How Are Logistics Service Providers Adapting to Omnichannel retail?

Abstract

An increasing number of retailers are moving towards an omnichannel model, by integrating online channels with a physical (or 'offline') store network. Logistics service providers, who used to be largely invisible to consumers, are becoming the primary point of contact in this omnichannel environment. To respond to this evolution, the logistics industry in general and certainly urban logistics players are introducing new developments and innovations. The goal of this research is to identify if and how traditional logistics service providers are adjusting to e-developments in retail. Our results show that their adjustments can be categorised into four strategies: business partnership, customer service, acquisition and expansion. Drivers behind these adjustments are the need to customise, specialise and extend their offer, to respond to retailers' and consumers' demand and to address sustainability matters.