A framework for how logistics service providers should handle returns as a warehouse operation for e-commerce companies

Title: A framework for how logistics service providers should handle returns as a warehouse operation for pure e-commerce companies Authors: Louise Meurling and Matilda Sturesson Supervisor: Joakim Kembro, Division of Engineering Logistics at LTH Problem description: Managing the reverse logistics process in a warehouse is a central part of the activities for companies operating in e-commerce. Companies can outsource the return handling to a Logistics Service Provider (LSP) in order to focus on their core competences. The theory of today is based on the assumption that a physical point of contact is included in the chain. Therefore, there is a need to extend the theory into the context of e-commerce. Purpose: The purpose of this thesis is to create a framework for how LSPs should handle returns in the warehouse, from the point of receiving until put back in storage, for customers in the e-commerce business. Research questions: How should a LSP handle returns in the warehouse for customers of e-commerce? What are the barriers of the return handling in a warehouse and how can LSPs overcome these? How do the different characteristics of products and customers of a LSP change the handling of returns? How can the return handling in a warehouse of a LSP contribute to greater value for the customers acting in the e-commerce business? Methodology: A flexible design methodology has been used in this thesis together with a multiple case study based on two cases at PostNord TPL´s facility in Helsingborg. Interviews, observations, and historical data have been collected and analysed in an intra case analysis and a cross-case analysis in order to answer the research questions and modify the reverse logistics framework to the context of e-commerce. Conclusions: A framework for how LSPs should handle returns in a warehouse is extended based on theory to the context of e-commerce. Several barriers of the return handling for LSPs have been identified. These are: limited sharing of forecasts, limited visibility, customer requirements, heterogenous decision making, and the changing business of e-commerce. It can be concluded that the product and customer characteristics impact the handling of returns to a large extent. To be able to contribute to greater value for the customers, the LSP should offer a fast, efficient, and less costly reverse logistics process than if they would perform it in-house. Keywords: Warehouse activities, inbound logistics, reverse logistics process, returns, return handling, e-commerce, logistics service provide

Internet+ Logistics in Chinese Non-Timber Forest Products Online Stores

Electronic commerce (E-commerce) has become an international phenomena nowadays. Especially in China, due to the country’s size, large population and culture, the consumption-driven economic growth plays a more fundamental role than in many other countries, which gives higher requirements for the development of modern logistics. The rapid development of Chinese e-commerce, has made online shopping a very important part in people’s daily life as it is cheaper and more convenient than to buy things from traditional stores. At the same time, the Chinese government gives strong support to E-commerce in its economic development strategy. In March 2015 an E-commerce idea called Internet Plus (Internet+) was officially announced by the Chinese Prime Minister as an important government business strategy in the future economic development plan. The idea does not only aim to develop a new type of economics, but also to improve the traditional economics. The new strategy can decrease enterprises’ cost and increase overall operating efficiency. Behind the high development speed of the e-commerce, logistics is a very important factor to ensure the success of the online business and it is necessary to realize which factors under E-commerce Logistics takes the biggest part and has the most weight among all logistics features. In this study, I will concentrate on Internet+ Logistics, which derived from E-commerce Logistics. Evaluate the logistics performance of 364 online none timber forest products (NTFPs) stores from Alibaba online shopping mall names Tmall. The study can be seen as complete and conceptual, both in the academic and the practical field. By using entropy weight method, Topsis analysis and cross analysis, I analyze the weights of different levels indexes in Internet+ Logistics performance and also get total scores and ranking of sample online stores, in order to understand the important factors and the development trend in Internet+ Logistics. My study reveals, that some indexes such as service can largely influence the performance of online store logistics, which are the most important elements of Internet+ Logistics. The proposed framework enriches the theory of network marketing and gives directions to business owners to make improvements on the logistics quality of their online stores

The Last Mile in an Electronic Commerce Business Model - Service Expectations of Austrian Online Shoppers

Many existing research approaches on business models in e-commerce are on a high and aggregated level. Furthermore, there are few empirical insights into the appropriateness of chosen e-commerce business models. The paper at hand focuses on the empirical analysis of the last mile issue in b2c ecommerce. For this purpose a research framework for e-commerce business models is presented that serves as a basis for empirical analyses as well as for managerial decisions. The framework takes strategic decisions and conditions of an e-commerce business model into account. Based on this framework the specific issue of last mile logistics is empirically analyzed. Relevant action alternatives for physical distribution are investigated according to their appropriateness from consumers’ point of view. The empirical study has been carried out on behalf of 180 face-to-face interviews. Results indicate that the product category has a strong impact on customers’ expectations on an electronic retailer’s last mile logistics service whereas the customers’ flexibility in terms of time and location obviously does not influence their requirements for logistical services

Analytical Modeling Framework to Assess the Economic and Environmental Impacts of Residential Deliveries, and Evaluate Sustainable Last-Mile Strategies

In the last decade, e‐commerce has grown substantially, increasing business‐to‐business, business‐to‐consumer, and consumer‐to‐consumer transactions. While this has brought prosperity for the e-retailers, the ever-increasing consumer demand has brought more trucks to the residential areas, bringing along externalities such as congestion, air and noise pollution, and energy consumption. To cope with this, different logistics strategies such as the introduction of micro-hubs, alternative delivery points, and use of cargo bikes and zero emission vehicles for the last mile have been introduced and, in some cases, implemented as well. This project, hence, aims to develop an analytical framework to model urban last mile delivery. In particular, this study will build upon the previously developed econometric behavior models that capture e-commerce demand. Then, based on continuous approximation techniques, the authors will model the last-mile delivery operations. And finally, using the cost-based sustainability assessment model (developed in this study), the authors will estimate the economic and environmental impacts of residential deliveries under different city logistics strategies.View the NCST Project Webpag

E-retailers' logistics management in China: A mixed methods empirical study

Electronic commerce (e-commerce), as a method of buying or selling via telecommunications and computer networks, has redefined and changed the ways how people live and how business is conducted (Bushry, 2005). Although popular in most developed countries, it exists only about 15 years in developing countries like China, although growing at a considerable rate (He, 2010). For example, during 2008-2012, Chinese online shopping market size ascended from £12.82 billion to £130.30 billion. (PRNewswire, 2014). In 2014, China B2C market soared 68.7% and C2C market increased 35.2% comparing to 2013 (iReserach, 2015). Despite the potential exponential growth of e-commerce market, the logistics sector develops at a slower pace and becomes a constraint to e-commerce growth. For instance, infrastructures in most areas in China remain undeveloped and insufficient for modern e-commerce (Zhou, 2013). During festive periods of high demand, express companies had to run a 24/7 operation for weeks, yet still remain unable to deliver all goods on time (Qian, 2012). Although e-commerce and logistics are two areas over-researched during the past decades in developed countries, there are still few empirical studies in developed countries that explore and how logistics services and infrastructure impact on the business-to-consumer (B2C) markets in China (Zhou, 2013). This study aims to fill this gap by providing empirical evidence on the e-commerce logistics operations in China and how they are integrated with consumer demand. The study is one of few empirical studies that employs mixed-methods with a large scale surveys. Research questions The objectives of this research are to investigate, analyze and evaluate the major e-retailers' logistics operation in China and customers' perceptions toward their logistics service. Specifically, research questions are developed as follows: • What are the main e-retailers' logistics operation modes in China? What are their relative strengths and weakness? • What are the current situation and main challenges of Chinese e-retailers regarding logistics operation? • What factors determine the service quality and customer satisfaction in -retailers' logistics service in China? • To what extent logistics models such as reverse logistics, crowdsourced shipping might, and delivery box can be applied for e-retailers' logistics? Methodology A critical literature review examined e-commerce and logistics management and identified key themes on e-retailers logistics operations comparing developed and developing countries. A conceptual framework of key variables is developed to guide the empirical part of this study. A mixed empirical method was followed. Qualitative methods included focus groups and in-depth, semi-structured interviews with key logistics managers in China using archival research to cross-validate interviews' results. A large-scale survey of logistics service satisfaction was followed with self-administered questionnaires. Data analysis involved correlation and regression analysis for the quantitative data and content analysis for the qualitative data. Findings Firstly, findings suggest that the main challenges for e-retailers in China are: (i) lack of reliable and nationwide 3PL providers, (ii)the high cost and low efficiency of last-mile logistics, and (iii)increased yet unfulfilled logistical needs from small cities that are excluded from e-commerce due to the lack of adequate logistics coverage. Reverse logistics was not prioritized by most e-retailers whereas leading e-retailers in China started to develop sustainable logistics operations to enhance their brand reputation. Regarding logistics modes in China, findings suggest that most retailers rely on own means of logistics operations, which offer them the advantage in raising the logistics service quality in China. However, in order to meet the logistics needs of small cities, e-retailers had to collaborate with regional third-party logistics providers and develop their capabilities to extend their delivery range and at the same time reduce logistics cost. Thirdly, the investigation on the customer's side reveals that 56% customers express a positive judgement toward e-retailers' logistics service in China. Besides safety, delivery dependability, promptness of returns and delivery speed are the most important factors which influence customers' satisfaction level in China. Correlation analysis showed that customers of different ages, occupations and incomes have various preferences on specific logistics service factors (like delivery speed, flexibility and cost). For instance, Chinese youths are easier to lose patience with slow deliveries while employees usually are more concerned with delivery flexibility. Therefore, e-retailers should differentiate their logistics service to meet various needs. Lastly, optimized strategies in the last-mile logistics, reverse logistics and green logistics were analyzed and evaluated. Findings suggest the CAM model (Lee and Whang, 2001), delivery box (Andrew, 2015; Punakivi et al., 2001) and crowdsourced shipping might be effective solutions in the last-mile logistics and reverse logistics. Contribution This research identified and analyzed the current situation and challenges faced by e-retailers in China. A representative sample to further analyze characteristics of Chinese consumer behavior regarding e-commerce logistics service was established. The relationships between various logistics service factors and different customer groups were also explored. Combining with literature arguments, this research also contributes to the choice of logistics modes and optimized strategies in the last-mile logistics and reverse logistics

Research on the Application of Blockchain Technology in the Field of Cross-border Logistics for Small and Medium-sized Enterprises

With the continuous development of the current economic globalization, coupled with the continuous maturity of Internet technology, e-commerce, as a new industry, has been developing rapidly. Cross-border e-commerce has become the mainstream of development in the current economic era. In the process of cross-border e-commerce development, logistics plays an important role. The success or failure of small and medium-sized enterprises also depends on the efficiency and quality of logistics to a great extent. If some cross-border e-commerce enterprises want to get a place in the current fierce market competition, they must choose appropriate logistics channels to effectively promote their own development. This study explores the typical application mode of Blockchain technology in the field of cross-border logistics, and proposes specific implementation path to improve the performance of cross-border logistics management. This study combines the selection of cross-border logistics drive of small and medium-sized enterprises, analyzes the structural framework, core technology and main advantages of Blockchain, and then analyzes the combination of Blockchain technology advantages and cross-border logistics management needs. On this basis, the application mode of Blockchain technology in cross-border supply chain logistics is proposed; the application mode of Blockchain technology in cross-border trade logistics is proposed with information, documents and containers as typical objects; the application mode of Blockchain technology in cross-border customs clearance is proposed with customs declaration as typical carrier. Finally, the paper puts forward the specific implementation path, main success factors and implementation steps of the application of Blockchain technology in cross-border logistics

The impacts of service quality and customer satisfaction in the e-commerce context

This paper aims to investigate the impacts of service quality on customer satisfaction and loyalty in the e-commerce context, in particular from a triad view of customer-e-retailer-3PL (third party logistics) provider. A literature review is primarily used to determine the conceptual model and to develop the measurement scales. Data were collected through online questionnaire survey conducted in China. Structural equation modeling was used to analyze the collected data and test the proposed research hypotheses. The results indicate that both e-service quality and logistics service quality are strongly linked with customer satisfaction. The research results shown that practitioners (e-retailers) should not only focus on e-service quality, but also the logistics service quality. This research validates the proposed service quality framework with two dimensions (e-service quality and logistics service quality) in e-commerce context. Second, it highlights the impact path of service quality on customer satisfaction and loyalty

Towards the formulation of a comprehensive framework for the evaluation of investments in sell-side e-commerce

In recent years, whilst considerable attention has been focussed on the Internet, and in particular its potential as a sales medium, little research has been conducted into how such investments can be objectively evaluated. Based upon a review of the literature and a series of exploratory interviews, a provisional framework for evaluating e-commerce investments is presented. It is shown that in addition to considering generic issues such as flexibility and implementabilty, an e-commerce evaluation framework should address specifics, such as customer management, marketing and logistics

Research on Mode and Risk Prevention of Agricultural Supply Chain Finance based on E-commerce

The rapid development of e-commerce has a profound impact on agricultural supply chain finance (ASCF), which is of great significance to enhance the resilience of agricultural economic development, realize the poverty alleviation effect of agricultural enterprises, integrate agricultural supply chain resources and solve the financing difficulties of agricultural enterprises. We analyze the participants and functions of the ASCF mode based on e-commerce, and the contract framework of various participants when they operate in the ASCF platform in this paper. Based on the agricultural industry chain, we analyze the operation process of accounts receivable financing mode, inventory financing mode and prepayment financing mode based on E-commerce. Finally, in view of the natural risks, credit risks, logistics risks, technical risks and legal risks that may exist in ASCF based on e-commerce, the corresponding countermeasures are put forward from the aspects of dispersing natural risks, building digital credit risk assessment system, building agricultural logistics network system, improving technical risk monitoring system, and improving relevant laws and regulations policy recommendations

Feasibility of Warehouse Drone Adoption and Implementation

While aerial delivery drones capture headlines, the pace of adoption of drones in warehouses has shown the greatest acceleration. Warehousing constitutes 30% of the cost of logistics in the US. The rise of e-commerce, greater customer service demands of retail stores, and a shortage of skilled labor have intensified competition for efficient warehouse operations. This takes place during an era of shortening technology life cycles. This paper integrates several theoretical perspectives on technology diffusion and adoption to propose a framework to inform supply chain decision-makers on when to invest in new robotics technology