Performance Measurement of E-commerce Collection and Delivery Points

Abstract

Collection and delivery points have become increasingly important due to the current e-commerce trend. In addition to the general rise within e- commerce the extraordinary situation with an ongoing SARS-CoV-2- pandemic has further increased the demand for sufficient parcel deliveries. The purpose of this master thesis has been to investigate how different stakeholders connected to e-commerce measure performance of collection and delivery points. Observations and interviews with distribution companies, omni-channel retailers and parcel agents have been conducted. This thesis also aims at investigating whether the current way of measuring performance can be improved and how that then would be possible. Collection and delivery points for e-commerce deliveries, including parcel lockers, parcel agents and in-store pickup, lies within the scope of this thesis. The current situation has been analyzed by mapping out the performance indicators currently used by the different stakeholders. Potential of improvement has then been identified. The result shows that stakeholders, as well as the society in general, could benefit from an applied system perspective. Suboptimization, both within and between different groups of stakeholders, could be avoided if a holistic system approach for performance measuring were to be implemented. Incitements for collaboration could also arise as a result of implementation. This thesis also addresses the greatest challenges related to the implementation of a system perspective. The challenges are mainly comprised by the lack of cost and benefit sharing as well as reluctance to share information and data. The prospect of the realization of this master thesis is to provide stakeholders connected to e-commerce deliveries with a new approach to performance measurement. By applying a holistic view, synergies could be created, and the efficient frontier be moved forward.

Popular Abstract

Performance measurement of collection and delivery points currently suffer from suboptimization. Stakeholders connected to e-commerce deliveries lack a holistic perspective due to existing relationships. By collaboration and a holistic system approach synergies could be created and the efficient frontier extended.
In a world where online-shopping has become more common, well performing last mile delivery solutions has become increasingly important. The distribution of e-commerce deliveries has also been put under new pressure due to the ongoing ​SARS-CoV-2​ pandemic. Performance measurement is vital to ensure a well performing and improving distribution network. An important aspect of improved performance is to make sure that the right things are being measured. To investigate what stakeholders connected to e-commerce deliveries measure related to their performance today a thesis on the subject was realized. It was investigated what challenges the stakeholders experience in regard to measuring their performance and how a holistic system approach could make a difference. The stakeholders in focus of the thesis were distribution companies, omni-channel retailers and parcel agents. The three collection and delivery points investigated in the thesis were parcel agents, parcel lockers and in-store pickup. In order to understand the studied field in a better way, observations were carried out, observing the collection and delivery points covered in the thesis. To reach the purpose of the thesis, and understand the current situation, interviews were conducted with regard to the main stakeholders and mentioned collection and delivery points. The collected data was analyzed using a model based on three different levels of performance; societal, strategic and operational. The analysis was carried out by putting the performance indicators identified during the interviews with the stakeholders into the model based on the three levels. When analysing the obtained model it was identified that suboptimization, both within and between different groups of stakeholders, occurred. After reasoning about existing relationships between stakeholders the conclusion was drawn that suboptimization could be avoided if a holistic system approach for performance measuring were to be implemented. The result shows that stakeholders, as well as the society in general, could benefit from an applied system perspective. By applying a holistic perspective a more efficient overall distribution system for e-commerce deliveries could be obtained. Furthermore, the thesis discusses that implementing the suggested holistic system approach can be associated with challenges which affects the feasibility of the realization.

• author: Gunnarsson, Maja and Nilsson, Jessica
• supervisor: Daniel Hellström; John Olsson
• organization: Packaging Logistics
• course: MTTM10 20211
• year: 2020
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: performance measurement, performance indicators, collection and delivery points, parcel locker, parcel agent, in-store pickup, system perspective
• language: English
• id: 9027986
• date added to LUP: 2020-09-03 10:45:07
• date last changed: 2020-09-03 10:45:07