Sara Verlinde

Retailers and consumers are increasingly “omnichannel”. This means that retailers offer multiple integrated offline and online channels to their customers, while consumers use multiple offline and online channels throughout their shopping journeys. In these shopping journeys, consumers can travel for researching, testing, receiving and returning activities related to a purchase, next to the purchasing itself. It is unclear how such omnichannel consumer behaviour materialises in practice. This information is important for practitioners from retail as well as for society, not in the least because of the environmental impact that shopping trips generate. Existing environmental assessments of retail-related transport and logistics do not account for consumers’ omnichannel shopping and travel behaviour. To fill this gap in research, we set up a case-study collaboration with an omnichannel footwear retailer in Belgium. We collected data on logistics and consumer flows and analysed this data to determine the CO₂ footprint. Our research results in six profiles, of which “the online shopper” that shops online and receives its purchase at home or at a collection point generates the lowest impact. However, when online shoppers travel to stores prior to their e-purchase and become “showroomers”, the external CO₂ costs double compared to “traditional shoppers” that carry out all shopping activities in-store and are more than eight times higher compared to “online shoppers”. Although the case-study context should be taken into account (e.g., in terms of product type, retailer type and geography), a sensitivity analysis demonstrates the robustness of our results.

Purpose: The purpose of this paper is to identify in what way logistics service providers are involved in the logistics operations of omnichannel retailers. Given the importance of logistics in omnichannel retail and the complexities that it brings forth, it is unclear if the current tendency towards logistics outsourcing continues, and how logistics service providers should adapt to remain relevant in the omnichannel retail environment. Design/methodology/approach: The research draws on both desk and field research. The authors analysed the scientific information available on omnichannel retail logistics and conducted semi-structured expert interviews with food and non-food retailers that adopt an omnichannel model. Findings: The research demonstrates distinct differences between food and non-food retailers. While food retailers are inclined to organise fulfilment and last mile activities in-house, non-food retailers partner closely with logistics service providers. Nonetheless, the store network of non-food retailers is attracting a growing part of logistics activities, which retailers are building themselves. To sustain their relevance in the omnichannel environment and strengthen their position for the future, the authors created a competency recommendation framework for logistics service providers, in which service differentiation is proposed as a viable direction for growth. Research limitations/implications: The research is based on insights from retailers based in the Brussels-Capital Region (Belgium) and requires further and wider testing in other contexts and geographical areas. Practical implications: The findings have strategic importance for retailers that are developing an omnichannel retail model and logistics service providers that (aim to) serve clients and operate activities within the retail sector. Originality/value: The research provides a holistic view of logistics in omnichannel retail by identifying insourcing and outsourcing mechanisms and developing competency recommendations to fulfilment, internal transport and last mile transport in omnichannel retail.

Purpose: Currently, it is unclear how omnichannel retailers can create a last mile offer that is both attractive and sustainable from an economic and environmental point of view. The purpose of this paper is to explore to which extent consumers are willing to adopt last mile options that are more sustainable and how these options should be composed to remain attractive.Design/methodology/approach: To this end, the authors surveyed a representative sample of Belgian consumers, using choice-based conjoint experiments, and analysed their preferences structures.Findings: Consumers’ preference goes out to free, next day delivery to an address of choice, on regular office hours during the week. However, when free delivery and return are offered, consumers are willing to collect their orders themselves or wait longer for their orders to arrive.Practical implications: The research findings are important for retailers that (plan to) operate an omnichannel model. For omnichannel retailers with a dense store network, the results indicate that consumers accept their store network as pick-up and return locations, allowing retailers to create a more efficient and sustainable supply chain in which their online and offline activities can be combined.Originality/value: The research findings contribute to current literature and practice by combining “planet” and “profit” components of sustainability in last mile transport and applying it in the novel omnichannel environment.

Last mile deliveries in urban areas cause a disproportionate unsustainable impact, while it is also the most expensive part of the supply chain. This is particularly true for freight flows that are characterized by fragmentation. Logistically, this becomes apparent in vehicles that are driving around with a low vehicle fill rate, leading to the unnecessary presence of freight vehicles in our cities. This study focuses on the operational feasibility of utilizing the spare transportation capacity of a service-driven company as a potential solution to supply small independent retailers, or nanostores. The aim is to reduce inefficient vehicle movement. Based on a real-life implementation, we use SYnchronization Model for Belgian Inland Transport (SYMBIT), an agent-based model, to simulate various bundling scenarios. Results show the total vehicle kilometers and lead times to supply nanostores for the service-driven company to serve its customers. There is a potential to utilize spare capacity to supply nanostores while maintaining a decent service level. The number of vehicle kilometers driven highly depends on the location of the distribution center where the service-driven company operates. Based on these results, the conditions that have to be met to replicate this solution in other urban areas are discussed.