Assessing the impact of drop-shipping fulfilment operations on the upstream supply chain

Simone T. Peinkofer, Terry L. Esper, Ronn J. Smith and Brent D. Williams

International Journal of Production Research, 2019, vol. 57, issue 11, 3598-3621

Abstract: The use of drop-shipping strategies, the practice where end-consumer orders are fulfilled directly from upstream suppliers upon a retailer’s request, has grown in popularity. Due in large part to the growth of online retailing and the increased focus on integrated omni-channel fulfilment, retailers continue to express the strategic urgency of drop-shipping operations. In a broader sense, the concept of drop-shipping represents a new and emerging aspect of the supply chain triad phenomenon, where a buyer contracts with a supplier to deliver services directly to the buyer’s customer. In order to more fully understand the operational nuances and upstream impacts of triadic service supply chain relationships, we adopt a qualitative research methodology to investigate suppliers in the service triad, a perspective that has been, to-date, under-researched. By exploring these issues in the context of the drop-shipping service triad, we more specifically shed light on the processes and operational challenges that suppliers face when assuming the bridge position in drop-shipping service triads. Therefore, this research extends the current drop-shipping literature by shifting the research focus away from retailers to suppliers; and hence, shifting the focus from strategic use of drop-shipping towards a more tactical/operational perspective by exploring those who carry out drop-shipping operations.

Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/00207543.2018.1543973

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