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Examining the value of flexible logistics offerings

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  • Giannikas, Vaggelis
  • McFarlane, Duncan

Abstract

In the order fulfilment and retail industry, the provision of fast and low cost delivery services has received significant focus over the last decade. What is often neglected is other factors that contribute to a customer’s overall experience like customisation and flexibility of deliveries, especially in cases when a customer’s needs and plans change between order placement and order delivery. This paper explores the value of a flexible type of logistics offering in which the customer is able to change the order requirements (such as delivery date) after the order has been placed. In particular, we focus on the interactions between a retailer and a customer in agreeing and executing such logistics orders. We examine the benefits of this type of flexible logistics offerings because flexibility and customisation are critical factors for the success of omni-channel commerce. Such offerings are clearly connected with recent developments in digital technologies as these technologies are essential for the implementation. Our results indicate that flexible logistics offerings can be beneficial both for retailers and for customers. They also highlight the importance of receiving orders that do not fully meet the requirements of a customer.

Suggested Citation

  • Giannikas, Vaggelis & McFarlane, Duncan, 2021. "Examining the value of flexible logistics offerings," European Journal of Operational Research, Elsevier, vol. 290(3), pages 968-981.
    • Handle: RePEc:eee:ejores:v:290:y:2021:i:3:p:968-981
    DOI: 10.1016/j.ejor.2020.08.056
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    References listed on IDEAS

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    Cited by:

    1. Vincenzo Varriale & Antonello Cammarano & Francesca Michelino & Mauro Caputo, 2021. "Sustainable Supply Chains with Blockchain, IoT and RFID: A Simulation on Order Management," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    2. Juliet Orji, Ifeyinwa & Ojadi, Frank & Kalu Okwara, Ukoha, 2022. "The nexus between e-commerce adoption in a health pandemic and firm performance: The role of pandemic response strategies," Journal of Business Research, Elsevier, vol. 145(C), pages 616-635.
    3. Xiaohu Qian & Mingqiang Yin & Felix T. S. Chan & Kai Yue, 2023. "Winner Determination with Sustainable-Flexible Considerations Under Demand Uncertainty in Transportation Service Procurement Auctions," Networks and Spatial Economics, Springer, vol. 23(4), pages 953-984, December.
    4. Pal Singh, Satender & Adhikari, Arnab & Majumdar, Adrija & Bisi, Arnab, 2022. "Does service quality influence operational and financial performance of third party logistics service providers? A mixed multi criteria decision making -text mining-based investigation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).

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