Efficiency Analysis of Logistics Centers Dedicated to Retail Type: A Case of a Korean Distribution Company

Abstract

In today’s multi-channel distribution environment, it is crucial for the competitiveness of retail stores and companies to improve efficiency of dedicated logistics centers (DLCs) servicing types of retail outlets such as large retail-stores, super supermarkets, and convenient stores. This paper derives efficiency improvement strategies for DLCs through efficiency analyses. To this end, this paper empirically analyzes the efficiency of DLCs by applying DEA (data envelopment analysis) approaches using real data from a Korean distribution company. In detail, this paper analyzes operations, finance, and service efficiencies of DLCs and performs a comparison analysis on the efficiency between DLCs. Finally, this paper discusses the analysis results considering the DLCs’ characteristics and derives managerial and operational implications.