Omni-channel Logistics Research Articles

Optimising product swaps in an urban retail network with uncertainty

City Logistics aims to achieve higher levels of consolidation in vehicles that typically requires exchanging loads at intermediate locations. Swapping goods between retail stores in urban areas due to stock shortages is a common problem arising in for example, omni-channel logistics. This study develops a two-stage stochastic program for designing a product swap network. The upper stage of the program deals with the strategic decision of locating transhipment nodes, while the lower stage finds the optimal operational vehicle routing solution. Uncertainties in demand, traffic conditions, and vehicle loading efficiency are considered. Numerical studies evaluate various solution procedures and demonstrate the importance of considering stochasticity and the value of the two-stage model.

Role of bigdata analytics in improving drivers of omni-channel retailing for improving logistics experience

PurposeThe objective of this research is to evaluate and rank the factors influencing omnichannel (OC) logistics, while also investigating the significant impact of big data analytics in improving these drivers of OC logistics.Design/methodology/approachUsing exploratory sequential mixed method design, an in-person interview survey was conducted to identify and stratifies the enablers of OC retailing. These interviews were supplemented with a case study in an apparel firm to prioritise the enablers of OC logistics. Further, a survey was conducted to understand the role of big data analytics in improving drivers of OC logistics as well as the role of Individual capability and organisational capability in big data usage for omnichannel retailing.FindingsFindings represent that information management is the most important driver followed by inventory management and network design for improving OC logistics. Further, significant relationship between big data analytics and drivers of omnichannel logistics has been reported.Practical implicationsThis study identifies and classifies the drivers of OC retailing relating to their level of criticality in OC logistics which will assists practitioners to prioritise their tasks for the successful development of OC logistics. The study will also help practitioners to use BDA for developing the drivers of OC.Originality/valueThe study substantiates and adds to the BDA literature by emphasising the positive role of BDA in development of OC driver and highlighting the significant role of drivers of BDA in its usage.

A bibliometric review of the omnichannel logistics literature

ABSTRACT The emergence of omnichannel logistics has led to fundamental changes in traditional e-commerce, retail, and consumer decision-making processes. Due to its crucial effects, the subject of omnichannel logistics has been frequently discussed in the literature in recent years. However, there is a need to clearly define at what level in the field of omnichannel logistics have been conducted and the themes on which they have been based. The aim of this study is to present an extensive and concise literature review on omnichannel logistics and to analyse the thematic evolution of the omnichannel logistics field. The study used bibliometric techniques to explore research trends in the field of omnichannel logistics. Employing SciMAT and VOSviewer software, the study analysed 156 articles from Web of Science journals. These research articles cover the 2016–2022 period. The analysis allowed exploring the dynamics in different years and identifying main/sub-themes. The findings highlighted the themes that are still in the maturation process. These themes are retail, service quality, omnichannel management, city logistics, warehousing, e-commerce and supply chain. This study presents a holistic picture of omnichannel logistics and introduces the themes related to retailer behavior and logistics process to the literature. Researchers can further their studies by considering prominent keywords in omnichannel logistics management. In this sense, the study offers beneficial implications for academics.In addition, the results of the study reveal the direction of the sectoral trends and the trend in the field of omnichannel logistics. In this sense, it offers a roadmap to businesses and sector employees in determining their strategies.

Winning customer satisfaction toward omnichannel logistics service quality based on an integrated importance-performance analysis and three-factor theory: Insight from Thailand

Electronic commerce (e-commerce) is one of the fastest-growing businesses in the retail sector, especially in Asia. Owing to intense competition, retailers seek to consolidate all customer touchpoints into a single channel to enhance customer shopping experience. The omnichannel has emerged as a key strategic weapon in e-commerce retail business because its adoption hinges on customer perceptions of omnichannel logistics service quality. By drawing on an integrated importance-performance analysis, and a three-factor theory framework, this study examines how customers perceive and assess this quality. A leading e-commerce retailer in Thailand was used in the empirical study. Through a comprehensive literature review, 19 omnichannel logistics service quality attributes were determined based on customer shopping journeys. The attributes were categorized into four quadrants using importance-performance analysis and three-factor theory. As a result, attributes in each quadrant required different management schemes. Furthermore, performance benchmarking in customer satisfaction with omnichannel logistics service quality attributes between the case study and its best competitor was conducted using a performance ratio analysis. This study contributes to the omnichannel logistics literature in terms of assessing customer satisfaction; for e-commerce retail businesses, it provides insights into how managers can win customer satisfaction in the omnichannel logistics competition. Other business sectors that aim to improve customer satisfaction can also apply the framework proposed herein.

Research on the Effects of Digital Supply Chain Transformation on the Operational Performance of Retail Enterprises

In the face of the upgrading of consumption structure and the sudden change and development of the economy, China’s retail industry has also shown an overall positive industry trend. This paper focuses on the major premise of digital transformation, discusses the status quo of retail enterprises, and analyzes the opportunity and necessity of the digital transformation of the supply chain driven by the development of digital technology and the “dual circulation” national policy. Through literature reading, many scholars have also realized the important role of digitization in improving supply chain capabilities. This paper first analyzes the current situation of Chinese retail enterprises and expounds on the significance of digitalization. Use the literature to study the role of digital technology on the development of retail enterprises and analyze the problems existing in the supply chain of retail enterprises under the background of digitalization. Research shows that transformation pain points can be improved through the intervention of consumer-centric supply chain value, digital infrastructure, trust mechanisms, omnichannel logistics platforms, and national policy support. As a result, this study holds that integrating digital technology may significantly boost retail businesses' performance as well as their fundamental competitiveness.

Impact of Logistics Trends on Freight Transport Development in Urban Areas

City logistics is subject to constant development, generated by new logistics trends and high customers’ expectations. With the aim of creating an effective, acceptable, and sustainable city logistics policy, it is therefore essential to understand logistics trends and their expected impact on the development of urban freight transport in the future. In this paper, we explore and compare the expectations of public authorities, business, and academia regarding the short-, medium-, and long-term impacts of different logistics trends on urban logistics. Following a literature review, the expert survey was used to assess the expected impact and time horizon. According to the respondents, “e-commerce”, “automated vehicles”, “electric vehicles”, “grey power logistics”, “omni-channel logistics”, and the “desire for speed” will have the greatest impact on urban freight transport in the future. An interesting observation concerns some differences of opinion between public and private stakeholders. In general, the business community believes that the identified trends will have a greater impact on urban logistics in a shorter period of time, while public authorities believe that the mentioned trends will have a less strong impact on urban logistics in a longer time scale. This shows the need for more active collaboration between them in the policy-making process.

A systematic literature review on e-commerce logistics: towards an e-commerce and omni-channel decision framework

ABSTRACT e-Commerce is the fastest-growing sales channel, while omni-channel retailing is becoming the new retailing standard. Omni-channel logistics is an essential complex aspect of omni-channel retailing, especially considering the increased consumer demand for seamless shopping experiences. This systematic literature review aims to synthesize the contemporary e-commerce logistics literature and to develop a logistics decision framework. This review shows how the focus of e-commerce logistics literature has evolved to multi-channel logistics, and lately to omni-channel logistics. The recent boom in omni-channel logistics publications highlights the importance of logistics in omni-channel retailing with increased complexity and a myriad of logistics design options. An omni-channel logistics decision framework covering 43 decision elements within supply and internal distribution, last mile consumer steering, last mile back-end fulfilment, last mile delivery, and reverse logistics is created by synthesizing 373 articles. This review identifies research opportunities and encourages researchers to complement existing narrower studies with broader empirical studies focusing on the elements’ interplay, and configuration studies associated with firm performance. The framework and future research avenues support retail executives in designing logistics, in decision-making and in developing strategies.

Sorting out the sorting in omnichannel retailing

AbstractThe increasing complexity of today's omnichannels has led to challenges with logistics efficiency and customer utility. In this paper, we show how retailers address these challenges by sorting goods at multiple points across the logistics network and inside each material‐handling node. As contemporary research on the omnichannel sorting phenomenon is limited and fragmented, we conduct an abductive multiple case study to elaborate omnichannel logistics and transvection theory. It explains why retailers, depending on their omnichannel context, prepone some sorting activities upstream and postpone others to handle trade‐offs between customer utility and logistics efficiency. An artifact, including structured terminology, six sorting aspects, and an iconographic platform, is constructed to support the analysis of the extent, variety, and complexity of sorting at both the strategic network level and the operational material‐handling node level. We conclude by submitting 10 theoretical and actionable design propositions that support decision making in (re)designing omnichannel logistics networks and offer avenues for future research.

Understanding the transformation toward omnichannel logistics in grocery retail: a dynamic capabilities perspective

PurposeOmnichannel (OC) logistics is undergoing a significant transformation in grocery retail. To shed light on this important but underresearched phenomenon, this study aims to investigate how grocery retailers transform and why some are more successful in transforming OC logistics.Design/methodology/approachApplying dynamic capabilities as a theoretical lens, a multiple case study was conducted with three grocery retailers at different stages of their transformation.FindingsSix microfoundations of dynamic capabilities were identified as critical for enabling OC transformation. The study highlights important differences in dynamic capabilities, which can be attributed to investment decision-making, governance and creating co-specialization. Finally, the authors propose seven propositions for contextualization of dynamic capabilities for OC transformation in grocery retail.Originality/valueThis study is original by contextualizing microfoundations in grocery OC retailing. The study contributes to theory and practice by showing the value of dynamic capabilities, stressing the important interrelation among a retailer's governance structure, leadership and capability to make investment decisions, increase logistics coordination and co-specialize.

Sustainable Supply Chain Finances implementation model and Artificial Intelligence for innovative omnichannel logistics

Whilst there is significant research on supply chain finance, there is little information about its application to the omnichannel logistics. Hence, the primary adopted goal is to identify the ways of supporting the implementation and development of SSCM with use of Artificial Intelligence and developed SSCF implementation model. Potential paths to improve supply chain’s sustainability based on SSCF and AI are presented on the example of two internationally operating companies from the clothing industry using omnichannel. An exploratory case study has been conducted. Three methods were used to gather data: document/reports analysis, direct and participative observation and unstructured interviews. By implementing AI, supply chain leaders can more easily improve all key dimensions of sustainability, especially in the strategic field, based on strengthening partnership and cooperation with suppliers offering value-added materials that guarantee a competitive advantage. The paper contributes to the limited existing literature on SSCF and AI and disseminates this information to provide impetus, guidance and support toward increasing the productivity, efficiency, consistency and quality of service.

Latest Advancement of Technologies in Supply Chain Management: An Overview

Supply chain management (SCM) involves an interconnected structure of facilities that produces elements or compounds for transforming into a semifinished compound. After completion, the final compound is delivered to customers via a distribution system. Owing to ever-changing customer demands, increasingly efficient and resilient SCM is necessary, which requires support from the latest technologies. Therefore, this paper presents an overview of the latest technologies in SCM and logistics. The management of a supply chain and role of the different actors involved differ from industry to industry and company to company. Consequently, SCM has become a crucial issue to manufacturers, professionals and researchers. The latest technologies identified in this paper include radio frequency identification, vehicular ad hoc networks, the Internet of things, robotics and artificial intelligence and blockchain. Moreover, the application of the aforementioned technologies in different industries and systems is discussed to understand how the technologies impact practitioners. Although not discussed thoroughly, other recent technology trends in SCM and logistics, such as machine learning, autonomous vehicles/drones, advanced analytics, cloud logistics, supergrid logistics, anticipatory logistics, omnichannel logistics and additive manufacturing (3D printing), are also highlighted in this paper. By understanding the advancements in SCM technology, the possible direction of future innovations can be effectively planned and articulated.

Dronology and 3D Printing as a Catalyst for International Trade in Industry 4.0.

The article reveals the content of Industry 4.0 technologies in the subsystems of international trade. The destructive type of innovations of the fourth industrial revolution on traditional spheres of trade is defined. The types of modern innovations related to the technologies of Industry 4.0 and form competitive advantages in successful global brands are identified and characterized, they are reviewed for the presence of common features inherent in its technologies and innovations in general. The influence of Industry 4.0 on the stages of introduction of the innovation process in international trade is analysed. It is established that at the stage of experimental implementation of innovations, omnichannel logistics, drones, and 3D printing have a high level of influence, which are trends in the miniaturization of the economy and the concept of «smart enterprise». An analysis of the impact of the trend of changes from Industry 4.0 innovations in international trade through the impact on consumer behavior and the functioning of business models of enterprises. The expediency of introduction of drones in the aspect of expansion of sales channels and receipt of goods on the basis of the omnichannel approach of increase of volumes of the international trade is proved. Existing and perspective spheres of application of drone logistics are analysed. A positive effect in terms of optimizing the cost of maintaining employees through the use of drones on the example of warehousing and fast delivery of goods to order. The problem of large-scale introduction of drones to exacerbate the issue of replacing workers in entire industries with artificial intelligence and the need to learn new professions is outlined. The influence of additive production on international trade by introduction of 3D printing technology is analysed, the spheres of its application and consequences of introduction are defined. The reality of the scenario forecast of development of 3D printing and its influence on subsystems of the international trade, chains of delivery of the goods, formation of stocks of raw materials and materials is considered. The possible consequences of the application of 3D printing technology for the field of intellectual property are described. It is proved that the key catalysts of Industry 4.0 at the level of international trade are innovations in the form of attracting drones to logistics supply and marketing systems and inventory optimization by expanding the scope of 3D reproduction techniques.

Investigation and Analysis of Omnichannel Logistics Models: A Study in The Electronic Retail Industry in Indonesia

Investigation and Analysis of Omnichannel Logistics Models: A Study in The Electronic Retail Industry in Indonesia

Omnichannel logistics network design with integrated customer preference for deliveries and returns

This paper proposes a mixed integer program (MIP) for the network design problem of a parcel carrier that manages online orders from omnichannel retailers. The network includes several types of facilities, such as city distribution centers, intermediary depots, parcel offices, as well as collect channel points, such as automated parcel stations (APS), stores or kiosks. The model formulation takes into account the influence of these collection points on consumer choice and the maximum distance customers are willing to walk to reach them. Realistic transportation costs are also considered, including detailed long haul costs and delivery costs in an area. The transportation costs inside an area are estimated via the Continuous Approximation proposed by Newell (1971) and Newell (1973), which results in a simpler problem than a location-routing problem, however, at the cost of losing linearity. For a special case of the problem, we propose a heuristic that, in our experimental setting, is on average 42.5 faster than the overall MIP and gives solutions within 1.02% of the optimum. Finally, we use the model to discuss the network design of a Spanish parcel carrier operating in Madrid.

Exploring trends, implications and challenges for logistics information systems in omni-channels

PurposeThe purpose of this paper is to explore the current trends, implications and challenges of information systems (IS) related to omni-channel logistics.Design/methodology/approachAn exploratory survey study is conducted with 23 Swedish retail companies transforming to omni-channel logistics. The study investigates the retailers’ current situations regarding logistics IS as well as their perceptions of the future development.FindingsFrom the perspective of leading Swedish retailers, omni-channel requirements drive the implementation of new IS to support effective and efficient material handling across the network and in the respective nodes. The shifting roles and increase in the number of handlings nodes will require flexible IS platforms that can support multiple flows and integrated inventory. The major increase in the implementation of new, critical functionalities is related to real-time, multi-criteria decision making on order allocation to different handling nodes. More advanced IS functionality is also required in material-handling nodes to support the increased degree of automation and continuous improvements with the aim to shorten order-to-delivery lead times. A number of challenges are identified that must be addressed during the transformation to omni-channel logistics, especially related to the growing complexity and decentralization of networks, tougher lead-time requirements and larger product assortments.Research limitations/implicationsTo support further theory development, 11 propositions related to trends and a schematic framework conceptualizing implications and challenges are submitted for testing in future research.Practical implicationsThe study highlights several aspects related to logistics IS that are important for practitioners to consider as they undergo the transition to omni-channels. It provides insights into IS functionalities that are likely to grow in use and criticality for supporting material handling and inventory management in increasingly complex and decentralized networks. In particular, the authors stress the need to implement functionality that works across previously separated handling nodes and decision areas. Managers can also use the propositions to reflect on what the near future holds and as input for their own scenario analyses.Originality/valuePrevious research has primarily focused on technology that supports the front-end customer experience. This study is original in that it explores the trends, implications and challenges for logistics IS in omni-channels – an area that has not been explored in detail previously. It also studies both perceived and expected changes over time related to the transformation toward omni-channel logistics.

Smart locker bank design optimization for urban omnichannel logistics: Assessing monolithic vs. modular configurations

This paper presents optimization based design methods for smart locker banks in the context of omnichannel business-to-consumer logistics and supply chains. It explores two design approaches currently used in the industry: fixed-configuration locker bank and modular tower based locker bank. Contributions include optimization models for both design approaches, providing empirical evidence of their performance, synthesizing strategic insights and identifying avenues for further research, notably further exploiting the concepts and principles of Physical Internet and Hyperconnected City Logistics.

Adapting warehouse operations and design to omni-channel logistics

Purpose The purpose of this paper is to increase the understanding of how warehouse operations and design are affected by the move toward integrated omni-channels. Design/methodology/approach A structured literature review is conducted to identify and categorize themes in multi- and omni-channel logistics, and to discuss how aspects related to these themes impact and pose contingencies for warehouse operations and design. Findings The review revealed a lack of focus on warehouse operations and design in multi- and omni-channels. Instead, most articles published in scientific journals discuss changes in consumer demand and implications for the network level, concerning aspects such as the organization and management of material and information flows, inventory management, resources, actors and relationships. Ten themes in omni-channel logistics were identified and grouped into two categories: the value proposition and channel management; and the physical distribution network design. The themes and related aspects have implications for warehousing, and by combining these with general warehousing knowledge, the authors derive a comprehensive and structured agenda is derived to guide future research on omni-channel warehousing. Research limitations/implications This paper outlines a research agenda, including detailed research questions, for advancing the theory on warehouse operations and design in omni-channels. Practical implications The agenda can inspire practitioners in their work to understand the upcoming challenges and address relevant issues in omni-channel warehousing, taking into consideration its interdependence with value proposition, channel management and network decisions. Originality/value This is the first comprehensive review focusing on and synthesizing available literature on omni-channel warehousing. This topic has until now received limited coverage but is of increasing importance to scholars in the field.

Omni-channel logistics special issue

Omni-channel logistics special issue

Empirical Studies in Multi- and Omni-Channel Retail Operations and Logistics - A Structured Literature Review

Purpose - This paper structures and reviews empirical contributions in multi- and omni-channel retail operations and logistics that have been published until the year 2015 in order to develop an agenda of empirically and theoretically grounded research in this area.Design/methodology/approach - The methodological basis of this review is a document analysis conducted as a content analysis based on the recommendations of Seuring et al. [2005]. Three dimensions and subsequent categories are developed inductively from the selected material which is grouped accordingly.Findings - The selected papers for the review are especially concerned with questions regarding the integration or separation of channels, the various subsystems in front- and back-end logistics on multiple channels, and criteria for performance evaluation. However, a clear route towards logistics channel integration at the individual development stages of retailers and, although crucial, the differentiation of product properties (e.g., food and non-food) is oftentimes missing.Research limitations/implications - One limitation of this review is that only academic papers in empirical multi- and omni-channel logistics topics were included thus excluding other fields of business and management (e.g., marketing, service management) or other methodologies (e.g., modeling, conceptual work).Originality/value - This paper provides both academics and practitioners with an overview of research that has been conducted so far and moreover points to the areas that have not been researched before. Thus it contributes to theory development in the area of empirical retail operations and logistics.