Demand-based on-shelf availability

Type
fundamental research project
Start Date
September 1, 2010
End Date
September 30, 2011
Status
completed
Keywords
on-shelf availability (OSA)
optimal shelf availability
supply chain managament
service-dominant (S-D) logic
Description
Enhancing the service to service exchange in retailing through accounting for the timeliness of retailers' value proposition.
Leader contributor(s)
Ehrenthal, Joachim C.F.
Funder

other

Topic(s)
further developing OSA in the context of [http://www.sdlogic.net/ Service-Dominant logic]
Method(s)
workshops
presentations
longitudinal analysis
POS-data anaylsis
desk research
Range
HSG Internal
Range (De)
HSG Intern
Eprints ID
63919

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Now showing 1 - 10 of 22
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    Käufer lieben volle Regale (Retail customers love on-shelf availability)
    (DVV Media, 2010-10-19)
    Ehrenthal, Joachim C.F.
    ;
    Stölzle, Wolfgang
    Type:newspaper article
    Journal:Deutsche Logistik-Zeitung (DVZ)
    Volume:64
    Issue:125
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/95765
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    Item type:Publication,
    A Retail Inventory Policy for Cyclical Demand
    (2011-11-16)
    Ehrenthal, Joachim C.F.
    ;
    Gruen, Thomas W.
    ;
    Hofstetter, Joerg S  
    ;
    Honhon, Dorothée
    ;
    Van Woensel, Tom
    Type:presentation
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/93222
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    Item type:Publication,
    A Service-Dominant Logic View of Retail On-Shelf Availability
    (Rohner + Spiller AG, 2012)
    Ehrenthal, Joachim C.F.
    Providing products on store shelves is a key function of retailing, but it comes at a price. Retailers spend 5% of the global $13.9 trillion sales on logistics. 45% of logistics expenses are caused by store inventory handling and holding. Improvements in store inventory management are therefore a primary objective for retail managers. Over the last decades, research and practice have devoted considerable attention to reducing inventory management costs. Retailers improved logistics efficiency and introduced new technology in the pursuit of providing constantly high levels of on-shelf availability. However, this approach may be very costly if shopper demand varies. This research therefore investigates the benefits of adjusting on-shelf availability to account for demand variation. It shows empirically when differentiated levels of on-shelf improve store inventory management costs over non-adjusted availability provision. It develops and applies Service-Dominant (S-D) logic, a structuring framework from marketing based around value co-creation in service networks, and transcends the traditional role of retail inventory from the protection against demand towards the goal of service provision and value-creation with shoppers. The S-D logic view of on-shelf availability is addressed in three complementary levels: theory, conceptual development and empirical research. Theoretically, this research reviews comprehensively and synthesizes the advances and applications of S-D logic since its introduction in 2004. It suggests redundancies in S-D logic, identifies future topic areas and guides research and practice in its application and development. Specifically, it points to the investigation of value attenuation - opposed to co-creation - and the empirical validation of phenomena uncovered by the S-D logic perspective. Conceptually, this research transcends the traditional view of the effects of retail out-of-stocks on sales losses to a S-D logic view that unveils out-of-stocks to attend value across suppliers, retailers, shoppers and their respective networks. It develops a model of value co-creation where manufacturer supply and shopper demand meet in the retailer's realm. The model identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail ecosystem. It proposes that co-creation of value through on-shelf availability takes place in the spatio-temporal integration of actor resources and suggests to improve value creation by allowing on-shelf availability to match shopper demand variation. Empirically, this research uses inventory modeling to investigate the value of adjusting on-shelf availability to account for demand variation. It transfers the S-D logic concept into a single-location, single-item periodic-review lost sales inventory model with non-stationary demand. In a first step, it analyzes numerically the performance of inventory policies taking into account varying degrees of demand variation using a cost structure comprised of costs for ordering, handling, holding, and out-of-stocks. In a second step, it uses a real life replenishment setup and actual sales data to investigate the value of accounting for demand variation in practice, putting a novel focus on demand variation within and across days. The analysis shows the value of accounting for demand variation to retailers is substantial, especially when demand varies while fix costs are low. This research provides implications for retail managers and points towards further research in S-D logic, on-shelf availability and inventory modeling. On a broader level, it suggests moving distribution thought and management towards a goal of value co-creation to address availability challenges in supply chains. The dissertation can also be accessed via the database of electronically published dissertations of the University of St.Gallen (EDIS) [http://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/4008?OpenDocument&lang=en here].
    Type:doctoral thesis
    Issue:4008
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/92389
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    Potenzial in der Filiale : Nachfrageschwankungen während des Tages einplanen
    (Deutscher Fachverlag, 2012-10-12)
    Ehrenthal, Joachim C.F.
    ;
    Stölzle, Wolfgang
    Type:newspaper article
    Journal:Lebensmittelzeitung
    Volume:64
    Issue:41
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/90869
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    Demand-based On-Shelf Availability
    (2011-08-12)
    Ehrenthal, Joachim C.F.
    Type:presentation
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/93715
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    Value Attenuation and Retail Out-of-Stocks : A Service-Dominant Logic Perspective
    (Emerald Group Publishing Limited, 2014-02-07)
    Ehrenthal, Joachim C.F.
    ;
    Gruen, Thomas W.
    ;
    Hofstetter, Joerg S  
    Purpose - Addresses the effects of retail out-of-stocks from a Service-Dominant (S-D) logic view. Design/methodology/approach - Conceptual, combining classic S-D logic research with recent research of S-D logic in supply chains, and applying this to out-of-stocks in a retail setting of fast-moving consumer goods. Findings - This article unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. It develops a model of value co-creation where manufacturer supply and shopper/user demand meet in the retailer's realm. Differentiating between shopper and user in a sequential model of value creation, it identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail service ecosystem. An additional model is developed that illustrates the novel costs of an out-of-stock as uncovered by the S-D logic perspective, allowing retailers and manufacturers to align their interests in improving on-shelf availability. Research limitations/implications - Moving distribution thought and management towards a goal of service provision, this article suggests three logistics research possibilities: retailer-manufacturer misalignment, spatio-temporal supply-demand mismatch, and shopper-user interaction. Practical implications - This article shows how the S-D perspective can bring previously misaligned incentives of supply chain actors into alignment. Previous goods-dominant research showed little common ground for manufacturers and retailers to jointly improve on-shelf availability. The S-D logic view demonstrates compelling rationale for both parties' involvement. Originality/value - Extends S-D logic literature by considering value attenuation through failures in physical distribution and logistics management, adding that non-availability causes operand resources to become operant and attenuate/redistribute value. Extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.
    Type:journal article
    Journal:International Journal of Physical Distribution & Logistics Management
    Volume:44
    Issue:1/2
    DOI:10.1108/IJPDLM-02-2013-0028
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/87302
    Scopus© Citations 28
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    L'évolution de la demande, décodée (Uncovering retail sales patterns)
    (Alimenta, 2010-09-07)
    Ehrenthal, Joachim C.F.
    ;
    Jaronicki, Katharina  
    Type:newspaper article
    Journal:Alimenta - Fachzeitschrift für die Lebensmittelwirtschaft / Publication du secteur alimentaire
    Issue:17
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/95963