Template-Type: ReDIF-Paper 1.0
Author-Name: Agatz, N.A.H.
Author-Name-Last: Agatz
Author-Name-First: Niels
Author-Name: Campbell, A.M.
Author-Name-Last: Campbell
Author-Name-First: Ann Melissa
Author-Name: Fleischmann, M.
Author-Name-Last: Fleischmann
Author-Name-First: Moritz
Author-Person: pfl23
Author-Name: van Nunen, J.A.E.E.
Author-Name-Last: van Nunen
Author-Name-First: Jo
Author-Name: Savelsbergh, M.W.P.
Author-Name-Last: Savelsbergh
Author-Name-First: Martin
Title: Demand Management Opportunities in E-fulfillment: What Internet Retailers Can Learn from Revenue Management
Abstract: 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.
Creation-Date: 2008-04-25
File-URL: https://repub.eur.nl/pub/12244/ERS-2008-021-LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2008-021-LIS
Classification-JEL: D4, L11, M, M11, R4
Keywords: E-fulfillment, demand management, home delivery, ketenbeheer, marketing-operations interface, revenue management
Handle: RePEc:ems:eureri:12244