Retail Supply Chain Research Articles

LOST and Found in Walmart: Walmart's Effect on Local Option Sales Tax (LOSTs) Adoption and Sales Tax Revenue

Throughout the period of adoption of Local Option Sales Taxes (LOSTs) by local governments research has found many causes and associations for adoption and utilization of LOSTs. This research explores the impact that the rise of Large Supply Chain retailers, which expanded along much the same timeline as LOSTs, had on the adoption of LOSTs and collection of sales tax revenue. Leveraging LOST adoption along different timelines in three states and hundreds of Walmart openings, a Cox Proportional Hazard Model is used to estimate the impact a Walmart opening has on time to adoption of LOST at the county level. A Difference in Difference with multiple validity and robustness checks is used to estimate the impact on sales tax collection. Results indicate that a Walmart opening has a large impact on the hazard ratio—indicating it speeds time to adoption. Unsurprisingly, this leads to larger sales tax revenue collections by host jurisdictions.

Analysis of Green Supply Chain Construction and Driving Factors in the Context of New Retail: Case Study of JD.com

The retail industry occupies an important position in the national economy and is a fundamental industry. With the development of the Internet, retail is constantly innovating, and online retail is developing rapidly. Retail enterprises under the new retail model represented by JD.com have embarked on a new journey in the retail industry. With the further development and acceleration of industrialisation, reducing resource waste and environmental pollution has become a problem that retail enterprises must face. This paper introduces the case of JD.com in building a green supply chain in the context of new retail and analyses. It summarises the driving factors of JDs establishment of a green supply chain by combining the interdisciplinary perspectives of new retail and green supply chains. At the same time, specific case evidence is provided from the perspective of each link in the supply chain. It aims to provide multi-dimensional guidance for the green supply chain transformation of new retail enterprises, which can help improve their market competitiveness, provide better consumer experience, enhance consumer trust, and help avoid potential legal risks.

Exploring the circular last mile: reusable packaging in home delivery of food and groceries using a design science approach

ABSTRACT The market for home deliveries of food and groceries has been growing in the last years, and with it so have the associated environmental impacts: emissions from the delivery routes, energy for the cold chain and packaging waste are some of the main concerns. The purpose of this paper is to contribute with knowledge to support the development and implementation of circular retail supply chains, with focus on customer involvement and logistics operations in home deliveries of food and groceries. This study is based on a design science approach that follows three main steps: (1) development of the ‘circular delivery concept’ (i.e., the artefact), (2) field-test in real-life conditions and (3) key-learnings and implications on theoretical, managerial, and policy domains. The feedback from the actors involved in the concept (customers, production/warehouse staff, delivery drivers and e-tailer management) was collected through semi-structured interviews, observations, and workshops. Results show potential of the circular delivery concept at test, with customers and delivery drivers recognising positive aspects and a good potential from the new setting. The warehouse staff and the management board, were, however, sceptical of the concept and expressed concerns on the practicability to scale it up because of the challenges in operationalising it in the warehouse. The main barriers found in this study relate to the need to implement new processes for circular supply chains in efficient and cost-effective ways, and to get customers more actively involved and to assume their responsibilities. For the latter, the added value needs to be conveyed more clearly and pragmatically so that the customer recognises its value as obvious and clear. Managerial and policy implications were deduced, as well as theoretical implications that contribute to the theory of consumption value.

Capabilities to create new value for business sustainability: a retailer case study from Malaysia

PurposeThe lack of a direct link between business value and sustainability is a critical roadblock to truly embedding sustainability in business strategies. Before launching the sustainability journey, every organisation should answer the question: “What value would this strategy offer our organisation?” Conversely, when organisations are opportunistic toward quick profits, the negative consequences of one domain spill over to another. The desire to produce more may result in overproduction, overconsumption or environmental pollution.Design/methodology/approachTo give a complete analysis of sustainable capabilities, this study combines current theoretical understanding from past literature, followed by exploratory interviews and a thorough case study. The case study ventured into uncharted territories, unveiling an exciting new sphere of value catalysed by the mechanisms of sustainable co-creation. Additionally, it exposed thought-provoking motives driving supply chain actors’ unwavering commitment to ethical decision-making, even amidst towering challenges.FindingsOur empirical lens reveals the hidden mechanics of resource sharing and the genesis of newfound value, illuminating previously obscure corners of the sustainability field. Moreover, it sheds light on retailers striving to cultivate green retail supply chains. It delivers an actionable framework that bolsters business sustainability and fuels competitive edge, which is vital in the rapidly evolving landscapes of emerging economies.Originality/valueThis study offers insights into the sustainable value-creation mechanism in ALPHA, a Malaysian retailer, uncovering how supply chain actors’ business activities generate economic, social and environmental performance.

Adaptable solutions for retail supply chain resilience in the post-COVID-19 era

Faced with globalization and unpredictable disruptions, firms aspire to achieve resilience and sustainable recovery of their supply chain (SC) networks. However, Nigerian retail firms are faced with challenges that deter resilience in their SCs under disruptions, and to date, literature is currently non-existent that analyzes these challenges and proposes strategies for their mitigation. This study, therefore aims to identify and analyze the degree of significance of the challenges to SC resilience in Nigerian retail firms under disruptions, as well as propose strategies to mitigate them for enhancing retail SC resilience under potential disruption risks in the post COVID-19 era. Nineteen challenges were identified and categorized into three contexts namely operational-level, macro-level and internal-level. Then, a methodology based on integrating decision-making trial and evaluation laboratory with the Shannon entropy concept and simple additive weighting was proposed to aid in the study analysis. Results indicate that the operational-level context is most significant and ranks highest in deterring SC resilience in Nigerian retail firms under disruptions. Specifically, 'limited credit facility' is the highest ranked challenge, followed by 'lack of Omni channel fulfilment capabilities', 'delivery irregularities', ‘workers’ high welfare package’ and 'lack of supplier collaboration’. Besides, 'incentivisation' mitigates these challenges the most and is strongest linked to build retail SC resilience, followed by 'digitalization' and ‘SC localisation'. Implications are highlighted from the results for retail SC resilience in the post-COVID-19 era.

Consumer‐Centric Supply Chain Management: A Literature Review, Framework, and Research Agenda

ABSTRACTThe dynamic landscape of consumer behavior is pressuring companies to adapt to rapidly evolving consumer expectations. The burgeoning interest in the supply chain management (SCM) literature toward consumer‐centric research is capturing the attention of scholars and sparking diverse calls to action. While a significant growth in SCM research has centered on consumers as the unit of analysis over the past decade, it remains necessary to improve understanding of how the role of consumers as actors within the supply chain dynamic has evolved. We aim to enhance consumer‐centric SCM research by conducting a systematic literature review that summarizes and synthesizes SCM studies that focus on consumers as the unit of analysis. Our review encompasses 174 articles from 16 leading journals. We bundle the literature based on two key trajectories: (i) major functions involved in SCM activities, and (ii) phases of the customer journey. To synthesize the literature, we develop a framework that encompasses the following elements: (i) factors influencing consumer‐centric SCM, (ii) resultant consumer‐related outcomes, and (iii) retail supply chain structures. Based on the literature review, we propose a research agenda that serves as a basis for advancing SCM research by identifying research questions that are relevant to scholars and practitioners.

Effect of Temperature, Relative Humidity, and Incubation Time on the Mycotoxin Production by Fusarium spp. Responsible for Dry Rot in Potato Tubers.

Potato is the fourth most consumed crop in the world. More than half of the crop is stored for three to nine months at cold temperatures (3-10 °C) for the fresh and seed market. One of the main causes of fresh potato waste in the retail supply chain is the processing of fungal and bacterial rots during storage. Dry rot is a fungal disease that mainly affects the potato crop during storage and is responsible for 1% of tuber losses in the UK. It is produced by Fusarium spp., such as Fusarium sambucinum and F. oxysporum, which can lead to the accumulation of mycotoxins in the potato tuber. Little is known about the impact of environmental factors on the accumulation of mycotoxins in potato tubers. Understanding the ecophysiology of these fungi is key to mitigating their occurrence under commercial storage conditions. Therefore, this work aimed to elucidate the effect of three different temperatures (5, 10, and 15 °C) and two different water activities (aw; 0.97, 0.99) on the ecophysiology and mycotoxin accumulation of F. sambucinum and F. oxysporum in a potato-based semi-synthetic medium. The mycotoxin accumulation was then studied in vivo, in potato tubers cultivated under organic farming conditions, stored for 40 days at 8.5 °C. Results showed that higher temperatures and aw enhanced fungal growth, lag time, and mycotoxin accumulation in vitro. Growth rate was 2 and 3.6 times higher when the temperature increased from 5 to 10 and 15 °C, respectively. Six different mycotoxins (T-2, HT-2, diacetoxyscirpenol, 15-acetoxyscirpenol, neosolaniol, and beauvericin) were detected in vitro and in vivo. T-2 was the most abundant mycotoxin detected in vitro, observing 106 ng of T-2/g media after 21 days of incubation at 10 °C and 0.99 aw. Due to the long period of time that potato tubers spend in storage, the fluctuations of environmental factors, such as temperature and relative humidity, could promote the development of fungal rot, as well as mycotoxin accumulation. This could result in important food and economic losses for the potato market and a threat to food safety.

Developing customer convenience and experience through increased competency and efficiency: A strategic approach to retail operations mastery

Retailers who are part of supply chains are crucial in attracting customers to physically visit their stores and thereby increase supply chain revenue. Retailers in supply chains are responsible for handling a high volume of transactions and high customer contact, thus better management of retail operations is necessary to provide greater convenience and experience for customers. In this regard, retail operations must be properly managed, particularly during times of crisis like COVID-19, to ensure that customers purchase their basic needs promptly and safely. Since customer contact is high, the retail operations can have a greater say in improving the customer convenience and experience but this perspective has not been specifically emphasized both in research and practice. Thus, the current study attempted to evaluate how well retail operations can improve customer convenience and experience so that retailers can do well even during times of uncertainty. The study, which is grounded in the resource-based view theory, thus looks at how well retailers' competency and efficiency in running the operations help in achieving better customer convenience and experience. In this regard, sample data from 416 practitioners belonging to the Indian retail industry has been selected to examine the mediating role of retailers' efficiency to retailers’ competence in achieving better customer convenience and experience. This study importantly confirms that while more competence can help retailers operate more efficiently, it cannot, by itself, provide customers with greater convenience or a better shopping experience. This study found that retailers concentrate on streamlining their operations in order to overcome capacity limits because it is expensive and limited. The empirical evidence shows that retail operations have significance say in offering better convenience and experience customers.

Manufacturer–retailer bridge governance in retail supply chains

AbstractTo address information asymmetry in supply chains, the literature suggests that manufacturers should shift from market governance to hierarchical governance or a combination of both. However, as many manufacturers must continue to rely on market governance, this research introduces a governance strategy, manufacturer–retailer bridge governance (MRBG), for these manufacturers. The research examines the governance effects of MRBG on distributor behavior and the contingent effects of manufacturer status and MRBG strategic orientation. Hypotheses are developed based on in‐depth interviews with sales and purchasing managers and tested in two experiments with sales managers. The results show that MRBG has a double‐edged effect on distributor behavior, and this effect is moderated by manufacturer status. Moreover, the alignment between manufacturer status (high versus low) and MRBG strategic orientation (collaboration versus arbitrage) influences the effectiveness of MRBG.

Supplier and Retailer Supply Chain Integration Model; Fashion Industry

Supplier and Retailer Supply Chain Integration Model; Fashion Industry

Allocating Inventory Risk in Retail Supply Chains: Risk Aversion, Information Asymmetry, and Outside Opportunity

Problem definition: Recent global crises have caused unprecedented economic uncertainty and intensified retailers’ concerns over inventory risks. Mitigating inventory risks and incentivizing retailer orders is critical to managing retail supply chains and restoring their norms after severe impacts. We study the allocation of inventory risk using contracts in a retail supply chain with a risk-neutral manufacturer and a risk-averse retailer. We consider two factors that affect the effectiveness of contracting: (1) asymmetric risk aversion information—retailers’ attitudes are typically diverse and unknown to the manufacturer, and (2) uncertain outside opportunity—retailers typically face a volatile external business environment. Methodology/results: With a game-theoretic model that captures the interaction among risk aversion, information asymmetry, and outside opportunity, we derive the contracting equilibrium under two widely adopted risk allocation schemes—push (i.e., the retailer bears the inventory risk) and pull (i.e., the manufacturer bears the inventory risk) contracts. Contrary to the conventional wisdom that pull contracts are more effective in risk mitigation, we show that push contracts may induce larger expected order quantities and achieve the highest supply chain efficiency due to the interaction of asymmetric risk aversion information and risky outside opportunities. We also find that the manufacturer may obtain higher profits with push contracts when both the heterogeneity in the retailer’s risk attitude and the risk of the outside opportunity are sufficiently high. In addition, when the risk of the outside opportunity is in a medium range, the push contract allows the manufacturer to fully eliminate the information rent and achieve the supply chain’s first-best outcomes. We further evaluate the effects of product profitability and demand uncertainty and generalize the retailer’s risk measure to any coherent risk measure. Managerial implications: Our analysis highlights the importance of modeling asymmetric risk aversion information and risky outside opportunities in analyzing supply chain contracting. When considering these practical factors, allocating more inventory risks to a risk-averse retailer may be better than a risk-neutral manufacturer. Our results provide novel insights into the selection of proper contract types for managing inventory risks in retail supply chains. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0624 .

Supply chain model having stochastic lead time demand with variable production rate and demand dependent on price and advertisement

In this present study, a single-manufacturer and single-retailer supply chain management model are formulated for a single product. This study specifically looks at a supply chain with variable production rate, stochastic lead time demand, and price- and advertisement-dependent demand. By incorporating these complex aspects into a model, which enables to examine their combined effects on supply chain performance, this study adds to the body of knowledge. The study reveals unique insights into the complex interplay between pricing tactics, advertising efforts, production dynamics, and the variability brought on by stochastic lead times through meticulous study and modelling. Finally, the total system profit is calculated and optimized with all the decision variables. A classical approach is performed to obtain the optimized solution of the joint profit function along with the decision variables. Two models are discussed in the study: (1) the model with normally distributed lead time demand and (2) the model with distribution-free lead time demand. The joint profit of the supply chain is found to be lesser by 1% for the normally distributed lead time demand than the distribution free pattern. The comparison of the shipment policies and the safety factors for the different distribution patterns of the lead time demand are shown. Though the huge increment in the safety factor for unknown leadtime demand distribution may help in reducing the uncertainity factor and disruptions in the supply chain, but also it may unnecessarily tie up more capital which can be invested in other sectors of the supply chain.

A two-stage stochastic optimization framework for retail supply chain modeling with contemporaneous resilient strategies

A two-stage stochastic optimization framework for retail supply chain modeling with contemporaneous resilient strategies

Challenges and Solutions of Fresh Retail Supply Chain

Under the background of the great development of service quality productivity, with the promotion of globalization and technological innovation, fresh retail supply chain has become the focus of retail industry. As a retail giant, Wal-Mart's strategy and practice in managing fresh retail supply chain is of great significance to other enterprises in the industry. Taking Wal-Mart as a case, this paper analyzes the main challenges faced by fresh retail supply chain, and discusses the effective strategies adopted by Wal-Mart in the process of dealing with these challenges, in order to provide reference and reference for enterprises in the same industry.

Role of Blockchain Technology in Enhancing Supplychain Traceability, Transparency and Efficiency

The conventional traceability system faces challenges such as centralized control, lack of transparency, unreliable data, and the frequent creation of information silos. To address these issues, this paper introduces a blockchain-based traceability system tailored for the storage and retrieval of product information in the agricultural supply chain. Utilizing blockchain's inherent properties of decentralization, immutability, and traceability, this system enhances the transparency and trustworthiness of traceability data. Furthermore, the integration of blockchain technology with cryptography is suggested to enable the secure exchange of private information within the blockchain network. Additionally, we have developed a reputation-based smart contract system to motivate network participants to contribute traceability data actively. This approach aims to leverage blockchain's capabilities to overcome the limitations of traditional traceability systems in the agricultural sector. This research paper explores the role of blockchain technology in enhancing supply chain transparency and efficiency, focused on food and agriculture sector. It underscores the growing consumer demand for authentic product and the challenges of maintaining transparency is increasingly becoming difficult in global and complex markets. Findings reveal that blockchain has significant capabilities to increases transparency, traceability, and security, while potentially reducing costs and errors. However, the study also identifies challenges, such as technological complexities, scalability issues, regulatory uncertainties, and integration hurdles. A strategic framework for adopting blockchain in retail supply chains is proposed, offering insights for practitioners and policy considerations. The paper also designs a novel traceability system for agricultural product supply chains, employing blockchain technology to address issues such as centralized management, opaque information, and data unreliability. The study concludes that while blockchain technology presents significant opportunities for transforming supply chains, realizing its full potential necessitates careful strategizing and sector-wide collaboration. The research offers recommendations for practitioners and outlines directions for future research, highlighting that the successful application of blockchain hinges on organizational adjustments and meeting specific boundary conditions.

The inventory bullwhip effect in the online retail supply chain considering the price discount based on different forecasting methods

With the improvement of the new generation information technology, and the development of online economy, the customer behavior has gradually changed. The online economy has gradually become a new economic growth point. Many online platforms attract customers to purchase new products through different kinds of price discounts. In this article, we discuss the inventory bullwhip effect (IBE) in an online retail supply chain (ORSC) considering the price discount based on the different forecasting methods. Moreover, we discuss the influence of them on the IBE. When the price discount, the moving average forecasting method (MA), the exponential smoothing forecasting method (ES), and the minimum mean squared error forecasting method (MMSE) are considered, we consider an ORSC including of a manufacturer and an online platform, and the quantitative models of the BE and the IBE are discussed. This article finds that when the price sensitivity coefficient is very low, the online platform’s IBE is the lowest when the online platform adopts the MMSE method. Moreover, when the price discount gradually increases, the IBE of the online platform is also increasing. Moreover, it is gradually increasing when the expectation price difference coefficient becomes gradually increasing.

Supply Chain Risks: A Review of the Concept and Some Theoretical Considerations in the Context of a Moroccan Retail Supply Chain

In a competitive environment of unparalleled complexity, companies strive to develop a unique value proposition toward gaining a competitive advantage. In principle, everyone agrees that companies must differentiate themselves and focus their actions more on various aspects to achieve objectives. By adopting such an approach, companies can optimize their market positioning while getting ahead of competitors. Nevertheless, despite the efforts made by companies, supply chains are vulnerable to various risks. If not managed efficiently, their consequences will directly impact the achievement of supply chain performance. The literature dealing with risk is innumerably abundant. It should be noted that authors generally define it either to designate undesirable losses and negative results or to assess it in a positive aspect. Our purpose here is simply to carry out a theoretical analysis related to the risks inherent in the supply chain. After researching to clarify the meaning of the words used, we proceeded to study the various categories of risks inherent in the supply chain. Finally, the different sources of risks associated with it will illustrate our point. It should be added that we thought it would be a good idea to mention only, without elaborating on them, the potential risks that our study implies that Moroccan retail chains are facing.

Study on Data-driven Digital New Retail Supply Chain Innovation

The innovative development of new retail supply chain driven by data is of great significance to enterprises, which can improve operational efficiency, improve service quality, optimize cost control, strengthen supply chain cooperation and coordination, and promote business model innovation, so that enterprises can maintain competitive advantage in the fierce market competition, to achieve sustainable development. Therefore, enterprises also actively analyze the challenges and opportunities faced by the development of digital new retail supply chain driven by data, and actively take measures to explore innovative strategies for the development of digital new retail supply chain based on their own conditions. Such as strengthening data quality management, strengthening data security protection, improving technical infrastructure, changing organization, cultivate talents, and promoting cooperation among supply chain participants to facilitate the smooth development of the new digital retail supply chain.

Pharmaceutical retail supply chain responses to the COVID-19 pandemic

AbstractIn the wake of the COVID-19 pandemic, the importance of resilient supply chain and operations management in the pharmaceutical industry has intensified. A particular challenge has been the timely adaptation to rapid fluctuations in the business environment to cope with disruptions and ensure the adequate supply of medical equipment and pharmaceuticals. In this study, we perform a simulation-based analysis of pandemic-triggered impacts on pharmaceutical supply chains in Germany with the aim of examining supply chain response to the COVID-19 pandemic. To accomplish this, we build a digital supply chain model using a hybrid approach that combines case study analysis and discrete-event simulation implemented in anyLogistix. Based on the results, we propose a specific response action plan for the pharmaceutical industry that can be deployed in response to severe disruptions and pandemic-like crises. We also offer a resilience framework for the post-pandemic environment as a guideline for strategic decision-making.

Exploring the performance impact of unit load selection in order picking: evidence from a cold retail supply chain

PurposePrior literature has widely established that the design of storage locations impacts order picking task performance. The purpose of this study is to investigate the performance impact of unit loads, e.g. pallets or rolling cages, utilized by pickers to pack products after picking them from storage locations.Design/methodology/approachAn empirical analysis of archival data on a manual order picking system for deep-freeze products was performed in cooperation with a German brick-and-mortar retailer. The dataset comprises N = 343,259 storage location visits from 17 order pickers. The analysis was also supported by the development and the results of a batch assignment model that takes unit load selection into account.FindingsThe analysis reveals that unit load selection affects order picking task performance. Standardized rolling cages can decrease processing time by up to 8.42% compared to standardized isolated rolling boxes used in cold retail supply chains. Potential cost savings originating from optimal batch assignment range from 1.03% to 39.29%, depending on batch characteristics.Originality/valueThis study contributes to the literature on factors impacting order picking task performance, considering the characteristics of unit loads where products are packed on after they have been picked from the storage locations. In addition, it provides potential task performance improvements in cold retail supply chains.