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1 – 10 of over 6000Andreas Risberg, Hamid Jafari and Erik Sandberg
The purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an…
Abstract
Purpose
The purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an omni-channel context.
Design/methodology/approach
Drawing on configuration theory (CT), the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyze data on 72 Swedish omni-channel retailers.
Findings
Four configurations are identified—store-oriented small and medium-sized enterprises (SME's), online-oriented SME's, large store-oriented retailers and large online-oriented retailers. The results show that while offering a wide range of delivery options is necessary to achieve high performance, it is not sufficient, and that returns and fulfilment should be simultaneously considered. For instance, large high-performers leverage their stores and warehouses for fulfilment and returns in an integrated way irrespective of sales channel-mix. However, SME's appear to focus on fulfilment simplicity with less-costly delivery alternatives, where store-oriented SME's leverage stores and the online-oriented counterparts leverage warehouses. Consequently, the authors develop a configurational taxonomy and discuss a set of recipes which provide insights for researchers and practitioners.
Research limitations/implications
The study provides a more comprehensive understanding of the pathways to success, and potential pitfalls, in the last mile logistics context.
Originality/value
This study applies a novel methodology in the field, namely fsQCA, to explore the paths to competitive advantage. It covers a wide range of stages in the LM including back-end fulfilment, delivery and returns. It also provides insight into the logistics practices of both SME's and large omni-channel retailers.
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Gino Marchet, Marco Melacini, Sara Perotti, Monica Rasini and Elena Tappia
Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a…
Abstract
Purpose
Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a sales-based view, with numerous operational challenges to be fully investigated yet. The purpose of this paper is to investigate how companies set the logistics variables in their OC management strategy and the business logistics models currently most adopted.
Design/methodology/approach
A two-step methodology was adopted. First, a systematic combining approach with scientific literature review and case studies allowed to derive a framework for classifying the key logistics variables and the related options. The framework was then used to conduct a qualitative survey targeting 92 Italian companies operating in food manufacturing, food retailing and non-food retailing. Collected data were analysed by means of cluster analysis.
Findings
Implementing an OC management strategy requires to set 11 logistics variables belonging to four strategic areas: delivery service, distribution setting, fulfilment strategy and returns management. A broad empirical investigation showed the choices made by companies when setting the logistics variables to implement an OC management strategy. Lastly, four business logistics models, differing in terms of both business sector and OC maturity, were discussed.
Originality/value
The proposed framework extends earlier studies by including additional significant logistics variables. The empirical analysis provides new insights on how to re-structure the business logistics model in OC, suggesting channel integration and the coexistence of multiple configurations as main enablers of an OC proposition.
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Ebba Eriksson, Andreas Norrman and Joakim Kembro
The purpose of this paper is to investigate how grocery retailers configure their online fulfilment centres (OFC) as they move towards an omni-channel structure and what…
Abstract
Purpose
The purpose of this paper is to investigate how grocery retailers configure their online fulfilment centres (OFC) as they move towards an omni-channel structure and what contextual factors influence their decisions.
Design/methodology/approach
An exploratory case study with three grocery retailers in the Nordic countries was conducted. The study investigates the current OFC configurations and identifies nine important contextual factors.
Findings
This study shows the importance of understanding the changes that omni-channel retailing entails for an OFC configuration. Nine contextual factors were identified. Several of the factors are found in previous theory, but this paper extends the knowledge of how they affect the configuration of an OFC in grocery retail. The changes in, for example, order characteristics create different requirements for picking, packing, sorting and shipping when compared with traditional distribution centres (DC). Although representing a separate flow for online fulfilment, OFC configuration depends on how the other logistics flows from the DC to stores are designed.
Research limitations/implications
To support further theory development, nine contextual factors and their relationship to OFC configurations are proposed.
Practical implications
This study provides managerial value in two ways. First, grocery retailers with one or more OFCs can benchmark existing solutions using the empirical case descriptions. Second, the findings provide grocery retailers with knowledge of how to configure an OFC.
Originality/value
The literature lacks a holistic approach towards how grocery retailers configure their OFCs and what factors affect these decisions. This study provides the first in-depth analysis of how the omni-channel context affects the configuration of all the aspects of an OFC.
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Andreas Risberg and Hamid Jafari
In light of the recent dynamics, this paper aims to explore the last mile (LM) of e-commerce retailers. Two research questions are developed (1) What firm characteristics are…
Abstract
Purpose
In light of the recent dynamics, this paper aims to explore the last mile (LM) of e-commerce retailers. Two research questions are developed (1) What firm characteristics are critical in LM practices? and (2) How do LM practices differ based on the identified critical firm characteristics?
Design/methodology/approach
Data were collected via 10 interviews with e-commerce executives, as well as a survey on 200 e-commerce firms in different retail sectors in Sweden.
Findings
“Firm Size” and “Sales Channel-Mix” appear to be the top critical firm characteristics in LM practices. While last mile delivery (LMDe) was found to vary more based on sales channel mix than firm size, the opposite occurs for last mile back-end fulfilment (LMBF). Moreover, last mile consumer steering (LMCS) was found to vary only with sales channel-mix. Unexpectedly, primarily store-based retailers capitalize on their stores while offering competitive remote services; they hence compete indirectly with their existing store network.
Originality/value
While most prior work has focused on LMBF and LMDe for strategizing, the consumer-steering aspect seems to have been a missing link. This study develops an integrated framework for LM strategy planning, incorporating LMCS, LMBF and LMDe. New aspects such as the environment, specialization and inventory management are included. The findings provide insights for executives when strategizing, undertaking competition analysis and positioning the firm.
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Soroosh Saghiri, Emel Aktas and Maryam Mohammadipour
Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to…
Abstract
Purpose
Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures.
Design/methodology/approach
The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation.
Findings
Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects.
Practical implications
To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products.
Originality/value
This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors.
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Joakim Hans Kembro and Andreas Norrman
Recent studies have highlighted the importance of adopting a contingency approach to configuring omnichannel warehouses. Nonetheless, research on how various contextual factors…
Abstract
Purpose
Recent studies have highlighted the importance of adopting a contingency approach to configuring omnichannel warehouses. Nonetheless, research on how various contextual factors influence the selection of warehouse configuration is scarce. This study fills this knowledge gap by exploring how and why certain configurations fit in different omnichannel contexts.
Design/methodology/approach
A case study is conducted with six leading Swedish omnichannel retailers. Focusing on outbound warehouse configurations, data are collected through interviews, on-site observations, and secondary sources. A multistep analysis is made, including both pattern matching and explanation building.
Findings
The qualitative analysis reveals 16 contextual factors, of which assortment range, requested online order fulfillment times, goods size and total transactions are the most influential. The study shows how contextual factors create different challenges, thereby influencing the choice of the configurations. In addition to market dynamics and task complexity, the study describes four categories of the factors and related challenges that are particularly important in omnichannels: speed, space, economies of scale and tied-up capital.
Research limitations/implications
The findings highlight the importance of understanding context and imply that multiple challenges may require trade-offs when selecting configurations, for example, regarding what storage, processes and resources to integrate or separate. To confirm, extend, challenge and further operationalize the ideas and observations put forward in this paper, an agenda with future research issues is given for this accelerating, contemporary phenomenon.
Practical implications
Managers could leverage the frameworks proposed for the contextual profiling of their current and future positions. The frameworks provide support for understanding the important challenges and potential trade-offs and developing aligned configurations.
Originality/value
This study is original in the way it provides in-depth, case study findings about contextual factors and their influence on omnichannel warehouse configuration.
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Arianna Seghezzi, Riccardo Mangiaracina and Angela Tumino
This paper investigates the logistics management in the e-grocery sector. It contrasts the key issues faced by practitioners and the topics addressed in the academic literature…
Abstract
Purpose
This paper investigates the logistics management in the e-grocery sector. It contrasts the key issues faced by practitioners and the topics addressed in the academic literature, to identify potential misalignments between research and practice and propose avenues for future efforts.
Design/methodology/approach
This work adopts a twofold methodological approach. From an academic perspective, a systematic literature review (SLR) is performed to define the topics addressed so far by scholars when analysing e-grocery logistics. From a managerial perspective, a Delphi study is accomplished to identify the most significant issues faced by logistics practitioners in the e-grocery context and the associated significance.
Findings
The study develops a conceptual framework, identifying and mapping the 9 main logistics challenges for e-grocery along 4 clusters, in the light of a logistics-related revision of the SCOR model: distribution network design (area to be served, infrastructures), order fulfilment process (picking, order storage, consolidation, delivery), logistics-related choices from other domains (product range, stock-out management) and automation. These elements are discussed along three dimensions: criticalities, basic and advanced/automation-based solutions. Finally, the main gaps are identified – in terms of both under-investigated topics (order storage and stock-out management) and investigated topics needing further research (picking and automation) – and research questions and hypotheses are outlined.
Originality/value
This paper provides a threefold contribution, revolving around the developed framework. First, it investigates the state of the art about e-grocery logistics, classifying the addressed themes. Second, it explores the main issues e-grocery introduces for logistics practitioners. Third, it contrasts the two outcomes, identifying the misalignment between research and practice, and accordingly, proposing research directions.
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Arianna Seghezzi, Chiara Siragusa and Riccardo Mangiaracina
This paper identifies, configures and analyses a solution aimed at increasing the efficiency of in-store picking for e-grocers and combining the traditional store-based option…
Abstract
Purpose
This paper identifies, configures and analyses a solution aimed at increasing the efficiency of in-store picking for e-grocers and combining the traditional store-based option with a warehouse-based logic (creating a back area dedicated to the most required online items).
Design/methodology/approach
The adopted methodology is a multi-method approach combining analytical modelling and interviews with practitioners. Interviews were performed with managers, whose collaboration allowed the development and application of an empirically-grounded model, aimed to estimate the performances of the proposed picking solution in its different configurations. Various scenarios are modelled and different policies are evaluated.
Findings
The proposed solution entails time benefits compared to traditional store-based picking for three main reasons: lower travel time (due to the absence of offline customers), lower retrieval time (tied to the more efficient product allocation in the back) and lower time to manage stock-outs (since there are no missing items in the back). Considering the batching policies, order picking is always outperformed by batch and zone picking, as they allow for the reduction of the average travelled distance per order. Conversely, zone picking is more efficient than batch picking when demand volumes are high.
Originality/value
From an academic perspective, this work proposes a picking solution that combines the store-based and warehouse-based logics (traditionally seen as opposite/alternative choices). From a managerial perspective, it may support the definition of the picking process for traditional grocers that are offering – or aim to offer – e-commerce services to their customers.
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Joakim Kembro and Andreas Norrman
To meet customers' expectations on shorter lead times, high product availability, flexibility, and variation in delivery and return options, retailers have turned their attention…
Abstract
Purpose
To meet customers' expectations on shorter lead times, high product availability, flexibility, and variation in delivery and return options, retailers have turned their attention to warehousing and are making big investments in technology. Currently, technology providers are pushing for smart warehousing, a new and under-researched phenomenon. This study aims to conceptualize the term and examine pathways toward implementing smart warehousing.
Design/methodology/approach
An exploratory survey was administered to 50 leading Swedish retailers in varying segments. A two-tailed t-test for equality of means was used to detect significant differences between current and future states.
Findings
The study found that future smart warehouses will be automated, autonomous, digital, and connected, but that retailers will follow different paths along this journey, driven by contextual trends, e.g. sales growth, wider product assortment, shorter lead-time offerings, and integration of brick-and-mortar and online stores. Interestingly, the study revealed that many of the retailers that aim to create smart warehouses in five years are not the retailers with the most developed technology today.
Research limitations/implications
The paper operationalizes smart warehousing in two dimensions: degree of automation and degree of digitalization and connectivity of information platforms. Based on the findings, 16 theoretical propositions are put forth that, based on contextual factors, explain different pathways for retailers to implement smart warehousing.
Practical implications
The empirical insights and theoretical discussions provide practically useful guidance, including outlined trends, for selecting and benchmarking automation and complementary technologies in warehouse operations.
Originality/value
This paper conceptualizes and operationalizes smart warehousing – an original approach. It is also one of the first to investigate the technological transformation in retail warehousing empirically, explaining how and why retailers choose different pathways toward smart warehousing.
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Joakim Kembro and Andreas Norrman
The purpose of this paper is to explore the current trends, implications and challenges of information systems (IS) related to omni-channel logistics.
Abstract
Purpose
The purpose of this paper is to explore the current trends, implications and challenges of information systems (IS) related to omni-channel logistics.
Design/methodology/approach
An exploratory survey study is conducted with 23 Swedish retail companies transforming to omni-channel logistics. The study investigates the retailers’ current situations regarding logistics IS as well as their perceptions of the future development.
Findings
From the perspective of leading Swedish retailers, omni-channel requirements drive the implementation of new IS to support effective and efficient material handling across the network and in the respective nodes. The shifting roles and increase in the number of handlings nodes will require flexible IS platforms that can support multiple flows and integrated inventory. The major increase in the implementation of new, critical functionalities is related to real-time, multi-criteria decision making on order allocation to different handling nodes. More advanced IS functionality is also required in material-handling nodes to support the increased degree of automation and continuous improvements with the aim to shorten order-to-delivery lead times. A number of challenges are identified that must be addressed during the transformation to omni-channel logistics, especially related to the growing complexity and decentralization of networks, tougher lead-time requirements and larger product assortments.
Research limitations/implications
To support further theory development, 11 propositions related to trends and a schematic framework conceptualizing implications and challenges are submitted for testing in future research.
Practical implications
The study highlights several aspects related to logistics IS that are important for practitioners to consider as they undergo the transition to omni-channels. It provides insights into IS functionalities that are likely to grow in use and criticality for supporting material handling and inventory management in increasingly complex and decentralized networks. In particular, the authors stress the need to implement functionality that works across previously separated handling nodes and decision areas. Managers can also use the propositions to reflect on what the near future holds and as input for their own scenario analyses.
Originality/value
Previous research has primarily focused on technology that supports the front-end customer experience. This study is original in that it explores the trends, implications and challenges for logistics IS in omni-channels – an area that has not been explored in detail previously. It also studies both perceived and expected changes over time related to the transformation toward omni-channel logistics.
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