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Article
Publication date: 4 July 2016

Rafay Ishfaq, C. Clifford Defee, Brian J Gibson and Uzma Raja

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their…

8884

Abstract

Purpose

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their business model. Multiple attributes of the physical distribution process are evaluated to identify associations with order fulfillment methods adopted by omni-channel retailers.

Design/methodology/approach

A multi-method approach is used which includes qualitative evaluation of 50 interviews of supply chain executives from large retailers. Additionally, secondary data about firm size, store and distribution networks, online sales, distribution configuration, and order delivery options are used. The findings of qualitative analysis are incorporated into a quantitative classification-tree analysis to identify associations among distribution attributes, order fulfillment methods and order delivery services.

Findings

Retailers are developing a consistent omni-channel physical distribution process in which stores undertake a bigger role in order fulfillment and delivery. Level of online sales, size of distribution network, number of sales associates at a store, and number of years engaged in the online channel are identified as having strong associations with the type of order fulfillment method used by omni-channel retailers. The study finds that retailers are focussed on integrating their store and DC inventories and have the benefit of scale with a large store network.

Practical implications

Retailers are reconfiguring their physical distribution processes in the complex omni-channel environment can use the findings of this study to evaluate their strategy and identify the level of realignment effort that is needed. A better understanding of the requirements of physical distribution in an omni-channel setting will guide retailers in developing requisite operational capabilities.

Originality/value

This paper provides a first in-depth look at order fulfillment choices in omni-channel retail and identifies efforts that are underway to realign key elements of the physical distribution process.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 6/7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 September 2011

Hyunwoo Lim and Narushige Shiode

The purpose of this paper is to study how cost efficiency and the reliability of a physical distribution network are affected by changes in online shopping demand and to suggest…

6092

Abstract

Purpose

The purpose of this paper is to study how cost efficiency and the reliability of a physical distribution network are affected by changes in online shopping demand and to suggest how logistics service providers can respond to such changes.

Design/methodology/approach

Based on a discrete event simulation approach, possible adaptive measures to online shopping demand increase are tested at three levels of decision making in parcel distribution network: priority assignment in the main hub (operational), introduction of sub‐hubs (tactical), and increase in the hub‐terminal capacity (strategic). The feasibility of the simulation is tested with parameters adopted from the logistics service data of an existing major parcel carrier in South Korea.

Findings

Findings from the simulation model suggest that the existing physical distribution network can improve its cost efficiency and service reliability by evolving into a more centralized network structure with increased capacity of transshipment facilities if the online shopping demand is expected to increase consistently over the long run.

Practical implications

This research will help logistics service providers to have good insights into performances of their distribution networks at different levels of demand and to devise a plan for adaptation to meet future demand.

Originality/value

This paper provides a framework to understand the complex relationship between network configurations, service levels, costs, and other decision‐making processes with respect to changes in online shopping demand based on a simulation approach.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 January 1983

James R. Stock and Douglas M. Lambert

The International Physical Distribution Environment Involvement in international markets requires an awareness of the variables — both controllable and uncontrollable — which…

947

Abstract

The International Physical Distribution Environment Involvement in international markets requires an awareness of the variables — both controllable and uncontrollable — which impact on a firm's distribution network. Political, legal, social and economic conditions, market structure and competition and the level of distribution technology available are all uncontrollable factors which influence a firm's distribution planning. Strategy must be directed towards administering physical distribution components so as to minimise costs and provide an acceptable level of customer service. Companies should acknowledge the differences that exist between domestic and foreign activities, and within overseas markets, country variations, regarding levels of customer service and inventory and transportation facilities that can be provided and the associated costs involved. Key managerial elements include packaging and labelling and warehousing and storage facilities dependent upon distribution systems required. Channel of Distribution Strategies Besides market potential, there are a number of reasons for entering international markets — an advanced domestic product life cycle, excess capacity, less internal overseas competition, geographical diversification and, perhaps, for materials/components saving. Four principle strategies for overseas involvement are available: exporting, licencing, joint ventures and ownership. In general firms may follow more than one strategy between markets and as circumstances change in individual market areas. Management of the Export Shipment Export distributors, customs house brokers and foreign freight forwarders are amongst the major organisations involved in exporting activity. Documentation remains of paramount importance. Operating in an unfamiliar financial environment, it is essential that account is taken of exchange rates, tax considerations, levels of inflation and other financial aspects affecting physical distribution; all will impact on profit levels and, if mismanaged or overlooked, will generate losses. Managing International Physical Distribution Activities International distribution management is complex. Success requires the correct answers to a number of difficult issues in order to develop the optimal distribution system for each target market. Planning, implementation and control of all international physical distribution activities is essential to the success of any foreign marketing efforts.

Details

International Marketing Review, vol. 1 no. 1
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 1 April 1990

Teodor Gabriel Crainic and Pierre J. Dejax

Interactive‐graphic systems and operations research methodologies are increasingly being combined to produce efficient, versatile and powerful tools that enhance the…

1856

Abstract

Interactive‐graphic systems and operations research methodologies are increasingly being combined to produce efficient, versatile and powerful tools that enhance the decision‐making process. The possible contribution of such tools to the planning of distribution systems for industrial firms and freight carrier service networks and operations is examined and compared.

Details

Logistics Information Management, vol. 3 no. 4
Type: Research Article
ISSN: 0957-6053

Keywords

Article
Publication date: 1 January 1989

Teodor Gabriel Crainic and Pierre J. Dejax

Interactive‐graphic systems and operations research methodologiesare increasingly being combined to produce efficient, versatile andpowerful tools that enhance the decision‐making…

1982

Abstract

Interactive‐graphic systems and operations research methodologies are increasingly being combined to produce efficient, versatile and powerful tools that enhance the decision‐making process. The possible contribution of such tools to the planning of distribution systems for industrial firms and freight carrier service networks and operations is examined and compared. The similarities and differences between the two systems are derived and an examination is undertaken to determine whether a unique planning system may adequately respond to the requirements of the two problems.

Details

International Journal of Physical Distribution & Materials Management, vol. 19 no. 1
Type: Research Article
ISSN: 0269-8218

Keywords

Article
Publication date: 1 February 1991

John Gattorna, Abby Day and John Hargreaves

Key components of the logistics mix are described in an effort tocreate an understanding of the total logistics concept. Chapters includean introduction to logistics; the…

6140

Abstract

Key components of the logistics mix are described in an effort to create an understanding of the total logistics concept. Chapters include an introduction to logistics; the strategic role of logistics, customer service levels, channel relationships, facilities location, transport, inventory management, materials handling, interface with production, purchasing and materials management, estimating demand, order processing, systems performance, leadership and team building, business resource management.

Details

Logistics Information Management, vol. 4 no. 2
Type: Research Article
ISSN: 0957-6053

Keywords

Article
Publication date: 1 February 1982

James R. Stock and Douglas M. Lambert

World business, multinational company, and world enterprise are all terms being used with more frequency as a significantly larger number of businesses become international both…

Abstract

World business, multinational company, and world enterprise are all terms being used with more frequency as a significantly larger number of businesses become international both in philosophy and in scope of operations. For a continually growing number of firms, the entire world is considered a marketplace for their products.

Details

International Journal of Physical Distribution & Materials Management, vol. 12 no. 2
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 1 January 1972

DONALD J. BOWERSOX, OMAR KEITH HELFERICH and EDWARD J. MARIEN

The problem considered in this paper is that of long range planning of physical distribution systems and how this may be improved through simulation

Abstract

The problem considered in this paper is that of long range planning of physical distribution systems and how this may be improved through simulation

Details

International Journal of Physical Distribution, vol. 2 no. 1
Type: Research Article
ISSN: 0020-7527

Open Access
Article
Publication date: 29 August 2018

Joakim Hans Kembro, Andreas Norrman and Ebba Eriksson

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.

25558

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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

Practical implications

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.

Originality/value

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.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Book part
Publication date: 3 December 2018

Lynne Kiesling

The platform economy reflects the business model of some of the largest and fastest-growing firms in the economy. Platform business models emerge and thrive because of the…

Abstract

The platform economy reflects the business model of some of the largest and fastest-growing firms in the economy. Platform business models emerge and thrive because of the potential profit in taking advantage of transactions cost reductions to connect people for mutual benefit, and this value creation is best understood by thinking about the epistemology of decentralized market processes. Three essential aspects of knowledge are relevant to platform business models: (1) knowledge can be private and diffuse; (2) knowledge can be contextual; and (3) knowledge may not exist outside of the economic process. After defining and analyzing the technology, economic, and institutional aspects of platforms the author defines and applies market epistemology to explore how platforms harness technological and organizational features to create value-enhancing market platforms by exploiting the epistemic benefits of technology-enabled decentralized market processes. The author concludes by using this epistemic framework to propose an electricity distribution platform business model – the retail electricity industry is undergoing a process of technological dynamism, and as a regulated infrastructure industry, evolving into a decentralized market industry is presenting challenges to which this epistemic framework can bring increased understanding.

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