Strategic supply chain choices for multi-channel Internet retailers |
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Authors: | Richard Metters Steve Walton |
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Institution: | (1) Goizueta Business School, Emory University, 1300 Clifton Road, Atlanta, GA 30322-2710, USA |
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Abstract: | Multi-channel retailing—selling through multiple, distinct channels—has been a part of the retail industry as long as there
have been main street merchants selling through catalogs. Since the mid-1990s, however, multi-channel retailing has increased
dramatically due to traditional retailers selling over the Internet. This trend presents considerable operational challenges
because Internet and traditional retail have vastly different demand drivers, product variety issues, optimal inventory configurations,
cost structures, supply chain structures, and delivery mechanisms. Consequently, the optimal supply chain configuration for
Internet delivery differs considerably from the optimal supply chain configuration for a retail store structure, so designing
a supply chain system to serve both channels well is difficult. Accordingly, a set of strategic choices and trade-offs must
be made. Here, we present some strategic alternatives. |
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Keywords: | Typology Supply chain Retail Theory-building Internet Multi-channel distribution |
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