Demand Management Opportunities in E-fulfillment: What Internet Retailers Can Learn from Revenue Management
2008-04-25
Research Paper
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In this paper, we explain how Internet retailers can learn from proven revenue management concepts and use them to reduce costs and enhance service. We focus on attended deliveries as these provide the greatest opportunities and challenges. The key driver is service differentiation. Revenue management has shown that companies can do much better than a one-size-fits-all first-come-first-serve strategy when selling scarce capacity to a heterogeneous market. Internet retailers have strong levers at their disposal for actively steering demand, notably the offered delivery time windows and their associated prices. Unlike traditional revenue management, these demand management decisions affect both revenues and costs. This calls for a closer coordination of marketing and operations than current common practice.
- ketenbeheer
- revenue management
- home delivery
- E-fulfillment
- demand management
- marketing-operations interface
- M11 : Production Management
- L11 : Production, Pricing, and Market Structure; Size Distribution of Firms
- D4 : Market Structure and Pricing
- R4 : Transportation Systems
- M : Business Administration and Business Economics; Marketing; Accounting
- delivery
- customer
- management
- demand
- internet
- order
- revenue
- revenue management
- internet retailers
- demand management
- pricing
- window
- retailer
- capacity
- internet retailing
- service
- price
- slotting
- retailing
- example
