Investigation and Analysis of Omni-channel Logistics Models: A
Study in the Retail Industry in Indonesia
Eliot Simangunsong, and Ivan Evander Subagyo
Department of Operations & SCM, Universitas Prasetiya Mulya, JL. RA. Kartini (TB Simatupang), Jakarta 12430,
Indonesia
Keywords: E-Commerce, B2C, Multi-channel, Omni-channel, Logistic.
Abstract: Retail industry has undergone several transformations over the years. 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.
1 BACKGROUND
Retail has undergone several transformations over
the years and encountered many shiftings. The main
cause is as a result of the digitalization that is
happening in business, transforming all processes
and, as an effect, consumer behavior (Waker, Nääs,
Duarte, & Papalardo, 2018). The internet has grown
rapidly as a commercial tool for retail owners in
conducting business. The advancement in
technology and internet connection infrastructure
that is easily accessible by smart phones has made
Indonesian consumers increasingly confident in
conducting online transactions. Consumers are
increasingly shifting from offline transactions to
online transactions. The size of the online shopping
market in Indonesia continues to increase, estimated
at 8.59 billion US dollars in 2018, up from 5.78
billion US dollars in 2016 (Statista, 2018). The trend
of e-commerce has given rise to many new express
shipping services. However, shipping services still
have problems including imperfect shipping
systems, poor service levels and inadequate
customer databases, unimproved mode of operation,
lack of scientific practice and efficiency in choosing
patterns, shipping modes and packaging services.
Online retailing, also known as e-commerce, has
dramatically increased the number of sales for the
past two decades, both nationally and globally.
These trends have prompted the immense
development of Internet-based retail just as the
difficulties and opportunities for the retail business.
The Amazon drove the way, setting up an incredible
upper hand over generally retailers. In June 2017,
Amazon reported it had procured Whole Foods, an
across the nation market chain in the United States,
with almost 500 stores, for $ 13.7 billion in real
money (Cusumano, 2017). It is also found that
omni-channel shoppers spending is 15-30 percent
34
Simangunsong, E. and Subagyo, I.
Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industr y in Indonesia.
DOI: 10.5220/0009198500340042
In Proceedings of the 2nd Economics and Business International Conference (EBIC 2019) - Economics and Business in Industrial Revolution 4.0, pages 34-42
ISBN: 978-989-758-498-5
Copyright
c
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
bigger than traditional shoppers’ (Murfield, Boone,
Rutner, & Thomas, 2017).
This development has made traditional stores
also move to sell online to compete with online
retailers that do not have physical stores. There was
an increase in slices between online and
conventional retail, mainly due to the fact that
traditional retailers expanded their activities to e-
commerce, thereby increasing turnover from online
sales. However, despite the expansion in online
deals, physical stores continue acts as the primary
shopping venue, and traditional stores adopt multi-
channel strategies or omni-channel strategies by
incorporating online sales into their business. Recent
research by IBM (2015) has shown that combination
of offline and online retail enable traditional stores
to provide resistance to pure online retail traders.
The study found that physical stores offer services
that cannot be achieved by pure online retail traders
using the right omni-channel model that requires
digital integration throughout the organization.
Hübner, Holzapfel, & Kuhn (2016) defines 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.
Generally, multi-channel logistics have separated
system for operation and logistic. Buyers get
products either in the store or through direct
delivery. Operational and logistical processes are not
integrated. An example is retail traders who have
offline stores and online stores that serve buyers
without operational coordination or exchange of
goods between channels. The third type is omni-
channel logistics, where retail buyers and traders do
not differentiate channels (Bell, Gallino, & Moreno,
2014; Brynjolfsson, Hu, & Rahman, 2013; Verhoef,
Kannan, & Inman, 2015). Simultant logistics
management is available, for example orders via e-
commerce can be processed through an offline store
or items in the store are used for shipping online
sales. Figure 1 provides an illustration and the
difference between the three types of logistics
channels.
Figure 1. Types of Logistic Channels
According to Zhang et al. (2018), the need to
understand the multi-channel and omni-channel
strategies is not new. Companies should be aware
that besides managing their channels, they need to
be aware of other strategies that will affect their
performance. Regardless of the channels used,
technology is crucial for retailers, specifically saying
in how they sell their goods and deliver them.
Technology enables a customer to connect with the
business in "all routes and all areas”, including
website, smartphones, PC or laptop, on TV and in-
store" (Saghiri, Wilding, Mena, & Bourlakis, 2017).
Here, customers can submit their requests in a single
channel, e.g., on a smartphone, then pick up the
purchased product through another channel, e.g.,
home delivery, and return items in a third channel
e.g., physical store (Brynjolfsson et al., 2013;
Saghiri et al., 2017). The challenge is to build a
business that utilize this multi channels including
inside logistics coordination of retailers and in the
structure and procedures of the store network/supply
chain. It is also important to investigate why and
how retailers use a single-channel logistics model to
multi-channel and omni-channel logistics. In
addition, there is an urgency to examine the logistics
model (as a combination of logistical variables) that
is optimally used by retail companies in
implementing omni-channel logistics strategies. The
study by PWC (2015) shows that omni-channel
logistics strategies are very important for the success
and prosperity of the future of the retail industry.
The objectives of this research are to investigate
why and how offline retail traders move from single-
channel logistics to omni-channel logistics and to
identify what is the relevant business logistics model
(as a combination of logistical variables)
implemented by the company in applying omni-
channel logistics strategy. The change in the
business paradigm from brick-and-mortar business
to online / internet business has caused problems in
managing the logistics system and distribution of
goods delivery. The omni-channel logistics concept
is a new reference for winning the competition.
Therefore, a comprehensive scientific study is
needed to fully understand the ideal omni-channel
logistics model in the Indonesian perspective and is
highly competitive. Existing logistical models must
be tested or validated for both endogenous and
exogenous variables that influence the optimization
of logistics management.
Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia
35
2 LITERATURE STUDY
The use of the internet as a commercial media has
developed rapidly, especially for retail traders in
conducting business activities. These business
activities, known as e-commerce, have managed to
increase sales significantly over the past two decades
in all major markets, both national and global.
Zwass (1996) defines e-commerce as "business
information disclosure, maintaining business
relationships and conducting business transactions
through telecommunications networks". E-
commerce uses an electronic transactions payment
system, generally through the internet or cellular
media, where consumers use computers and
smartphones to get information and shop online. E-
commerce processes and activities are a union of
business processes, information processes, payment
processes and logistics (Xianglian & Hua, 2013).
Logistics is very important in the context of e-
commerce business because it affects various
performance -measures such as product and service
availability, communication speed between buyers
and sellers, lead time, scope of activities, flexibility
and reliability of supply (Kadłubek, 2015). The
study by PWC (PWC, 2015) mentions that there are
three important conditions to be considered for the
success of the omni-channel logistics strategy. First
is the readiness of technological infrastructure. This
readiness is assessed from the sophistication of
network and communication technologies such as
the use of mobile Internet broadband and
smartphone penetration; services that offer products
and product promotions to buyers according to
where they are; sophisticated application that is able
to provide depth of product information, buyer
reviews and price comparisons. Second is the ability
to meet high buyer expectations. Buyers may
demand the same online shopping experience as
shopping offline. Third is the readiness of retailers
themselves. To run the omni-channel model, retail
traders need to transform their thinking, including
renewing organizational culture. They must be able
to strategize and treat online and offline businesses
as a whole. Likewise, system integration, application
development and innovation to attract buyers into
the company's ecosystem.
The large online shopping market in Indonesia
has reached 7 billion dollars in 2017 and is projected
to exceed 8.59 billion US dollars in 2018 (Statista,
2018). Table 1 shows media products, electronic
devices, clothing and shoes, food and beverages, and
home care are the five most dominant retail industry
categories in online retail in Indonesia.
Table 1. Online Sales based on the Retail Industry
Category
IDR billion 2015 2016 2017
Media product 8,153 11,129 14,306
Electronic
devices
7,061 8,322 9,406
Clothes and
shoes
4,859 5,708 6,080
Food and
b
everage
586 762 956
Home care 493 662 877
Health 478 556 629
Accessories 349.80 497.20 595
Beaut
y
313 393 440
Household
appliances and
furniture
243 314 399
Personal
e
q
ui
p
ment
190 231 336
Improved home
and
g
arden
14 19 25
Animal care 12 18 25
Sim
p
le
g
ames 3.7 4 6.4
Hardware in the
form of a game
0.4 0.4 0.5
Other online
retail
3,773 7,199 12,486
Total online
retail
26,535 35,822 46,573
The main activities in electronic commerce
generally consist of payment and logistics
information platforms (Hua & Jing, 2015). Logistics
part in e-commerce is not only to support the
platform or to engage the last link of e-commerce
last link, it is also happened to be the most crucial
factor in the success of e-commerce. However, once
the necessary infrastructure is available, the biggest
obstacle lies in the readiness of retail traders - or, in
other words, in focusing on how customer
experience it and their willingness to invest in a
EBIC 2019 - Economics and Business International Conference 2019
36
certain technology that helps the adoption of omni-
channel logistics strategies. (PWC, 2015). One of
the most significant drivers for selling goods online
is the best logistical strategy choice (Ghezzi,
Mangiaracina, & Perego, 2012).
It is a general idea that logistics involves
transferring physical goods from one location to
another (Lummus, Krumwiede, & Vokurka, 2001).
Logistics is the process of planning, implementing,
and controlling the flow of efficient, effective and
storage of goods, services and related information
from the origin to consumption point for the
destination according to the buyer's request. Joong-
Kun Cho et al. (2008) stated that there is a positive
relationship between logistics performance and
company performance in the e-commerce market.
Logistics performance here is an important
requirement to produce superior company
performance in the world of e-commerce.
From the literature studies that have been
conducted, it can be summarized that there are three
logistical model perspectives consisting of the
Classical Logistics Model, the Logistics Model with
the Integration of Functions and Processes, and the
Omni-channel Logistics Model. The Classical or
Traditional Logistics Model starts from the order
transaction by the customer, continues with a trip to
the store, picking up the goods which is continued
from the distribution center, to a smaller distribution
place, then directly to the destination (customer).
The second logistics models have function &
process integration (Saghiri et al., 2017). In the
model, there are 4 main processes for logistics,
namely Pre-Purchase (referring to integrated
promotion), Payment (referring to transactions and
integrated pricing), Delivery (referring to integrated
order fulfillment), and Return (referring to reverse
logistics).
The third is the omni-channel logistics model
suggested in the study of Marchet, Melacini, Perotti,
Rasini, & Tappia, (2018). The omni-channel
logistics model shows four sets of processes, namely
delivery services, distribution arrangements,
fulfillment strategies and return management. In the
delivery service process, there are four logistical
variables, namely delivery mode, speed, time slot
and slot price differentiation. Furthermore, in the
distribution arrangement process there are three
variables, namely choosing locations, shipping
areas, and transportation services. In the third
process, namely the fulfillment strategy, there are
three variables consisting of automation, integration,
and order allocation. Whereas for return
management, there is the only logistics variable,
namely the return mode.
Figure 2. Omni-channel Logistics Model
Based on these three logistic models, we find
that the omni-channel logistics model (Marchet et
al., 2018) offers a more comprehensive logistic
model for managing logistics management. This
model has also been adapted to e-commerce, so that
each variable is more suitable for e-commerce. In
addition, because this model has just been published,
this model is considered more suitable for the
current situation.
3 METHOD
This study consists of four stages: first, the
definition of the scope of the relevant research in the
perspective of omni-channel logistics. Second,
literature studies to understand the development of
the latest research for the scope of research. Third,
identification of gaps in existing studies to create
research designs. The fourth and final stage is to
carry out the research design.
This study uses an empirical quantitative
approach in the form of a survey. Surveys are
quantitative research methods that use a standard
format, for example questionnaires, which are used
to define or explain variables, and to analyze
relationships between variables (Malhotra & Grover,
1998). The research framework was adapted from
the study by Marchet (2018), consisting of four areas
of the company's logistical decisions namely:
shipping services, distribution arrangements,
fulfillment strategies and return management. Each
logistic decision field (also called endogenous
variable) consists of different logistical variables
(also called exogenous variables) that represent the
Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia
37
design parameters to be applied, with several options
available for each variable. The first factor has 4
items that refer to Shipping Mode. While the second
factor has 3 items that refer to distribution
arrangements. The third factor has 3 items that refer
to the fulfillment strategy, and the last is the fourth
factor with 1 item that refers to the return
arrangement.
The survey questionnaire prepared in this study
will be distributed to the main respondents, namely
companies engaged in the retail industry. The use of
companies as respondents in logistics research was
common in past studies, i.e. study by Joong-Kun
Cho et al. (2008), Ghezzi et al. (2012), and Marchet
(2018). The survey data obtained will then be
analyzed using descriptive statistical analysis and
parametric statistics to identify dominant factors and
see the relationships between variables to get
answers to the research questions set in the purpose
of this study.
4 RESULTS AND DISCUSSION
This study, based on the results of a survey of
traditional retailers, describes the extent and
operational nature of their logistics operations and
examines the statistical profile of traditional
retailers. Differential demographic, behavioral, and
attitudinal characteristics of respondents are
provided. From 114 respondents, 70 respondents (or
61.4% of total respondents) are retail stores that
have both offline and online stores. There are 42
respondents whose store profile are both offline and
online have integration in fulfilling buyer’s orders.
This profile has the highest number of respondents
compared to the other profiles and it represents
36.8% of total respondents. The other 28
respondents are stores that do not have integration
between their offline and online-based operations.
Then, there are 44 respondents that only have an
offline store, either with no branches or with
branches / warehouse. The distribution of
respondents suits the objective of this research in the
context of omni-channel logistics. Table 2 presents
the respondents profile.
Table 2. Frequency distribution of respondents
Fre
q
uenc
y
Percenta
e
Offline onl
y
, no branches 23 20.2
Offline only, with branches
or warehouse
21 18.4
Offline and online, with
integration in fulfilling
b
uyer orders
42 36.8
Offline and online, no
integration in fulfilling
b
u
y
er orders
28 24.6
Total 114 100.0
All respondents were retailers located in Great
Jakarta area and focusing their business on
electronic devices. Most are doing business in big
shopping malls in central Jakarta and the rest are
small street stores. From the total of 114
respondents, there were more male respondents than
female respondents. There were 63 male respondents
(55.3% of total respondents), while the remaining 51
people are female respondents (44.7% of total
respondents). Table 3 presents the frequency of
respondents job status. 71.9% respondents were
permanent workers (82 people). This number is the
highest number compared to other employment
statuses. Then 13.2% respondents are part-time
workers. There were also respondents who owned
direct retail shop. These respondents were divided
into 2, which were owners who worked full time
(10.5%) and owners who worked part time (2.6%).
Two respondents (1.8%) were relatives to the store
owner. Therefore, 97 respondents (85.1%) whose
status were workers and 15 respondents (13.1%)
whose status were shop owners.
Table 3. Type of respondent’s job status
Respondents job status Frequenc
y
Percentage
Store owner (work full time) 12 10.5
Store owner (work part
time)
3 2.6
Family (Child, Wife, Close
relative
)
2 1.8
Permanent worker
(
Staff
)
82 71.9
Part-time worke
r
15 13.2
Total 114 100.0
EBIC 2019 - Economics and Business International Conference 2019
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Customers of the respondents are end customers,
resellers or both of them. Most respondents (69.3%)
are retail stores that have both end customers as well
as resellers. There are stores that only serve end
customers (28.9%), while only 2 stores serve only
resellers (1.8%). Table 4 presents type of product
sold by respondents. From 114 respondents, there
were 107 respondents who expressed their primary
products and 98 respondents who also expressed
their secondary products. For primary products, the
highest number is handphone, followed by laptop,
handphone accessories, computer accessories, PCs
and laptop accessories. No respondents mention
tablets for primary products. For secondary
products, handphone accessories is the highest,
followed by laptop accessories, computer
accessories, laptops, PCs, mobile phones, and
tablets. Therefore, it is reasonable to assume that the
items that most often sold by our respondents from
the survey results are handphone and handphone
accessories.
Table 4. Type of product sold by respondents
Type of product Primar
y
Secondar
y
Total
Handphone 40 9 49
Laptop 33 10 43
PC 9 10 19
Tablet 0 1 1
Hand
p
hone Accessories 11 34 45
La
p
to
p
Accessories 4 22 26
Computer Accessories 10 12 22
Total 107 98
Handphone and Laptop are the two most popular
products for electronic retailers. As can be seen
from Table 5, offline and online stores without
integration in fulfilling buyer’s orders has the
highest range of average revenue for both products.
The second rank is offline only stores with branches
/ warehouses for hand phones and Offline and online
stores with integration for laptops. Stores with the
lowest average revenue is offline only stores without
branches for both products. Thus, it is reasonable to
assume that handphones and laptops are best sold in
offline and online stores without integration in
fulfilling buyer’s orders.
The result of the analysis also shows that most
transactions (80%) are offline, which means that
buyers have to go to the retail stores to claim their
products. Although offline and online stores without
integration in fulfilling buyer’s orders have the
highest sales among other types of stores, only about
10% of the transaction is online transaction in which
products are delivered to the customers. Multi-
channel retailers tend to have bigger revenues than
omni-channel retailers. The main reason of this
phenomenon probably the multi-channel retailers are
most likely big store, while omni-channel retailer is
a novel thing in Indonesia; these stores tend to be in
the development stage.
Table 5. Handphone and Laptop Sales per-Retailer
Average Monthly
Sales
(in hundred million
Rupiah)
Type of Retaile
r
Handphone Laptop
Offline only, no branches 2.80 2.25
Offline only, with branches or
warehouse
5.18 3.00
Offline and online, with
integration in fulfilling buyer
orders
3.57 4.25
Offline and online, no
integration in fulfilling buyer
orders
5.90 4.82
Average 4.50 4.00
The next analysis is inferential statistics using
SPSS. The first analysis is to test whether different
types of store‘s profile have any differences on sales.
Using ANOVA test, we find F-value = 3.967 and a
small p-value = 0.01. It means at alpha 5%, reject
the null hypothesis or there is at least 1 store’s
profile that has different amount of sales. Based on
the descriptive statistics, offline and online stores
without integration has the highest monthly revenue,
which is Rp. 200-250 million and the lowest is
offline only retailers without branches with range of
monthly revenue Rp. 50-100 million. These suggest
that omni-channel logistic system is not necessarily
needed by retail stores in Indonesia. The result of
hypothesis test can also imply that offline retail
stores without any branch in Indonesia have two
ways to increase their sales. The first way that can
Investigation and Analysis of Omni-channel Logistics Models: A Study in the Retail Industry in Indonesia
39
be done is by opening branches or warehouses in
different places. However, this first way is hard to be
done due to the requirement of high capital. The
second way that can be done is to open an online
store to reach more customers in other places.
Table 6 presents further ANOVA test (Post Hoc
Tests) using Tukey’s HSD. Post Hoc Tests using
Tukey’s HSD which compare offline only retailers
(no branch) with offline-online retailers (no
integration) shows small p-value (0.007). This also
confirms that retailers with offline only operations
(single channel) have different sales performance
compared to retailers that combine offline and online
operations (multi-channel).
Table 6. Post Hoc Tests using Tukey’s HSD
(I) Profile (J) Profile Mean
Diff (I-J)
Std.
Erro
r
Sig.
Offline
only, no
b
ranches
Offline only,
with branches
or warehouse
-1.827 0.786 0.1
Offline and
online, with
integration in
fulfilling buyer
orders
-1.149 0.687 0.344
Offline and
online, no
integration in
fulfilling buyer
orders
-2.451* 0.740 0.007
Dependent Variable: Monthly sales revenue
* The mean difference is significant at the .05 level.
The second hypothesis test is to understand
delivery service where different types of retailers
may have any differences in terms of time slot and
price differentiation. Time slot means buyer may
determine the hours / time when the goods will
arrive at the buyer's place. Price differentiation in
delivery service occurs when each selected time slot
has a different price depending on the seller. After
conducting ANOVA test, researcher get a p-value
0.099. Since the p-value is greater than alpha (0.05),
we fail to reject H0. Thus, it can be concluded that
every retailer does not have any differences in terms
of slot time and price differentiation.
The third hypothesis test is to understand how
retailers have any differences in the availability of
dedicated resources (space and staff) to serve
buyers. Since the p-value is less than alpha (0.05), it
can be implied that researcher rejects H0 or there is
at least one store type that has differences in the
existence of dedicated resources (space and staff)
that are optimally used in terms of work time
efficiency and buyer service. As seen from Table 7,
it is the Offline and online, with no integration in
fulfilling buyer orders. The descriptive statistics
shows there are 50% offline and online stores
without integration have optimally used dedicated
resources in fulfilling buyer’s orders. Researcher
presumes that these stores have the most sales, but
they do not have integrated stocks and systems
between channels. Thus, it is necessary for those
stores to have dedicated resources (space and staff)
in order to stabilize their sales with their stocks and
their lead times. On the contrary, offline and online
stores with integration in fulfilling buyer’s orders
seem to be the least to use dedicated resources
system. In fact, there are only 9.5% online and
offline stores with integration use dedicated
resources system. It is reasonable to assume that this
type of stores does not need this dedicated resources
because the stocks and systems between each
channel are already integrated, enabling them to
control the availability of stocks and lead times.
Table 7. Post Hoc Tests using Tukey’s HSD
(I) Profile (J) Profile Mean
Diff
(
I-J
)
Std.
Error
Sig.
Offline and
online, no
integration
in fulfilling
b
uyer orders
Offline
only, no
branches
.326* 0.109 0.018
Offline
only, with
branches
or
warehouse
.357* 0.112 0.010
Offline
and
online,
with
integration
in
fulfilling
buyer
orders
.405* 0.094 0.000
Dependent Variable: The availability of dedicated
resources (space and staff) to serve buyers
* The mean difference is significant at the .05 level.
EBIC 2019 - Economics and Business International Conference 2019
40
5 CONCLUSIONS
This study shows the extent and operational nature
of logistics operations in traditional electronic
retailers. Differential demographic, behavioral, and
attitudinal characteristics of respondents are
provided. Handphone and Laptop are the two most
popular products for electronic retailers. Offline and
online stores without integration in fulfilling buyer’s
orders has the highest range of average revenue for
both products while stores with the lowest average
revenue is offline only stores without branches for
both products. The result of the analysis also shows
that most transactions (80%) are offline, which
means that buyers have to go to the retail stores to
claim their products. Multi-channel retailers tend to
have bigger revenues than omni-channel retailers.
The main reason of this phenomenon probably the
multi-channel retailers are most likely big store,
while omni-channel retailer is a novel thing in
Indonesia; these stores tend to be in the development
stage.
After conducting an analysis test using the SPSS
application, it can be concluded that there are 3
important factors that can increase total sales and
revenues of retail stores. These 3 factors are time
slots that have different prices in product delivery,
the existence of dedicated resources (space and staff)
that are optimally used in terms of work time
efficiency and buyer service, and the ability for
consumers to see every good / stock in all shops /
warehouses (not limited in only 1 shop). In the
Marchet table (2018), time slots with different prices
is the “yes” option in the delivery service category
with slot price differentiation logistics variable. The
existence of dedicated resources (space and staff)
that are optimally used in terms of work time
efficiency and buyer service is the “capacity-
optimized and integrated” option in the fulfillment
strategy category with integration logistics variable.
The last factor, which is the ability of consumers to
see every good in all shops / warehouses, is the
“dynamic” option in the fulfillment strategy
category with order allocation logistics variable.
ACKNOWLEDGEMENTS
The authors gratefully acknowledge that the present
research is supported by Universitas Prasetiya
Mulya. The support is under the research grant of
Year 2018.
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