Abstract
The supply chain in the new retail context demands higher requirements on the price, service, and logistics level. It is very important to seek the coordination among the optimal price, service level, and logistics level. In this paper, we propose the coordination of pricing, the service level, and delivery time of a new retail supply chain composed of one product supplier, one platform service provider, and one logistics provider. Firstly, the profit function mode of product pricing, platform service level, and logistics distribution level that influence the consumers’ demand is constructed in two modes, namely, the centralized and decentralized decision mode. Then, we calculate and compare the optimal product price, the optimal platform service level, the optimal delivery time, and the profit of each member of the supply chain from both decision modes. We discovered that cooperation improves the service level, logistics level, and the income of each member of the new retail supply chain. Therefore, we propose a novel mode called the coordination mode as a strategy for the supply chain based on the combination contract. We performed a numerical analysis to demonstrate the feasibility and effectiveness of the coordination contract.
Highlights
Since 2015, the physical retail enterprises have been developing online markets, while the traditional e-commerce enterprises have been expanding in the offline channels. e retail giant Walmart has acquired five e-commerce enterprises, including Jet.com and ShoeBuy, since August 2016 to establish its online retail layout
To analyze the cooperation of online, offline, and logistics under the concept of the new retail supply chain, we considered the new retail supply chain to be composed of product suppliers, platform service providers, and logistics providers, compared and analyzed the optimal pricing, service level, and delivery time decisions of each agent under centralized decision and decentralized decision mode, and established a combination contract to coordinate the cooperation among the product suppliers, the platform service providers, and the logistics providers
We want set up effective coordination methods to make the product suppliers optimize the product price, the platform service providers improve the platform service level, and the logistics providers improve the distribution service level
Summary
Since 2015, the physical retail enterprises have been developing online markets, while the traditional e-commerce enterprises have been expanding in the offline channels. e retail giant Walmart has acquired five e-commerce enterprises, including Jet.com and ShoeBuy, since August 2016 to establish its online retail layout. Jack Ma coined the term “new retail” to describe this phenomenon at the cloud conference of Alibaba in October 2016 He pointed out that there will be no e-commerce in the future and that offline and online marketing should be combined with logistics to create an effective method, called new retail. E new retail supply chain is mainly composed of product suppliers, platform service providers, and logistics providers. New retail is a novel concept; it still holds the essence of retail, namely, to provide consumers with valueadded products and services efficiently, the basis of which is the continuous upgrade and reconstruction of the supply chain. To understand the role of each participant of the new retail supply chain, we simulated the product supplier, the platform service provider, and the logistics provider as three independent entities and assigned them on the roles of online, offline, and logistics.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
