Configuring Retail Fulfillment Processes for Omni-Channel Customer Steering

Wollenburg, Johannes; Holzapfel, Andreas; Hübner, Alexander; Kühn, Heinrich

doi:10.1080/10864415.2018.1485085

Cited by 103 publications

(97 citation statements)

References 41 publications

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“…Responding to the call by Wollenburg, Holzapfel, Hübner and Kuhn (2018), this study investigates the back-end IS in more depth. On the material-handling node level, the respondents point out that the current logistics IS (e.g.…”

Section: Discussionmentioning

confidence: 99%

“…There is, however, a lack of research focusing on the interface between the nodes and the network, and few studies have investigated the trends, implications and challenges related to logistics IS in omni-channels (Gallino and Moreno, 2014). There is also a need to investigate more in-depth the back-end requirements in material-handling nodes, such as ERP and WMS integration (Wollenburg, Holzapfel, Hübner and Kuhn, 2018).…”

Section: Information Systems For Omni-channel Logistics and Warehousingmentioning

confidence: 99%

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Exploring trends, implications and challenges for logistics information systems in omni-channels

Kembro

Norrman

2019

IJRDM

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Purpose-The purpose of this paper is to explore the current trends, implications and challenges of information systems (IS) related to omni-channel logistics. Design/methodology/approach-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. Findings-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. Research limitations/implications-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. Practical implications-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. Originality/value-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-channelsan 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.

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Section: Discussionmentioning

confidence: 99%

Section: Information Systems For Omni-channel Logistics and Warehousingmentioning

confidence: 99%

Exploring trends, implications and challenges for logistics information systems in omni-channels

Kembro

Norrman

2019

IJRDM

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“…In addition, French customers are much more used to driving a longer distance to the next super-market [Nielsen, 2015]. Even in markets where the home delivery of groceries is already widespread (e.g., the UK), retailers are thinking about steering customers towards pick-up solutions because this has major cost advantages (see also Wollenburg et al [2016]). However, this logistics network is not appropriate when online order volume is low due to the high costs of investing in pick-up locations and the substantial inventory costs because of the risk of waste and inventory obsolescence in decentralized locations.…”

Section: Type [12]: Additional Solo Pick-up Points For Online Ordersmentioning

confidence: 99%

“…Logistics literature mostly focuses on online grocery fulfillment (e.g., Kotzab and Madlberger [2001]; Teller et al [2006]; Grant et al [2014]; Dreyer et al [2015]) and crosschannel fulfillment for non-food retailing (e.g., Agatz et al [2008]; Hübner et al [2015Hübner et al [ , 2016a; Ishfaq et al [2016]), but only on cross-channel grocery retailers to a very limited degree (e.g., Colla and Lapoule [2012]). Management literature shows that the organizational transformation to omnichannel retailers has a positive effect on firms' sales growth (e.g., Cao and Li [2015], Wollenburg et al [2016]). Most retailers are therefore merging their channels at least to some extent [Hübner et al, 2016c].…”

Section: Introductionmentioning

confidence: 99%

From bricks-and-mortar to bricks-and-clicks

Wollenburg

Hübner

Kühn

et al. 2018

IJPDLM

Self Cite

158

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Purpose-The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the general understanding of such bricks-and-clicks logistics systems for grocery is still limited, the purpose of this paper is to analyze the internal logistics networks used to serve customers across channels by means of an exploratory study with retailers from different contexts. Design/methodology/approach-A total of twelve case companies from six European countries participated in this exploratory study. Face-to-face interviews with managers were the primary source for data collection. The heterogeneity of our sample enabled us to build a common understanding of logistics networks in grocery retailing on multiple channels and to understand the advantages of different warehousing, picking, internal transportation and last-mile delivery systems. Findings-Bricks-and-mortar grocery retailers are leveraging their existing logistics structures to fulfill online orders. Logistics networks are mostly determined by the question of where to split case packs into customer units. In non-food logistics channel integration is mostly seen as beneficial, but in grocery retailing this depends heavily on product, market and retailer specifics. The data from our heterogeneous sample reveals six distinct types for cross-channel order fulfillment. Practical implications-Our qualitative analysis of different design options can serve as decision support for retailers developing logistics networks to serve customers across channels. Originality/value-The paper shows the internal and external factors that drive the decisionmaking for omni-channel logistics networks for previously store-based grocery retailers. Thereby it makes a step towards building a contingency and configuration theory of retail networks design. It discusses in particular the differences between grocery and non-food omni-channel retailing, lastmile delivery systems and market characteristics in the decision-making of retail networks design.

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“…A similar exercise involving multichannel retailers is taken up by Hübner et al (2016) where they offer a set of guidelines to effectively manage a multichannel retailer's transition towards developing omnichannel fulfillment capabilities. Some other operational aspects from an omnichannel contexte.g., effective online and offline information delivery (Gao & Su, 2017b), configuring omnichannel fulfilment process (Wollenburg et al, 2018), self-order technology (Gao & Su, 2018), buyonline-and-pick-up-in-store (Gao & Su, 2017a), crosschannel integration (Y. Li et al, 2018;Shen et al, 2018), sources of online-offline synergies and tensions (Wiener et al, 2018), dynamic pricing of inventories (Harsha et al, 2019), and product placement strategy (Gu & Tayi, 2017) have also been studied in detail in the existing literature.…”

Section: Literature Reviewmentioning

confidence: 99%

Look Before You Leap: Economics of Being an Omnichannel Retailer

Saha

Bhattacharya

2020

OSCM: An Int. Journal

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This paper investigates how the market gets segmented when an omnichannel retailer enters a market hitherto served by non-omnichannel retailers. The added value derived from the omnichannel flexibility is expected to draw more customers to an omnichannel retailer, luring them away from the incumbent non-omnichannel peers. However, the customers are expected to be heterogeneous in their valuation of the omnichannel flexibilities offered. Also, since acquiring omnichannel flexibility entails additional costs for service integration, the omnichannel aspirant is expected to charge a higher price from the customers than its non-omnichannel competitors. Our model considers both these factors, and derives analytical expression for the expected market share of the omnichannel retailer as a function of the price charged by the non-omnichannel peers, the extent of flexibility provided, and the cost of providing the same. Also, given the cost of service integration, we estimate the level of flexibility that an omnichannel retailer must offer if it wants to acquire a specific market share. The findings indicate that the associated integration cost imposes a restriction on the maximum market share an omnichannel entrant can aspire to capture.

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Configuring Retail Fulfillment Processes for Omni-Channel Customer Steering

Cited by 103 publications

References 41 publications

Exploring trends, implications and challenges for logistics information systems in omni-channels

Exploring trends, implications and challenges for logistics information systems in omni-channels

From bricks-and-mortar to bricks-and-clicks

Look Before You Leap: Economics of Being an Omnichannel Retailer

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