1st Edition

Internet Retail Operations Integrating Theory and Practice for Managers

    268 Pages 92 B/W Illustrations
    by CRC Press

    The increasing popularity of online shopping makes Internet retailing a megatrend that cannot be ignored. The collaboration of two co-authors bringing academic rigor and broad consulting experience into the mix, Internet Retail Operations: Integrating Theory and Practice for Managers offers enduring insights on operational issues and principles for the management of internet supply chains.

    Covering a range of emerging issues supported by a variety of case studies, the book details the evolution of information technology’s role in retail supply chain networks, its impact on supply chain networks, and how this has changed service operations. It addresses information technology in relation to service and retail industries, then explores how supply chain dynamics impact traditional service and retail delivery, the costs involved, and customer satisfaction and loyalty. It includes tables, vignettes, and graphs that make the content practical and relevant.

    As you will learn, many attempts at internet retail do not succeed, some because they fail to appreciate the fundamentals, others may have simply been ahead of their time. Many years of experimentation and growth lie ahead. Drawing equally on theory, research results, and real-world experience, the book provides strategies for overcoming the challenges of building operations capability in the evolving world of Internet retailing.

    Internet Retailing: From Experimentation to Execution
    Lessons of the Last Bubble
    The Unfolding Story

    The World Wide Web and Information Technology
    What Do We Mean by the Internet?
    Technological Advances in the World Wide Web That Enabled the Commercial Adoption of the Internet
    Internet Business Models: A Framework
    Characterizing Internet Retailing Models
    The Role of Merchandise, Services, Promotions, Navigation, and User Interfaces in the Success of Internet Retailing Ventures
    Internet Commerce Functionality and Its Potential to Generate Value in the Supply Chain
    Web-Enabled Cost Efficiency and Customer Benefits
    Web-Enabled Collaboration among Individuals

    Scale Economies and the Network Effect in Internet Retailing
    Scale Economies
    Network Effects
    Economies of Scope
    Defense versus Offense

    Operations Strategy for the Internet
    Operations Strategy
    From Manufacturing to Operations Strategy
    Structural Decisions
    Operations Capabilities
    From Theory to Practice?

    Supply Chain Management for a Virtual World
    Long Tails and Unlimited Shelf Space in Internet Retailing
    Demand Management
    Multichannel Retailing: Combining Internet and Brick-and-Mortar Channels

    Defining the Value
    What Are the Main Internet Services That Exist in a Supply Chain Context?
    How Can the Internet Be Used to Offer Services That Contribute to the Development of Competitive Advantages?

    Outsourcing Internet Retail Operations
    Internet Retailing Decisions to Outsource Their Distribution Facilities’ Footprint
    Logistics Outsourcing Decisions in the Broader Internet Retailing Context
    Conclusions and Implications

    Understanding the Drivers of Cost-to-Serve
    The eBags Story
    Trial and Error
    Future Growth
    Accounting for Intangibles

    The Last-Mile Challenge
    First-Mover Delivery Models
    Limited Online Sales
    The Role of Delivery Economics
    High Last-Mile Costs
    New Trade-Off: Speed versus Variety
    Entrenched Competitors
    The New Intermediaries
    Store and Office Solutions
    Labor-Saving Models
    Continued Experimentation

    Managing Product Returns
    The Magnitude of Product Returns in Internet Retailing
    Tackling Product Returns
    The Role of Third-Party Specialists
    Key Principles for Internet Retailers to Follow
    Managing Internet Product Returns: A Focus on Effective Service Operations
    Challenges and Opportunities in Remarketing Product Returns

    Amazon: Supply Chain Strategy and Innovation
    Amazon’s Structural Decisions
    Amazon’s Operational Decisions
    Keeping the Virtuous Cycle Moving Forward

    The Last Mile
    The Deutsche Post Pilot
    The Packstation 24 Trial Run
    The ADM
    Entering the U.S. Market
    Partnering with E-Tailers

    FreshDirect: Expansion Strategy
    FreshDirect: Home Grocery Delivery
    Beef Industry Background
    Cattle Farmers
    Feedlots and Slaughterhouses
    Grocery Stores
    Direct Retail: Omaha Steaks
    Direct Retail: Online Grocer
    Farm to Fork: Supply Chain Coordination
    A Question of Priorities

    Musictoday, LLC: Managing Inventory for Night Train
    From One Band to Many
    The Problems of Success
    Getting the Train Back on Track
    Train at the Crossing

    Better World Books
    Company Background
    Company Culture
    Used-Books Industry
    The Internet as Vehicle for Books Sales
    Supply Chain of Internet Book Retailing
    Value Proposition
    The South Bend Facility
    Expansion Options

    Company History
    Overview of Kitchenware Industry
    Cost-to-Serve Drivers

    RelayFoods.com, Inc
    RelayFoods.com’s History
    U.S. Grocery Stores and Supermarkets
    Alternative Online Grocery Retailing Models
    Operations Strategy for RelayFoods.com

    eBags: Managing Growth
    eBags History
    The Luggage Industry
    eBags Business Model
    eBags Operations Model
    The Footwear Industry
    The European Market
    Where Do We Go from Here?



    Elliot Rabinovich serves on the faculty at the W.P. Carey School of Business, Arizona State University and brings deep expertise in academic research with a focus on e-commerce and supply chain management. His award-winning research has generated over 20 articles to date in leading academic journals including California Management Review, Decision Sciences, Journal of Business Logistics, Journal of Operations Management, and the MIT-Sloan Management Review. In 2005, he designed and started an annual MBA course on e-commerce and supply chain and service operations management at the W.P. Carey School of Business. He earned a BS in Civil Engineering from the School of Engineering of Antioquia, and a Ph.D. in Logistics-Supply Chain Management from the Robert H. Smith School of Business, University of Maryland.

    Tim Laseter brings twenty years of industry experience in operations strategy and supply chain management as both an industry practitioner and consultant to leading companies. In 2002 he transitioned to academia by leaving his partnership position at Booz Allen Hamilton to complete his doctorate and join the Darden Graduate Business School at the University of Virginia. He now works as an independent consultant while serving as a visiting professor at Darden, the London Business School, IESE Business School in Barcelona, the Stern School at NYU, and Emory’s Goizueta School in Atlanta. A prolific writer for practitioners, he has authored two previous books and currently serves as a contributing editor for Strategy+Business which features his column "Operating Strategies" in every other issue.