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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.

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.

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.

To support further theory development, nine contextual factors and their relationship to OFC configurations are proposed.

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.

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.

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.

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.

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.

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.

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.

This study is original in the way it provides in-depth, case study findings about contextual factors and their influence on omnichannel warehouse configuration.

The purpose of this paper is to increase the understanding of how warehouse operations and design are affected by the move toward integrated omni-channels.

A structured literature review is conducted to identify and categorize themes in multi- and omni-channel logistics, and to discuss how aspects related to these themes impact and pose contingencies for warehouse operations and design.

The review revealed a lack of focus on warehouse operations and design in multi- and omni-channels. Instead, most articles published in scientific journals discuss changes in consumer demand and implications for the network level, concerning aspects such as the organization and management of material and information flows, inventory management, resources, actors and relationships. Ten themes in omni-channel logistics were identified and grouped into two categories: the value proposition and channel management; and the physical distribution network design. The themes and related aspects have implications for warehousing, and by combining these with general warehousing knowledge, the authors derive a comprehensive and structured agenda is derived to guide future research on omni-channel warehousing.

This paper outlines a research agenda, including detailed research questions, for advancing the theory on warehouse operations and design in omni-channels.

The agenda can inspire practitioners in their work to understand the upcoming challenges and address relevant issues in omni-channel warehousing, taking into consideration its interdependence with value proposition, channel management and network decisions.

This is the first comprehensive review focusing on and synthesizing available literature on omni-channel warehousing. This topic has until now received limited coverage but is of increasing importance to scholars in the field.

This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit uncertainty.

The paper analyzes the current performance of a retailer's e-commerce and return operations by estimating costs generated by product returns, including product handling costs, tied-up capital, inventory holding costs, transportation costs, and order-picking costs. The estimated costs were built on 2,229 return transactions from a Scandinavian fashion footwear retailer. A digital product fitting technology was tested with the retailer’s products and resulted in estimations on how such technology could affect product returns.

The cost of a return is approximately 17% of the prime cost. The major cost elements are product handling costs and transportation costs, which together amount to 72% of the total costs. If well calibrated, the fitting technology can cut fit-related return costs by up to 80%. The findings show how customers reacted to the fitting technology: it was unable to verify fit every time, but it serves as a useful and effective support tool for customers when placing orders.

Virtual fit verification using digital product fitting is key to retailers to reduce fit-related returns. Digital product fitting using three-dimensional scanning is more appropriate for some products, but it is unsuitable for products that are difficult to measure and scan.

The paper contributes an empirical estimate of retail supply chain costs associated with fit uncertainty, as well as theoretical understanding of the role of pre-sales fit verification in avoiding product returns.

The purpose of this paper is to explore the current trends, implications and challenges of information systems (IS) related to omni-channel logistics.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The empirical insights and theoretical discussions provide practically useful guidance, including outlined trends, for selecting and benchmarking automation and complementary technologies in warehouse operations.

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.

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?

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.

“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.

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.

The literature on warehouse performance assessments is mainly focussed on the efficiency and effectiveness of an action or activity due to customer demand and tailored fulfilment, with less attention being given to the performance measurement of each function of the warehouse and its overall productivity. Therefore, this study was aimed at revising the key warehouse performance metrics to a set of productivity measurement indicators that can be adopted internationally for benchmarking productivity performance.

A literature review and semi-structured survey questionnaire were used for this study. The importance of warehouse productivity performance was reviewed to revamp the measurement indicators. Through the use of a directed content analysis and descriptive analysis, an extensive study was carried out to analyze existing warehouse productivity indicators.

The findings of this study provide comprehensive references for practitioners and academicians for improving the classification of productivity measurements from existing key performance metrics for warehousing. Also, this paper highlights the warehouse resources related to the respective warehouse operation activities.

The study was limited to productivity performance indicators adapted from Staudt et al. (2015). Furthermore, the samples for this study comprised Malaysian academicians and practitioners in the related field. The findings can be adapted on a global scale as this study implemented general warehouse operation processes.

Consequently, the contributions of this study are that it provides relevant benchmarks for key productivity performance indicators in the warehousing sector that has worldwide applicability and the developed model provides a conceptual platform from which further theoretical and empirical developments can be carried out.

Omnichannel (OC) logistics is undergoing a significant transformation in grocery retail. To shed light on this important but underresearched phenomenon, this study aims to investigate how grocery retailers transform and why some are more successful in transforming OC logistics.

Applying dynamic capabilities as a theoretical lens, a multiple case study was conducted with three grocery retailers at different stages of their transformation.

Six microfoundations of dynamic capabilities were identified as critical for enabling OC transformation. The study highlights important differences in dynamic capabilities, which can be attributed to investment decision-making, governance and creating co-specialization. Finally, the authors propose seven propositions for contextualization of dynamic capabilities for OC transformation in grocery retail.

This study is original by contextualizing microfoundations in grocery OC retailing. The study contributes to theory and practice by showing the value of dynamic capabilities, stressing the important interrelation among a retailer's governance structure, leadership and capability to make investment decisions, increase logistics coordination and co-specialize.