Abstract
1- Introduction
2- Literature review
3- The model
4- Comparative analysis
5- Conclusions and future research
References
Abstract
This paper is among the first that proposes a synchronization measurement model for the distribution centre operation synchronization (DCOS) problem, which aims to ensure the E-commerce order’s punctuality and synchronization at the same time. The main motivation of DCOS is that the intensified competition in E-commerce market makes efficient E-commerce logistics service extremely important, which means saving logistics cost and ensuring customer service at the same time. The synchronized operation may be a possible solution to ensure efficient order transhipment in the distribution center and to save cost. We thus introduce a measurement approach that is able to address the distribution center operation synchronization (DCOS) problem such as the trade-off relationship between synchronization and punctuality. In order to get persuasive conclusions, we adopt data from a real practice case and apply CPLEX to get the optimal solution. Our computational results show that considering the asynchronous cost in the total cost objective function will greatly improve the operation synchronization in the distribution center, by saving the storage space, the equipment, and the labour resources. And if the storage cost is in a reasonable range, the synchronized operation can be realized while the punctuality is also optimized. It is found in our case that the most efficient way to improve distribution center operation is expanding inbound operation capacity.
Introduction
The fierce competition in the E-commerce business has triggered a strict service-oriented market. As a result, the E-commerce logistics service provider has to face the challenge of providing reliable and customized delivery service to meet diverse requirements from the huge E-commerce customer base while keeping operation costs low. And the logistics service for e-commerce order fulfilling becomes a bottleneck in the industry because of followed reasons: The logistics providers have to deal with enormous order fulfillment tasks at one time as millions of simultaneous order buttons are clicked online; the logistics providers need high flexibility of processing capacities to meet the explosive order demands which occur during festival and special selling days; the logistics providers are faced a complex order fulfilling scenario, as the ecommerce suppliers and customers are geographically dispersed and the e-commerce orders are always small but with high varieties. Successful E-commerce businesses rely heavily on efficient logistics services because of the enormous number of small-batch orders relating to geographically dispersed customers and suppliers who have high expectations regarding service [27]. And it is hard for logistics providers to expand their capacity at a short time to adapt the quick growth order processing requirements. So, how to use existing resources more efficiently is a more feasible solution. In this paper, we provide synchronize as a new solution to make more effective operation and fluent order transshipment in distribution center. The distribution center is one of the key transhipment nodes within the logistics service network [17,4]. As shown in Fig. 1, bulky packages are transported from separate suppliers to the distribution center [61]. Here the packages are broken down into smaller units at a receiving area. These are then processed in a sorting area where products are picked according to the order information. According to their destinations, the unit products are now recombined in a consolidation area and loaded onto a specified outbound truck in a shipping area for last mile delivery. Most research points out that synchronization is the critical factor in finding an optimal solution for distribution center operations [60].