E-tailer's procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers

Guo Li; Xuefeng Zhang; Mengqi Liu

doi:10.1016/j.tre.2019.08.014

E-tailer's procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers

Guo Li, Xuefeng Zhang, Mengqi Liu^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

30 Citations (Scopus)

Abstract

This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer's choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.

Original language	English
Pages (from-to)	108-127
Number of pages	20
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	130
DOIs	https://doi.org/10.1016/j.tre.2019.08.014
Publication status	Published - Oct 2019

Keywords

Competition
Decision structure
Drop-shipping
E-Commerce
Procurement strategy

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10.1016/j.tre.2019.08.014

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title = "E-tailer's procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers",

abstract = "This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer's choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.",

keywords = "Competition, Decision structure, Drop-shipping, E-Commerce, Procurement strategy",

author = "Guo Li and Xuefeng Zhang and Mengqi Liu",

note = "Publisher Copyright: {\textcopyright} 2019 Elsevier Ltd",

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AU - Li, Guo

AU - Zhang, Xuefeng

AU - Liu, Mengqi

PY - 2019/10

Y1 - 2019/10

N2 - This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer's choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.

AB - This paper examines the effect of drop-shipping on the procurement strategy of an e-tailer who sells products for two upstream competing manufacturers. The e-tailer is powerful and determines her approach sequence, thereby resulting in simultaneous and sequential structures. Given an approach structure, we investigate the e-tailer's choice between the pure batch ordering (BO) and hybrid shipping (HS) modes. Interestingly, the e-tailer prefers simultaneous structure over sequential structure in the BO mode, while in the HS mode she chooses sequential structure. In the HS mode, the e-tailer prefers the batch ordering manufacturer to move first.

KW - Competition

KW - Decision structure

KW - Drop-shipping

KW - E-Commerce

KW - Procurement strategy

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VL - 130

SP - 108

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JO - Transportation Research Part E: Logistics and Transportation Review

JF - Transportation Research Part E: Logistics and Transportation Review

ER -

E-tailer's procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers

Abstract

Keywords

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