Systematic Approach to Optimizing «Cost/ Service» Balance for Online Stores
MAGAZINE №1 (90) February 2019
AUTHORS
MELIHOVA K.I. - Junior project manager, Operational Management, LLC «Kupishuz» (Moscow, Russia)
STEPANOVA M.D. - Junior project manager, Operational Management, LLC «Kupishuz» (Moscow, Russia)
CATEGORY Analytics and reviews E-commerce corporate logistics Logistics service management Return flows management (reverse logistics)
ABSTRACT
This article indicates the most significant trends in the logistics of online trading. The conditions for providing delivery services (delivery time, delivery cost, and interval policy) were gradually analyzed on the example of two key online-fashion retails for the Russian consumer, Lamoda and Wildberries, and the possibility of changing the delivery time for Lamoda by using more profitable way of transportation without customer loss was also assessed.
In Lamoda Company, the reverse logistic provider choice is carried out through a tender using the Rating Method which takes into consideration the requests of only one key structural unit - the Network Department. However, this evaluation system is not sufficiently effective as it does not include the criteria significance of the other Company Departments. Considering the service requirements from the side of Indirect Purchases Department, the Distribution Center, the Department of Financial Control and other Lamoda Departments, the authors proposed the Preference Category Method which provides a more relevant decision due to ntegration with the Rating Method.
The system approach to optimize the “cost / service” balance is considered in the article through the prism of the conditions of guaranteed goods availability in different regions of onine-sales at the lowest possible delivery rates based on the costs of both direct and reverse logistics.
Keywords: