Ship-from-store omnichannel using a 4pl digital platform

Abstract

Goal: This research aimed to simulate a ship-from-store operation process from an omnichannel retailer. Based on this we proposed a conceptual model orchestrated through a 4PL. Through the results evaluated by performance indicators in the simulation, computational results of using the approach in a real case can be added to decision-making and the literature. Design / Methodology / Approach: This paper comprises the collection of sales and logistics data from a retailer for developing a computer simulation using R programming language, so that the ship-from-store strategy is evaluated. Data from an omnichannel retailer supported the development of two scenarios: the first represent retailer's current praxis; in the second, the logistics orchestration model is applied. The analysis considers two performance indicators: freight price and freight time. Results: The results demonstrate that after adopting the ship-from-store strategy the omnichannel retailer can reduce the freight price by up to 60%. Regarding the delivery time, a reduction of up to 8 days is envisioned. These reductions positively impact the customer experience in the online channel, increasing its attractiveness. Limitations of the investigation: The limitations of the research are based on a logistics orchestration model for a retailer that is omnichannel and has several stores within its national territory with stock. This stock is sufficient to implement a ship-from-store process in this retailer. Practical implications: This retailer, by applying the method, is able to achieve better customer rewards. In the same way, it manages to make the online channel more attractive at the lowest cost and in the shortest time. This retailer is also able to use new technological resources through a 4PL. This serves as a technological tool for the logistics orchestration operation. Originality / Value: An original computer simulation for a 4PL digital platform orchestrating the ship-from-store strategy in omnichannel retailing is presented.