Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia

Eliot Simangunsong, Ivan Evander Subagyo

2019

Abstract

Retail industry has undergone several transformations over the years. There are three types of retail channel from a logistical perspective. The first type is single-channel logistics, where retail traders operate one sales channel and the logistic system is dedicated for one channel. The second type is multi-channel logistics, where retail traders use several channels, such as store and direct sales. The third type is omni-channel logistics, where retail buyers and traders do not differentiate channels. Shared logistics management is usually available through e-commerce and online sales. The objectives of this research are to investigate retail transformation trend from offline retail traders to multi/omni-channel logistics and identification of suitable business strategy. By using an empirical quantitative approach in the form of a survey, data from 114 electronic retailers have been collected, consists of 70 respondents are retail stores that have both offline and online stores and 44 respondents only have offline stores. The result of analysis shows that most retail transactions are offline transactions where buyers have to go to the retail stores to claim their products. However, there is enough empirical evidence that retail that use multi-channel and omni-channel logistics have better financial performance compared to offline stores only. Three critical factors have been identified to contribute to the total retail sales increase. Firstly, price discrimination in product delivery, secondly, the existence of dedicated resources (space and staff) that are optimally used in terms of work time efficiency and buyer service, and thirdly, the ability for consumers to see every goods or stocks in all retail shops/warehouses.

Paper Citation

in Harvard Style

Simangunsong E. and Subagyo I. (2019). Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 34-42. DOI: 10.5220/0009198500340042

in Bibtex Style

@conference{ebic19,
author={Eliot Simangunsong and Ivan Evander Subagyo},
title={Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={34-42},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009198500340042},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia
SN - 978-989-758-498-5
AU - Simangunsong E.
AU - Subagyo I.
PY - 2019
SP - 34
EP - 42
DO - 10.5220/0009198500340042