Consumer direct delivery of packages ordered over the Internet has grown at well over 25 % per year over the past 10 years and now accounts for over $100 billion in sales in the U.S. alone. Retailers have rushed to capitalize on what has commonly been labeled multi‐channel retailing, while logisticians have faced a challenge in devising efficient methods of delivering billions of packages to customer homes. Inefficient deliveries in this “last mile” of the supply chain have led to numerous business collapses as well as a substantial increase in delivery costs.
We present a study which examines the effect of two factors (customer density and delivery window length) on the overall efficiency of the delivery route. Data are collected based on empirically derived settings from interviews with several practicing managers. Results provide insight for logistics and marketing managers who must balance customer desires for convenience with business desires for efficiency. The data show that offering a 3 hour delivery window is 30–45% more expensive than offering unattended (9 hour delivery window) delivery. The results provide a tool for managers to address the tradeoffs between various settings for the independent variables (customer density and delivery window length) and the overall route efficiency.
The objectives of this research are first to empirically replicate Advanced Manufacturing Technology (AMT) utilization taxonomies identified in foregoing research, second to investigate the relationship between patterns of AMT utilization and manufacturing capabilities attainment, and third to explore differences in context, and performance across AMT groups. Theories of performance frontiers and capability progression provide the basis for our hypotheses. Data were collected from 224 U.S. manufacturing plants in industries considered to have potential utilizations of AMTs. A cluster analysis of the data yields a solution that closely resembles a previous AMT utilization taxonomy, including four groups labeled, respectively, as Traditionalists, Generalists, High Investors, and Designers. Significant manufacturing capability differences across these four groups indicate that plants that utilize a broader scope of AMTs enjoy a greater breadth of manufacturing capabilities. The implied capability attainment pattern is consistent with cumulative capability theory. However, the results suggest that cost capability is not included in the capability mix when broad‐based AMT utilization is the enabler of capability gains. A post hoc exploration of the AMT groups indicates significant differences in performance across the groups. Collectively, the results extend prior research by providing added insights into the possible rationale and impact of AMT utilization patterns.
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