Performance evaluation of Omni channel distribution network configurations using multi criteria decision making techniques

Abstract

The Omni channel (OC) is an integrated fulfillment process of satisfying the demands from multiple channels such as a physical store, call center, mail, online and mobile applications with seamless customer experience. The growth of innovative technologies and mobile platforms attracts customers to online channels. The retail industries are facing a challenging task of managing the online demand along with traditional demand, which leads to the origin of the Omni channel. The objective of this study is to identify the four different distribution network configuration of OC and evaluating their performance using different multi-criteria decision making (MCDM) techniques such as analytical hierarchy process, fuzzy analytical hierarchy process and technique for order preference by similarity to ideal solution with respect to cost and service factors. The results obtained through different MCDM techniques show that integrated warehouse and transport—delivery from all Nodes configuration performs better than other configurations. A sensitivity analysis is performed to examine the stability of priority ranking. Also gap analysis is carried out to improve the level of certainty in decision making. This research article is the first of its kind, which applies the MCDM techniques for evaluating the performance of Omni channel distribution network configurations.