The Impact of E-Tailing on Inventory Management
Abstract: Background In traditional retailing, where the challenge lies in providing goods in a store with limited space while minimizing tied up capital and obsolescence, good inventory management is often an important competitive advantage. However, the emergence of the online channel changes some of the challenges, and the associated requirements on inventory management. These dierences are studied in this thesis project. Purpose The purpose of the thesis project is to study how e-tailing as a market channel impacts inventory management in a company. Methodology In order to fulll the purpose, a multiple case study was used. In each case study, interviews were conducted and annual reports were studied. The general approach was to examine the eects of e-tailing as a market channel and how they impact inventory management. Conclusions For pure e-tailers, centralizing inventory reduces the inventory management complexity signicantly. This enables them to implement various activities that attract customers, but increase the complexity and risks. Mature e-tailers seem to have well-developed policies to mitigate risks whereas etailers experiencing rapid growth seem less concerned about how their activities aect the complexity of inventory management. Furthermore, multi-channel retailers face a number of decisions that potentially can create synergy eects in their inventory management.
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