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A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions

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  • Marco Melacini

    (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, 20156 Milano, Italy)

  • Elena Tappia

    (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, 20156 Milano, Italy)

Abstract

New opportunities and challenges forced by the ever-increasing importance of the online channel have arisen for retailers. The retailing industry is moving to a new phase, in which the distinctions between traditional and online channels disappear, namely omni-channel (OC) retailing. At the same time, the awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers. The new challenge is to understand how multiple channels can be synergistically managed to provide a seamless customer experience, taking an economic and environmental perspective simultaneously. Retailers need to define the distribution configuration for serving the online demand, making decisions on the integration level between online and traditional channels. In this paper, we developed an assessment model of the operational costs and greenhouse gas emissions for three distribution configurations in OC retailing. The model was also applied to a real case operating in the consumer electronics industry. Results highlighted that the search for synergies between online and traditional flows in both warehouse and transport activities is a key factor for the economic and environmental sustainability of OC systems.

Suggested Citation

  • Marco Melacini & Elena Tappia, 2018. "A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions," Sustainability, MDPI, vol. 10(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:307-:d:128568
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    Cited by:

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    2. Roman Domanski & Lukasz Hadas & Hubert Wojciechowski, 2021. "Consumer Preferences for Omnichannel Customer Service in the Consumer Electronics Industry," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 5), pages 552-561.
    3. Buldeo Rai, Heleen, 2021. "The net environmental impact of online shopping, beyond the substitution bias," Journal of Transport Geography, Elsevier, vol. 93(C).
    4. Sergio Pardo-Jaramillo & Andrés Muñoz-Villamizar & Ignacio Osuna & Rolando Roncancio, 2020. "Mapping Research on Customer Centricity and Sustainable Organizations," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    5. Rafael Villa & Marta Serrano & Tomás García & Gema González, 2023. "To Green or Not to Green: The E-Commerce-Delivery Question," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    6. Katrzyna Szymczyk, 2020. "The level of omnichannel use in Polish MSMEs," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 30(3), pages 113-122.
    7. Ardavan Babaei & Majid Khedmati & Mohammad Reza Akbari Jokar & Erfan Babaee Tirkolaee, 2022. "Performance Evaluation of Omni-Channel Distribution Network Configurations considering Green and Transparent Criteria under Uncertainty," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    8. Heleen Buldeo Rai & Koen Mommens & Sara Verlinde & Cathy Macharis, 2019. "How Does Consumers’ Omnichannel Shopping Behaviour Translate into Travel and Transport Impacts? Case-Study of a Footwear Retailer in Belgium," Sustainability, MDPI, vol. 11(9), pages 1-19, May.

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