Delivery Efficiency and Supplier Performance Evaluation in China's E-retailing Industry

This paper focuses on overall and sub-process supply chain efficiency evaluation using a network slacks-based measure model and an undesirable directional distance model. Based on a case analysis of a leading Chinese B2 C firm W, a two-stage supply chain structure covering procurementstock and inventory-sale management is constructed. The research shows overall supply chain inefficiency is attributable to procurement-stock conversion inefficiency. From a view of operations model,the third-party platform model is more efficient than a "shop in shop" self-operated model. However,the self-operated mode performs better in product categories such as computer & Office & digital, food& drink and healthy products due to these products' delivery characteristics and consumers' shopping habits. In the logistics selection, most e-retail players are inclined to choose the hybrid model of 3 PL and self-operated logistics with the product category extension from vertical model to all-category model. These findings may help managers improve supplier-buyer relationship and strengthen supply chain management. This research offers a new explanation regarding the failure of e-retail supply chain.

Same-day delivery time-guarantee problem in online retail

This study introduces the same-day delivery time-guarantee(SDDTG)problem for supporting online retail.In the SDDTG,orders are placed online and are processed and delivered from a depot to customer locations in the same day.The problem seeks optimal delivery time guarantees to offer customers as they consider making purchases to increase purchase decision likelihood while accounting for delivery-related,supply-side costs that can affect profits.Time guarantees are decision variables rather than parameters(as is typical)and are designed around anticipated customer satisfaction levels and purchase likelihoods.Delivery deadlines are not merely given to customers once they make their purchases,but rather the attractiveness of the offered delivery guarantees affects whether they make their purchases,i.e.,whether demand is realized.The problem is conceptualized as a multistage,stochastic,mixed-integer program in which uncertainties associated with customer reaction to delivery time guarantee offers and their arrival over time are captured.Given a shrinking horizon over a fixed planning horizon,the multi-stage program is approximated by a series of two-stage programs.A parallelized progressive hedging solution methodology is proposed and insights from its application on a case study.The problem recognizes tradeoffs between meeting promised delivery times and capturing the market.

ON INVENTORY STRATEGIES OF ONLINE RETAILERS

This study focuses on inventory strategies of Internet retailers (etailers). The etailer faces options of holding her own inventory or outsourcing through the third party(ies). We assess etailer inventory strategies through mathematical modeling and numerical experiments. When ordering and holding her own stock, the etailer has full control of the order fulfillment process but bears the inventory-related risk. When outsourcing stock, etailer’s orders may not get an equal priority as for those of the third party’s own. Built upon simple operations research models, the numerical experiments suggest that the etailer is better off relying on others to fulfill orders if her demand (profit margin) is low, but should revert to the strategy of maintaining her own inventory if her sales volume (profit margin) is relatively high. Other factors are also investigated. These findings seem to confirm what are being practiced in the industry.