E-fulfillment and multi-channel distribution – A review

Abstract

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricksand-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering. E-Fulfillment and Multi-Channel Distribution -A Review AbstractThis review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricks-and-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.

Consumer-driven e-commerce

“…The mode of delivery can be in-sourced (using retailer's own vehicle fleet), outsourced to a third-party logistics provider (3PL) (Boyer and Hult, 2005), or crowd-sourced using independent contractors (Wang et al, 2016). When selecting a distribution channel, retailers need to trade-off between fulfilment capabilities, inventory levels , product availability and variety (Agatz et al, 2008), transportation cost (Rabinovich et al, 2008), and responsiveness (Chopra, 2003). The nearer the picking site is to the consumer segment, the more responsive is the channel.…”

“…operations research), the focus of this review led us to primarily consider how scholars conceptualise LML distribution structures and apply theoretical variables to LML design through quantitative, qualitative, or conceptual approaches, rather than through mathematic-based models. The mathematic-based model literature focuses on the development of stylised and optimisation models in areas of multi-echelon distribution systems, vehicle routing problems (Savelsbergh and Van Woensel, 2016), buy-online-pick-up-in-store services (Gao and Su, 2017), pricing and delivery choice, inventory-pricing, delivery service levels, discrete location-allocation, channel design, and optimal order quantities via newsvendor formulation for different fulfilment options (Agatz et al, 2008), amongst others. These studies typically employ a series of assumptions to simplify real-world operations in order to provide closed-form or heuristic-based prescriptive solutions (Agatz et al, 2008;Savelsbergh and Van Woensel, 2016).…”

“…Hitherto, existing studies provide limited or no guidance on how contingency variables influence the selection of LML configurations (Agatz et al, 2008;Fernie et al, 2010;Mangiaracina et al, 2015;Lagorio et al, 2016;Savelsbergh and Van Woensel, 2016). Our paper addresses this knowledge deficiency by reviewing the disparate academic literature to capture key contingency and structural variables characterizing the different forms of last-mile distribution.…”

“…Some papers focused on specific areas, such as the evolution of British retailing (Fernie et al, 2010) and distribution network design (Mangiaracina et al, 2015), whereas others discussed several topics at once (Agatz et al, 2008;Lagorio et al, 2016;Savelsbergh and Van Woensel, 2016). Narrowly focused papers identified limited LML structural types or variables influencing distribution network design, while more broadly focused papers examined wider issues in urban, city, or multichannel logistics.…”

An Empirical Analysis of Customer Experience in E-Business Supply Chain

“…For instance, Brand-fulfilled and Seller-fulfilled, Cash-onDelivery, Order Cancellations, Tracking facilities, Convenient return policies have all been introduced by the e-businesses in the recent years as a response to the customer requirements. This agility calls for a responsive supply chain at the backbone of the e-business with all the information networks with real-time inventory status, demand schedules and shipment schedules in place that can both fulfil orders and replenish inventory in a seamless fashion (Agatz, Fleischmann, & Van Nunen, 2008).…”