Economic Performance and Customer Expectation in e-Fulfillment Systems: A Multi-Channel Retailer Perspective

Abstract

Store-based retailers are increasingly opening an additional online sales channel and becoming multi-channel retailers. Moreover, formerly pure online retailers are opening stores or physical pick-up points to allow their customers physical interaction and product pick-up. The integration of these different channels raises the question of how to redefine the operations and the strategic marketing elements because the two channels have different constraints and require different competencies. This multi-channel retailing has a major effect on operations and supply chain management. Order fulfillment for customers using the different sales channels is a key challenge, and customers are directly affected by the performance of this process. In this article, four e-fulfillment systems are identified according to the locus of order preparation (distribution center or in-store) and the means of delivery to the customer (home delivery or pick-up by the customer). Based on a literature review in supply chain management and in marketing, five economic performance and four customer expectation indicators are identified. The differences between the four e-fulfillment systems based on these indicators are examined from theoretical and empirical points of view relying on eight semi-structured interviews with supply chain managers, directors of points of sale, and senior operations managers of French retail companies.