This study has utilised integrated full consistency model (FUCOM) – best–worst method (BWM) for assessment of RSCs to enhance their business performance irrespective of pandemic disruptions. The FUCOM has been employed to identify the priorities of determinants enhancing business performance, whereas RSC strategies are evaluated using the BWM method.
Findings
The current study identifies “Collaboration Efficiency” as the main criterion for accelerating the performance of RSCs in a dynamic social environment. Also, the study concludes that “Order Fulfilment” and “Digital RSCs” are the most appropriate resilient business strategies to mitigate the long-term effects.
Research limitations/implications
Supply-demand balancing is a challenging task at the moment, but highly significant for the future. The pandemic disruptions have placed intense pressure on retailers to deliver products as per consumers' changing behaviours towards the purchase of essentials and other products. Hence, “Order Fulfilment” and “Digital RSCs” should be adopted for meeting customer requirements and to ensure sustainability in the post-pandemic business world.
Originality/value
This work sets out a comprehensive framework which will be helpful for accelerating RSCs performance against pandemic disruption by adopting resilient strategies to mitigate the long-term effects.
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Monique Murfield, Christopher A. Boone, Paige Rutner and Rodney Thomas
The purpose of this paper is to investigate the impact of logistics service quality (LSQ) on consumer satisfaction and loyalty in an omni-channel retail environment.
Abstract
Purpose
The purpose of this paper is to investigate the impact of logistics service quality (LSQ) on consumer satisfaction and loyalty in an omni-channel retail environment.
Design/methodology/approach
An empirical, survey-based approach is used to collect data from consumers about experiences with two different omni-channel retail scenarios: buy-online-pickup-in-store (BOPS), and buy-in-store-ship-direct (BSSD). Participants responded to questions regarding the LSQ, consumer satisfaction, and consumer loyalty relative to their actual experience in one of these situations.
Findings
Results suggest that omni-channel consumers are truly unique, and all three dimensions of LSQ (condition, availability, and timeliness) are distinct in their impact on satisfaction and loyalty. Results suggest that in the BOPS sample, consumer satisfaction partially mediates the relationship between condition and loyalty and fully mediates the relationship between timeliness and loyalty. In the BSSD model, consumer satisfaction partially mediates the relationship between timeliness and consumer loyalty.
Research limitations/implications
This research studies LSQ in two different omni-channel scenarios; additional research is needed to explore other omni-channel scenarios and extend the findings to be more generalizable.
Practical implications
Managers should recognize that for omni-channel consumers, timeliness is the essential driver of satisfaction and loyalty. Retailers need to account for this reality and dedicate substantial resources to meet delivery requirements in a timely manner. Logistics service providers need to emphasize speed and reliability of their delivery processes for omni-channel consumers.
Originality/value
This research is the first attempt at conceptualizing LSQ in an omni-channel supply chain, and testing the impact of LSQ on consumer satisfaction and loyalty.
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Timothy M. Laseter, Jay Ashton and Vincent Gu
This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such…
Abstract
This case is used in Darden's first-year core operations class as part of a module on supply chain management. The Musictoday company provided online retailing services for such clients as the Dave Matthews Band and the Rolling Stones. But the lack of a formal inventory-management process had Musictoday concerned about future stockouts that would result in lost sales. This case covers the basics of safety stock within the context of a periodic review system. It introduces students to the periodic review system and provides them with an opportunity to link the optimal review period with the EOQ concept.
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Nikunj Kumar Jain, Hasmukh Gajjar, Bhavin J. Shah and Ashish Sadh
The purpose of this paper is to understand the dimensions of the e-fulfillment process and its influence on customers in pure e-tailing; to classify the pertinent literature that…
Abstract
Purpose
The purpose of this paper is to understand the dimensions of the e-fulfillment process and its influence on customers in pure e-tailing; to classify the pertinent literature that has evolved over time addressing relevant managerial issues; and to identify the gaps between the practices prevalent in the e-fulfillment and those suggested by academicians to develop insights for future research.
Design/methodology/approach
A critical systemic literature review approach was used for the study with quantitative and qualitative analysis.
Findings
The authors identified seven dimensions of e-fulfillment in the literature on pure e-tailing: e-business quality, product quality, pricing, availability, timeliness, condition and ease of return and explored its linkages with shopping satisfaction and repurchase intention of customers in e-tailing.
Research limitations/implications
The study was skewed toward an empirical approach. The study does not include many of the analytical models in this space.
Practical implications
This study helps e-tailers, academicians and practitioners understand critical dimensions of e-fulfillment and its influence on customers in the pure e-tailing setting in order to design customer-centric e-fulfillment architecture.
Originality/value
The study identified seven dimensions of e-fulfillment in the literature and explored its influence on shopping satisfaction and repurchase intention of customers in pure e-tailing. This is the first compilation of standalone/isolated studies available in the literature to provide e-tailers and academicians meaningful insights into e-fulfillment in the pure e-tailing setting.
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Beth Davis-Sramek, Rafay Ishfaq, Brian J. Gibson and Cliff Defee
The purpose of this research is to provide a theoretical explanation of the strategic and structural changes occurring in US omnichannel retail supply chains. Using longitudinal…
Abstract
Purpose
The purpose of this research is to provide a theoretical explanation of the strategic and structural changes occurring in US omnichannel retail supply chains. Using longitudinal data, the research documents transitions in retailers' supply chain strategies, specifically related to the order fulfillment process. It further offers explanation for how and why these transitions occurred.
Design/methodology/approach
This research uses a process theory lens to explain the business model transformation of the omnichannel order fulfillment process. Using a case study approach, a longitudinal multicase study was conducted with six large US retailers over a span of 10 years. Within-case and cross-case analysis identifies the sequence and rationale of different strategic and structural shifts in retailers' omnichannel order fulfillment strategy.
Findings
The within- and cross-case analyses offer insight into how the transitions occur, at what rate they occur across several different retailers, and why the rate can differ across the stages of omnichannel transition among retailers. The research documents that retailers took varied approaches to strategically develop and structurally change their order fulfillment processes in their transition to omnichannel retail. The findings reveal that these approaches are dependent on retailers' store-based logistics capabilities and specific supply chain arrangements within their retail segment.
Research limitations/implications
The longitudinal and theoretically driven approach provides researchers a better understanding of the business model transformation in US retail omnichannel operations. This approach builds theoretical context around why and how strategic and structural changes in omnichannel fulfillment occurred over time. It also explains the underlying omnichannel phenomenon more accurately than research focused on discrete changes at a single point in time.
Practical implications
The findings and managerial insights can assist practitioners in understanding how environmental changes have led to strategic and structural shifts across different stages of omnichannel fulfillment evolution. These insights also provide guidance to retailers that are currently in early stages of developing their omnichannel fulfillment strategy.
Originality/value
Logistics and fulfillment operations of retailers have changed dramatically over the last 10–15 years. The authors apply a process theory lens to explain how and why retailers have integrated their channels to achieve omnichannel success at the store level.
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Rohit Titiyal, Sujoy Bhattacharya and Jitesh J. Thakkar
This paper aims to review the literature on “E-fulfillment” with respect to marketing and operations issues in the current dynamic and complex e-tailing environment and thereby…
Abstract
Purpose
This paper aims to review the literature on “E-fulfillment” with respect to marketing and operations issues in the current dynamic and complex e-tailing environment and thereby generate significant insights.
Design/methodology/approach
This paper is based on a systematic literature review on e-fulfillment focusing on marketing and operations issues therein. This systematic literature review consists of a critical review on e-fulfillment under planning (review question initialisation), searching (literature search), screening (literature evaluation), extraction and synthesis and reporting phases to conceptualise e-fulfillment. A total of 122 research articles have been reviewed to explore e-fulfillment and to develop key constructs and propositions.
Findings
This review provides the following three outcomes. First, the varied-fulfillment definitions have been critically reviewed, leading to synthesis, and thereby, an e-fulfillment definition is provided. Further, the variations for e-fulfillment across product types, which have been identified as a key variable for e-fulfillment, have been explored. Second, authors find five e-fulfillment components at the marketing and operations interface: website quality, customisation strategy, distribution strategy, last mile delivery and return management. Continuing with the e-fulfillment interface with marketing, the linkages between e-fulfillment and select post-purchase consumer behaviours measures across different product types have been reviewed. The paper thus with a focus on synthesising e-fulfillment literature from a process perspective emphasises the consumer behaviour metric for measuring e-fulfillment performance.
Practical implications
This study would help academicians, researchers, e-tailers and practitioners to understand e-fulfillment from a process perspective. For the researcher, it presents areas for future research by giving possible research directions in this emerging area. This study also brings out the impact of e-fulfillment according to product type on the post-purchase consumer behaviour measures, which will help e-tailers to link e-fulfillment to consumer behaviour metrics.
Originality/value
The paper classifies the fragmented literature to develop constructs and propositions for e-fulfillment. This is the first kind of study on e-fulfillment process and its impact on select post-purchase consumer behaviour measures across product types.
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