Investigation and Analysis of Omni-channel Logistics Models: Study in the Retail Industry in Indonesia
Eliot Simangunsong, Ivan Evander Subagyo
School of Business and Economics
Universitas Prasetiya Mulya
JL. RA. Kartini (TB Simatupang)
Jakarta 12430
Abstract
Retail industry has undergone several transformations over the years. Currently 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.
Keywords: E-Commerce; B2C; Multi-channel; Omni-channel; Logistic
Topic: Management