Abstract
New opportunities and challenges forced by the ever-increasing importance of the online channel have arisen for retailers. The retailing industry is moving to a new phase, in which the distinctions between traditional and online channels disappear, namely omni-channel (OC) retailing. At the same time, the awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers. The new challenge is to understand how multiple channels can be synergistically managed to provide a seamless customer experience, taking an economic and environmental perspective simultaneously. Retailers need to define the distribution configuration for serving the online demand, making decisions on the integration level between online and traditional channels. In this paper, we developed an assessment model of the operational costs and greenhouse gas emissions for three distribution configurations in OC retailing. The model was also applied to a real case operating in the consumer electronics industry. Results highlighted that the search for synergies between online and traditional flows in both warehouse and transport activities is a key factor for the economic and environmental sustainability of OC systems.
Highlights
Retail is experiencing a phase of substantial change
The awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers [6]
The present study aims at contributing to the previous literature on logistics in OC retailing by developing a model to compare multiple distribution configurations in terms of operational costs and environmental impact
Summary
New opportunities and challenges forced by the growing importance of the online channel have arisen for retailers including incorporating online sales into their businesses. As the line between online and physical channels has blurred, a new approach is emerging—named omni-channel (OC)—which “aims to deliver a seamless customer experience regardless of the channel” [2]. OC retailing allows coordination among channels and lets both customers and companies take full advantage of all the channels opportunities [3,4]. From an MC context, an OC strategy considers the integration of business processes and the synergetic management of multiple channels [5]. The awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers [6]. The ‘last mile’ of e-fulfilment is well recognized as one of the most costly and polluting parts of the supply chain [7]
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