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Split Deliveries in Fashion E-commerce

Andersson, Markus and Johansson, Oskar (2017) MIO920
Production Management
Abstract
Background H&M Online has experienced rapid growth over the last years and is now
present in Europe, North America and Asia. To be a successful fashion etailer,
companies need to overcome typical fashion challenges such as
seasonality, short product life cycles and a constantly changing customer
demand. In addition, companies must learn to master the special
characteristics of e-commerce such as a web-based customer interface,
heavy return flows and expensive last mile deliveries. The growth of ecommerce
has brought new challenges upon fashion supply chain
management. One of these is the problem of split deliveries which is both
costly and dissatisfying to customers.
Purpose The purpose of this thesis is the develop a framework... (More)
Background H&M Online has experienced rapid growth over the last years and is now
present in Europe, North America and Asia. To be a successful fashion etailer,
companies need to overcome typical fashion challenges such as
seasonality, short product life cycles and a constantly changing customer
demand. In addition, companies must learn to master the special
characteristics of e-commerce such as a web-based customer interface,
heavy return flows and expensive last mile deliveries. The growth of ecommerce
has brought new challenges upon fashion supply chain
management. One of these is the problem of split deliveries which is both
costly and dissatisfying to customers.
Purpose The purpose of this thesis is the develop a framework for how an e-tailer,
like H&M Online, can reduce the number of split deliveries during an
ongoing season in a virtual pooling dual warehouse scenario.
Furthermore, to apply the framework at H&M Online to determine its
potential impact in a real world scenario and to find new concrete policies
that results in increased value for H&M Online.
Methodology This thesis project was conducted in two distinct phases. First, a
framework for reducing split deliveries in fashion e-commerce was
developed using a single case study at H&M Online. The framework was
then applied to H&M Online evaluate current decision policies and to
develop new better policies using an operations research approach.
Conclusions The number of split deliveries can be reduced by introducing new policies
to the four product flows that affect split deliveries; inbound deliveries,
transshipments, order fulfillment and returns. New policy decisions must
however be taken in a structured way so that other negative effects are
taken into consideration. In H&M Online case, the policy decisions will
depend largely on delivery costs for long distance deliveries to end
customers. (Less)
Please use this url to cite or link to this publication:
author
Andersson, Markus and Johansson, Oskar
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Fashion, E-commerce, Virtual Pooling, Split Deliveries, Simulation, Customer Satisfaction, Supply Chain Management
other publication id
17/5566
language
English
id
8903170
date added to LUP
2017-02-14 14:58:29
date last changed
2017-02-14 14:58:29
@misc{8903170,
  abstract     = {Background H&M Online has experienced rapid growth over the last years and is now
present in Europe, North America and Asia. To be a successful fashion etailer,
companies need to overcome typical fashion challenges such as
seasonality, short product life cycles and a constantly changing customer
demand. In addition, companies must learn to master the special
characteristics of e-commerce such as a web-based customer interface,
heavy return flows and expensive last mile deliveries. The growth of ecommerce
has brought new challenges upon fashion supply chain
management. One of these is the problem of split deliveries which is both
costly and dissatisfying to customers.
Purpose The purpose of this thesis is the develop a framework for how an e-tailer,
like H&M Online, can reduce the number of split deliveries during an
ongoing season in a virtual pooling dual warehouse scenario.
Furthermore, to apply the framework at H&M Online to determine its
potential impact in a real world scenario and to find new concrete policies
that results in increased value for H&M Online.
Methodology This thesis project was conducted in two distinct phases. First, a
framework for reducing split deliveries in fashion e-commerce was
developed using a single case study at H&M Online. The framework was
then applied to H&M Online evaluate current decision policies and to
develop new better policies using an operations research approach.
Conclusions The number of split deliveries can be reduced by introducing new policies
to the four product flows that affect split deliveries; inbound deliveries,
transshipments, order fulfillment and returns. New policy decisions must
however be taken in a structured way so that other negative effects are
taken into consideration. In H&M Online case, the policy decisions will
depend largely on delivery costs for long distance deliveries to end
customers.},
  author       = {Andersson, Markus and Johansson, Oskar},
  keyword      = {Fashion,E-commerce,Virtual Pooling,Split Deliveries,Simulation,Customer Satisfaction,Supply Chain Management},
  language     = {eng},
  note         = {Student Paper},
  title        = {Split Deliveries in Fashion E-commerce},
  year         = {2017},
}