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E-Commerce Last Mile Transportation Cost Drivers - Possible Impact a Company within The Digital Market of Incontinence Care Products can have on Cost when Outsourcing Logistics Services

Gabriella Hjält ; Julia Kollberg
Göteborg : Chalmers tekniska högskola, 2016. 135 s. Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden; E2016:055, 2016.
[Examensarbete på avancerad nivå]

Problem: SCA’s incontinence care brand TENA has relatively recently introduced an echannel to, amongst other reasons, attract first time consumers. When incontinence care products are being compared over the internet, the cost of delivery is often used as a mean of competition. For TENA, the cost associated with the fulfilment process included in the home delivery is exceeding the ones of their traditional channels. With products whose cost to a large extent consists of logistics, and with volumes that calls for outsourcing, their possible impact on cost reduction lies largely in their relation with logistics service providers. Aim: The purpose of this thesis is to investigate how a company, selling incontinence care products through an online sales channel in Sweden, can affect the cost of last mile deliveries, before and during the purchasing process of logistics services. Method: The thesis has been conducted with an abductive research approach. The ground on which the study is based consists of two blocks; empirical findings and theory, integrated in order to reach the objective of this study. Data have been extracted with the help of a literature research, a survey and qualitative semi-structured interviews with academic experts, industry specific experts and company-specific professionals. Results and implication: The digital market for incontinence care products is in Sweden, with very careful calculations, expected to increase with some 500 percent the upcoming ten years. In order for a company to internally reduce cost they should aim at being more transparent and create incentives for their customers to subscribe or choose collection points. They should also aim to use collaboration to optimize their flow. Characteristics, such as having a stable, growing target group that allows a large delivery time window and have very few returns, works as a great bargain power. When looking at logistics service providers, the company should consider them who can offer new flexible solutions with short completion time, low cost and accurate deliveries. While creating specifications for logistics services the overall goal is important as well as not being too specific in order to leave space for different solutions. The company should also, as early as possible, share all available data. Important to remember is also that evaluation of LSP should be made regularly even though the channel stands for a small share of total orders and even though the channel might not have the primary purpose of being profitable on its own. The evaluations should aim at creating solutions that go along with the long term goals of the company. When the market change the channel might grow, then the purpose of the channel might change evoking needs of being more profitable.

Nyckelord: Last mile transportation, E-commerce, Logistics Service Providers, Multichannel, Crowdsourcing, Horizontal Collaboration

Publikationen registrerades 2016-06-17. Den ändrades senast 2016-06-17

CPL ID: 237890

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