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Article
Publication date: 30 September 2019

Rafay Ishfaq and Uzma Raja

The purpose of this paper is to focus on the effectiveness of the inventory audit process to manage operational issues related to inventory errors in retail stores. An evaluation…

1527

Abstract

Purpose

The purpose of this paper is to focus on the effectiveness of the inventory audit process to manage operational issues related to inventory errors in retail stores. An evaluation framework is proposed based on developing an error profile of store inventory using product attributes and inventory information.

Design/methodology/approach

A store inventory error profile is developed using data on price, sales, popularity, replenishment cycle, inventory levels and inventory errors. A simulation model of store inventory management system grounded in empirical data is used to evaluate the effectiveness of the inventory audit process in a high SKU-variety retail store. The framework is tested using a large transaction data set comprised of over 200,000 records for 7,400 SKUs.

Findings

The results show that store inventory exhibits different inventory error profile groups that would determine the effectiveness of store inventory audits. The results also identify an interaction effect between store inventory policies and replenishment process that moderates the effectiveness of inventory audits.

Research limitations/implications

The analysis is based on data collected from a single focal firm and does not cover all the different segments of the retail industry. However, the evaluation framework presented in the paper is fully generalizable to different retail settings offering opportunity for additional studies.

Practical implications

The findings about the role of different error profile groups and the interaction effect of store audits with inventory and store replenishments would help retailers incorporate a more effective inventory audit process in their stores.

Originality/value

This paper presents a novel approach that uses store inventory profiles to evaluate the effectiveness of inventory audits. Unlike previous papers, it is the first empirical study in this area that is based on inventory error data gathered from multiple audits that identify the interaction effect of inventory policy and replenishments on the inventory audit process.

Details

The International Journal of Logistics Management, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

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…

8890

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: 8 August 2016

Rafay Ishfaq, Uzma Raja and Shashank Rao

The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in…

2128

Abstract

Purpose

The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in the internet retail supply chain. Specifically, this paper investigates how supply chain managers can use inventory (seller-induced scarcity) and pricing (PL) levers to control product returns.

Design/methodology/approach

Empirical data of sales and product returns from an internet retailer is analyzed to identify the scale of the effect that product scarcity and PL has on product returns. These factors are considered in developing a sales-return process model which is used with empirical data in a simulation study. The study evaluates changes in product returns for different policy settings related to PL and inventory levels. Findings of the simulation study are validated using statistical analysis of empirical data.

Findings

PL and seller-induced product scarcity affect the rate of product returns; however, the scale of this effect depends on inventory and pricing decisions. The results identify an inflection boundary based on scarcity and PL levels which reverses this effect. This reversal is explained by underlying principles at play regarding buyers’ valuation of the sale and corresponding product attributes.

Practical implications

Supply chain managers in internet retail can leverage lower inventory under the seller-induced scarcity approach to improve revenues. However, reducing inventory levels beyond a threshold is counterproductive, due to an associated increase in product returns. Similarly, setting market competitive prices (PL) can help reduce product returns. Under the seller-induced scarcity condition, this effect is reversed for inventory levels below a threshold. Retailers can implement the methodology developed in this paper to identify the inventory-price threshold that can help increase revenues while keeping the rate of product returns at a manageable level.

Originality/value

This research extends prior work regarding the role of product scarcity and pricing on product returns and develops a deeper understanding of how these factors can be managed to control product returns in the internet retail setting.

Details

The International Journal of Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 15 February 2018

Erdem Galipoglu, Herbert Kotzab, Christoph Teller, Isik Özge Yumurtaci Hüseyinoglu and Jens Pöppelbuß

The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain…

7673

Abstract

Purpose

The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain management; and to reveal the intellectual foundation of omni-channel retailing research.

Design/methodology/approach

The paper applies a multi-method approach by conducting a content-analysis-based literature review of 70 academic papers. Based on the reference lists of these papers, the authors performed a citation and co-citation analysis based on the 34 most frequently cited papers. This analysis included multidimensional scaling, a cluster analysis and factor analysis.

Findings

The study reveals the limited consideration of logistics and supply chain management literature in the foundation of the omni-channel retailing research. Further, the authors see a dominance of empirical research as compared to conceptual and analytical research. Overall, there is a focus on the Western retail context in this research field. The intellectual foundation is embedded in the marketing discipline and can be characterised as lacking a robust theoretical foundation.

Originality/value

The contribution of this research is identifying, evaluating and structuring the literature of omni-channel research and providing an overview of the state of the art of this research area considering its interdisciplinary nature. This paper thus supports researchers looking to holistically comprehend, prioritise and use the underpinning literature central to the phenomena of omni-channel retailing. For practitioners and academics alike, the findings can trigger and support future research and an evolving understanding of omni-channel retailing.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 11 September 2018

Shadma Shahid, Faheem Ahmed and Uzma Hasan

India accounts for the third-largest Muslim population in the world after Indonesia and Pakistan. The previous studies about halal consumption have focused on the “food and money…

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Abstract

Purpose

India accounts for the third-largest Muslim population in the world after Indonesia and Pakistan. The previous studies about halal consumption have focused on the “food and money industry” only. Muslim consumers are prohibited from using alcohol, pork and other items in any form; the rising awareness among Muslims has led to the rapid growth in demand of halal cosmetic products around the globe. This paper aims to present a framework of halal consumers’ purchase and explores the factors that Indian consumers consider while buying halal cosmetics.

Design/methodology/approach

The authors carried out qualitative research (focus group discussion and in-depth interviews) in Delhi, Mumbai and Hyderabad to gain deeper insight from the respondents.

Findings

The study found that religiosity and increasing awareness about halal products acts as an influencer for individuals’ halal products consumption along with halal certification and growing education level of Muslim consumers.

Originality/value

The paper has been developed based on the original research work carried out among the halal Muslim consumers in the major Muslim population in metropolitan cities of Hyderabad, Mumbai and Delhi over the past year.

Details

Journal of Islamic Marketing, vol. 9 no. 3
Type: Research Article
ISSN: 1759-0833

Keywords

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