Delivery efficiency and supplier performance evaluation in China’s E-retailing industry

Abstract

This paper focuses on overall and sub-process supply chain efficiency evaluation using a network slacks-based measure model and an undesirable directional distance model. Based on a case analysis of a leading Chinese B2C firm W, a two-stage supply chain structure covering procurementstock and inventory-sale management is constructed. The research shows overall supply chain inefficiency is attributable to procurement-stock conversion inefficiency. From a view of operations model, the third-party platform model is more efficient than a “shop in shop” self-operated model. However, the self-operated mode performs better in product categories such as computer & Office & digital, food & drink and healthy products due to these products’ delivery characteristics and consumers’ shopping habits. In the logistics selection, most e-retail players are inclined to choose the hybrid model of 3PL and self-operated logistics with the product category extension from vertical model to all-category model. These findings may help managers improve supplier-buyer relationship and strengthen supply chain management. This research offers a new explanation regarding the failure of e-retail supply chain.