The effect of optimizing warehouse locations on omnichannel designs

Millstein, Mitchell A.; Bilir, Canser; Campbell, James F.

doi:10.1016/j.ejor.2021.10.061

Cited by 24 publications

(20 citation statements)

References 23 publications

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“…In this paper, we investigated the determination factors of overseas warehouses for cross-border e-commerce and proposed a comprehensive method combined with E-TOPSIS and centrality in complex networks to find the optimal overseas warehouse locations for Chinese export products along the B&R. Our main findings are as follows: (1) Consistent with the findings of many previous studies on logistics warehouse locations, results show that freight demand is the most important factor influencing cross-border e-commerce overseas warehouse locations [49,50], followed by economic development level (GDP and PPC). This is mainly because trade demand is the key cause of logistics, and the level of economic development or GDP and per capita consumption of a region determines the trade demand of the area; (2) The betweenness centrality and outdegree centrality in a global trade network and the logistics infrastructure are also important factors in cross-border e-commerce overseas warehouse locations, which just ranked fourth, fifth, and sixth, respectively.…”

Section: Discussionsupporting

confidence: 79%

Overseas Warehouse Deployment for Cross-Border E-Commerce in the Context of the Belt and Road Initiative

Liu

Jayetileke

2022

Sustainability

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The development of cross-border e-commerce is generally faced with problems such as high freight, long transportation time, and low service level. However, overseas warehouses can effectively solve the above problems to a certain extent, and they can improve consumer satisfaction. Therefore, this paper proposed a method combined with the entropy technique for order of preference by similarity to ideal solution (E-TOPSIS) model and complex network analysis theory to make a comprehensive determination of overseas warehouse locations for China’s e-commerce exports in the context of the Belt and Road Initiative (B&R). We selected 62 countries along the B&R as pre-candidates for overseas warehouse locations and then evaluated the significance of each node in cross-border e-commerce for Chinese export products. Finally, 15 countries were identified as the optimal overseas warehouse locations for Chinese export products along the B&R. The results can provide reference for overseas warehouse deployment of Chinese cross-border e-commerce enterprises as well as the development and the construction of the B&R.

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Section: Discussionsupporting

confidence: 79%

Overseas Warehouse Deployment for Cross-Border E-Commerce in the Context of the Belt and Road Initiative

Liu

Jayetileke

2022

Sustainability

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“…, 2020). Hence, retailers that integrate fulfilment from store and warehouse tend to outperform their contenders (Millstein et al. , 2021; Ishfaq and Bajwa, 2019; Ishfaq and Raja, 2018).…”

Section: Methodsmentioning

confidence: 99%

“…The recent literature highlights that LMBF evolves towards fulfilment from warehouse complemented with fulfilment from store (Davis-Sramek et al, 2020). Hence, retailers that integrate fulfilment from store and warehouse tend to outperform their contenders (Millstein et al, 2021;Ishfaq and Bajwa, 2019;Ishfaq and Raja, 2018). This study therefore includes fulfilment from warehouse and fulfilment from store as LMBF conditions.…”

Section: Operationalizationmentioning

confidence: 99%

“…Therefore, the benefits and disadvantages of the choices in fulfilment should be balanced to optimize of customer service, costs, product availability and capital employed in assets and inventory. Another alternative, which has proven more relevant for large and established retailers, is to complement warehouse-based fulfilment of online orders with fulfilment from stores (Davis-Sramek et al, 2020;Ishfaq et al, 2016;Millstein et al, 2021).…”

Section: Last Mile Back-end Fulfilmentmentioning

confidence: 99%

“…Consequently, we engage in the debate regarding whether and how the changes in firm characteristics (e.g. change in sales channel-mix or sales growth) would interplay with the LM logistics practices (Millstein et al, 2021). For instance, evolving from dedicated fulfilment from warehouse or store to integrated fulfilment from warehouse and store as sales grows, would contribute to high performance.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

See 2 more Smart Citations

A configurational approach to last mile logistics practices and omni-channel firm characteristics for competitive advantage: a fuzzy-set qualitative comparative analysis

Risberg

Jafari

Sandberg

2023

IJPDLM

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PurposeThe purpose is to explore how the configurations resulting from the interplay of last mile logistics practices and firm characteristics are associated with firm performance in an omni-channel context.Design/methodology/approachDrawing on configuration theory (CT), the authors use fuzzy-set qualitative comparative analysis (fsQCA) to analyze data on 72 Swedish omni-channel retailers.FindingsFour configurations are identified—store-oriented small and medium-sized enterprises (SME's), online-oriented SME's, large store-oriented retailers and large online-oriented retailers. The results show that while offering a wide range of delivery options is necessary to achieve high performance, it is not sufficient, and that returns and fulfilment should be simultaneously considered. For instance, large high-performers leverage their stores and warehouses for fulfilment and returns in an integrated way irrespective of sales channel-mix. However, SME's appear to focus on fulfilment simplicity with less-costly delivery alternatives, where store-oriented SME's leverage stores and the online-oriented counterparts leverage warehouses. Consequently, the authors develop a configurational taxonomy and discuss a set of recipes which provide insights for researchers and practitioners.Research limitations/implicationsThe study provides a more comprehensive understanding of the pathways to success, and potential pitfalls, in the last mile logistics context.Originality/valueThis study applies a novel methodology in the field, namely fsQCA, to explore the paths to competitive advantage. It covers a wide range of stages in the LM including back-end fulfilment, delivery and returns. It also provides insight into the logistics practices of both SME's and large omni-channel retailers.

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Robust pricing and inventory decisions in ship‐from‐store omnichannel operations

Sun,

Qiu,

Sun

2024

Manage Decis Econ

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This work studies the deployment of the ship‐from‐store omnichannel strategy and the pricing and inventory decisions for an online retailer. Robust optimization models are constructed for the online‐only and the ship‐from‐store modes under a budgeted uncertainty set. The ARIMA model is used to predict the parameter values of the budgeted uncertainty set using historical demand data. The closed‐form optimal solution for the online‐only mode is obtained. The robust counterpart model for the ship‐from‐store mode is converted to a mixed integer quadratic programming model. Numerical studies are conducted to validate the theoretical results and to verify the effectiveness and practicality of the developed robust optimization solution approach. The results show that adopting a ship‐from‐store strategy may hurt the retailer's profit if a significant proportion of consumers are time‐sensitive with high travel cost. The ship‐from‐store strategy is optimal if it significantly boosts market growth.

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The effect of optimizing warehouse locations on omnichannel designs

Cited by 24 publications

References 23 publications

Overseas Warehouse Deployment for Cross-Border E-Commerce in the Context of the Belt and Road Initiative

Overseas Warehouse Deployment for Cross-Border E-Commerce in the Context of the Belt and Road Initiative

A configurational approach to last mile logistics practices and omni-channel firm characteristics for competitive advantage: a fuzzy-set qualitative comparative analysis

Robust pricing and inventory decisions in ship‐from‐store omnichannel operations

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