Abstract:The negative impact of the automotive industry on climate change can be tackled by changing from fossil driven vehicles towards battery electric vehicles with no tailpipe emissions. However their adoption mainly depends on the willingness to pay for the extra cost of the traction battery. The goal of this paper is to predict the cost of a battery pack in 2030 when considering two aspects: firstly a decade of research will ensure an improvement in material sciences altering a battery's chemical composition. Secondly by considering the price erosion due to the production cost optimization, by maturing of the market and by evolving towards to a mass-manufacturing situation. The cost of a lithium Nickel Manganese Cobalt Oxide (NMC) battery (Cathode: NMC 6:2:2 ; Anode: graphite) as well as silicon based lithium-ion battery (Cathode: NMC 6:2:2 ; Anode: silicon alloy), expected to be on the market in 10 years, will be predicted to tackle the first aspect. The second aspect will be considered by combining process-based cost calculations with learning curves, which takes the increasing battery market into account. The 100 dollar/kWh sales barrier will be reached respectively between 2020-2025 for silicon based lithium-ion batteries and 2025-2030 for NMC batteries, which will give a boost to global electric vehicle adoption.
Purpose
The purpose of this paper is to identify in what way logistics service providers are involved in the logistics operations of omnichannel retailers. Given the importance of logistics in omnichannel retail and the complexities that it brings forth, it is unclear if the current tendency towards logistics outsourcing continues, and how logistics service providers should adapt to remain relevant in the omnichannel retail environment.
Design/methodology/approach
The research draws on both desk and field research. The authors analysed the scientific information available on omnichannel retail logistics and conducted semi-structured expert interviews with food and non-food retailers that adopt an omnichannel model.
Findings
The research demonstrates distinct differences between food and non-food retailers. While food retailers are inclined to organise fulfilment and last mile activities in-house, non-food retailers partner closely with logistics service providers. Nonetheless, the store network of non-food retailers is attracting a growing part of logistics activities, which retailers are building themselves. To sustain their relevance in the omnichannel environment and strengthen their position for the future, the authors created a competency recommendation framework for logistics service providers, in which service differentiation is proposed as a viable direction for growth.
Research limitations/implications
The research is based on insights from retailers based in the Brussels-Capital Region (Belgium) and requires further and wider testing in other contexts and geographical areas.
Practical implications
The findings have strategic importance for retailers that are developing an omnichannel retail model and logistics service providers that (aim to) serve clients and operate activities within the retail sector.
Originality/value
The research provides a holistic view of logistics in omnichannel retail by identifying insourcing and outsourcing mechanisms and developing competency recommendations to fulfilment, internal transport and last mile transport in omnichannel retail.
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