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• 01 Apr 2024
• In Practice

Navigating the Mood of Customers Weary of Price Hikes

Price increases might be tempering after historic surges, but companies continue to wrestle with pinched consumers. Alexander MacKay, Chiara Farronato, and Emily Williams make sense of the economic whiplash of inflation and offer insights for business leaders trying to find equilibrium.

• 17 Jan 2024

Psychological Pricing Tactics to Fight the Inflation Blues

Inflation has slowed from the epic rates of 2021 and 2022, but many consumers still feel pinched. What will it take to encourage them to spend? Thoughtful pricing strategies that empower customers as they make purchasing decisions, says research by Elie Ofek.

• 05 Dec 2023
• Cold Call Podcast

Tommy Hilfiger’s Adaptive Clothing Line: Making Fashion Inclusive

In 2017, Tommy Hilfiger launched its adaptive fashion line to provide fashion apparel that aims to make dressing easier. By 2020, it was still a relatively unknown line in the U.S. and the Tommy Hilfiger team was continuing to learn more about how to serve these new customers. Should the team make adaptive clothing available beyond the U.S., or is a global expansion premature? Assistant Professor Elizabeth Keenan discusses the opportunities and challenges that accompanied the introduction of a new product line that effectively serves an entirely new customer while simultaneously starting a movement to provide fashion for all in the case, “Tommy Hilfiger Adaptive: Fashion for All.”

• 05 Jul 2023

How Unilever Is Preparing for the Future of Work

Launched in 2016, Unilever’s Future of Work initiative aimed to accelerate the speed of change throughout the organization and prepare its workforce for a digitalized and highly automated era. But despite its success over the last three years, the program still faces significant challenges in its implementation. How should Unilever, one of the world's largest consumer goods companies, best prepare and upscale its workforce for the future? How should Unilever adapt and accelerate the speed of change throughout the organization? Is it even possible to lead a systematic, agile workforce transformation across several geographies while accounting for local context? Harvard Business School professor and faculty co-chair of the Managing the Future of Work Project William Kerr and Patrick Hull, Unilever’s vice president of global learning and future of work, discuss how rapid advances in artificial intelligence, machine learning, and automation are changing the nature of work in the case, “Unilever's Response to the Future of Work.”

• 25 Apr 2023

How SHEIN and Temu Conquered Fast Fashion—and Forged a New Business Model

The platforms SHEIN and Temu match consumer demand and factory output, bringing Chinese production to the rest of the world. The companies have remade fast fashion, but their pioneering approach has the potential to go far beyond retail, says John Deighton.

• 11 Apr 2023
• Research & Ideas

Is Amazon a Retailer, a Tech Firm, or a Media Company? How AI Can Help Investors Decide

More companies are bringing seemingly unrelated businesses together in new ways, challenging traditional stock categories. MarcAntonio Awada and Suraj Srinivasan discuss how applying machine learning to regulatory data could reveal new opportunities for investors.

• 04 Apr 2023

Two Centuries of Business Leaders Who Took a Stand on Social Issues

Executives going back to George Cadbury and J. N. Tata have been trying to improve life for their workers and communities, according to the book Deeply Responsible Business: A Global History of Values-Driven Leadership by Geoffrey Jones. He highlights three practices that deeply responsible companies share.

• 03 Mar 2023

When Showing Know-How Backfires for Women Managers

Women managers might think they need to roll up their sleeves and work alongside their teams to show their mettle. But research by Alexandra Feldberg shows how this strategy can work against them. How can employers provide more support?

• 27 Feb 2023

How One Late Employee Can Hurt Your Business: Data from 25 Million Timecards

Employees who clock in a few minutes late—or not at all—often dampen sales and productivity, says a study of 100,000 workers by Ananth Raman and Caleb Kwon. What can managers do to address chronic tardiness and absenteeism?

• 06 Dec 2022

Latest Isn’t Always Greatest: Why Product Updates Capture Consumers

Consumers can't pass up a product update—even if there's no improvement. Research by Leslie John, Michael Norton, and Ximena Garcia-Rada illustrates the powerful allure of change. Are we really that naïve?

• 29 Nov 2022

How Much More Would Holiday Shoppers Pay to Wear Something Rare?

Economic worries will make pricing strategy even more critical this holiday season. Research by Chiara Farronato reveals the value that hip consumers see in hard-to-find products. Are companies simply making too many goods?

• 21 Nov 2022

Buy Now, Pay Later: How Retail's Hot Feature Hurts Low-Income Shoppers

More consumers may opt to "buy now, pay later" this holiday season, but what happens if they can't make that last payment? Research by Marco Di Maggio and Emily Williams highlights the risks of these financing services, especially for lower-income shoppers.

• 18 Oct 2022

Chewy.com’s Make-or-Break Logistics Dilemma

In late 2013, Ryan Cohen, cofounder and then-CEO of online pet products retailer Chewy.com, was facing a decision that could determine his company’s future. Should he stay with a third-party logistics provider (3PL) for all of Chewy.com’s e-commerce fulfillment or take that function in house? Cohen was convinced that achieving scale would be essential to making the business work and he worried that the company’s current 3PL may not be able to scale with Chewy.com’s projected growth or maintain the company’s performance standards for service quality and fulfillment. But neither he nor his cofounders had any experience managing logistics, and the company’s board members were pressuring him to leave order fulfillment to the 3PL. They worried that any changes could destabilize the existing 3PL relationship and endanger the viability of the fast-growing business. What should Cohen do? Senior Lecturer Jeffrey Rayport discusses the options in his case, “Chewy.com (A).”

• 06 Sep 2022

Reinventing an Iconic Independent Bookstore

In 2020, Kwame Spearman (MBA 2011) made the career-shifting decision to leave a New York City-based consulting job to return to his hometown of Denver, Colorado, and take over an iconic independent bookstore, The Tattered Cover. Spearman saw an opportunity to reinvent the local business to build a sense of community after the pandemic. But he also had to find a way to meet the big challenges facing independent booksellers amid technological change and shifting business models. Professor Ryan Raffaelli and Spearman discuss Spearman’s vision for reinventing The Tattered Cover, as well as larger insights around how local businesses can successfully compete with online and big box retailers in the case, “Kwame Spearman at Tattered Cover: Reinventing Brick-and-Mortar Retail.”

• 26 Jul 2022

Burgers with Bugs? What Happens When Restaurants Ignore Online Reviews

Negative Yelp reviews hold more sway with consumers than restaurateurs might think. A machine learning study by Chiara Farronato reveals how online platforms amplify the customer voice, and why business owners should listen.

• 22 Mar 2022

How Etsy Found Its Purpose and Crafted a Turnaround

Etsy, the online seller of handmade goods, was founded in 2005 as an alternative to companies that sold mass-manufactured products. The company grew substantially, but remained unprofitable under the leadership of two early CEOs. Ten years later, Etsy went public and was forced into a new arena, where it was beholden to stakeholders who demanded financial success and accountability. Unable to contain costs, the company was almost bought out by private equity firms in 2017—until CEO Josh Silverman arrived with a mission to save the company financially and, in the process, save its soul. Harvard Business School professor Ranjay Gulati discusses the purpose-driven turnaround Silverman and his team led at Etsy—to make the company profitable and improve its social and environmental impact—in the case, “Etsy: Crafting a Turnaround to Save the Business and Its Soul.” Open for comment; 0 Comments.

• 05 Nov 2021

Is the Business World Finally Ready for the Wisdom of Shibusawa?

Legendary financier Eiichi Shibusawa advocated for business prosperity that would also benefit society. One hundred years after his death, his message is resonating with a new generation of leaders, say Geoffrey Jones and Rei Morimoto. Open for comment; 0 Comments.

• 19 Oct 2021

Fed Up Workers and Supply Woes: What's Next for Dollar Stores?

Willy Shih discusses how higher costs, shipping delays, and worker shortages are putting the dollar store business model to the test ahead of the critical holiday shopping season. Open for comment; 0 Comments.

• 13 Jul 2021

Strategies for Underdogs: How Alibaba’s Taobao Beat eBay in China

In 2007, Alibaba’s Taobao became China’s leading consumer e-commerce marketplace, displacing the once dominant eBay. How did underdog Taobao do it? And will it be able to find a way to monetize its marketplace and ensure future success? Professor Felix Oberholzer-Gee discusses his case, “Alibaba’s Taobao,” and related strategy lessons from his new book, Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance. Open for comment; 0 Comments.

• 01 Jul 2021
• Office Hours

Readers Ask: Which Companies Are Transforming Work?

Joseph Fuller answers readers' questions about automation, virtual internships, and the future of work on Working Knowledge’s “Office Hours” series. Open for comment; 0 Comments.

Retail supply chain management: a review of theories and practices

• Original Article
• Published: 18 July 2019
• Volume 1 , pages 45–64, ( 2019 )

Cite this article

• Deng Ge 1 ,
• Zuo-Jun (Max) Shen 1 , 2 ,
• Di Wu   ORCID: orcid.org/0000-0002-2895-3407 1 ,
• Rong Yuan 1 &
• Chao Zhang 1  

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25 Citations

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Retail business has been rapidly evolving in the past decades with the boom of internet, mobile technologies and most importantly e-commerce. Supply chain management, as a core part of retail business, has also gone through significant changes with new business scenarios and more advanced technologies in both algorithm design and computation power. In this review, we focus on several core components of supply chain management, i.e. vendor management, demand forecasting, inventory management and order fulfillment. We will discuss the key innovations from both academia and industry and highlight the current trend and future challenges.

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An Overview of Decisions, Performance and Analytics in Supply Chain Management

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Supply Chain Management: An Overview

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Ge, D., Pan, Y., Shen, ZJ.(. et al. Retail supply chain management: a review of theories and practices. J. of Data, Inf. and Manag. 1 , 45–64 (2019). https://doi.org/10.1007/s42488-019-00004-z

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DOI : https://doi.org/10.1007/s42488-019-00004-z

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The Effect of E-commerce Expansion on Local Retail

E -commerce has dramatically altered retail in the last two decades, with online sales growing from 0.63 percent of total retail sales in 1999 to 13.3 percent in 2021. In Creative Destruction? Impact of E-commerce on the Retail Sector (NBER Working Paper 30077), Sudheer Chava , Alexander Oettl , Manpreet Singh , and Linghang Zeng study how the rise of online selling has affected brick-and-mortar retail establishments and their employees.

The researchers measure the presence of e-commerce in an area using the staggered rollout of a major e-commerce retailer’s fulfillment centers across the United States. This firm had only three such centers in 2000, but more than 90 by the end of 2016. Establishing a center reduces shipment delivery times in surrounding areas, which may encourage local consumers to shift towards e-commerce and away from traditional brick-and-mortar retailers. The researchers study the trends in retail outcomes before and after a fulfillment center is established in proximate counties, and compare them with the trends in a control group of counties near where centers would be built at a later date.

Establishment of an e-commerce fulfillment center reduces retail employment growth in the host county by an average of almost 1,000 jobs per quarter.

The researchers first use a detailed employer-employee payroll dataset covering 2.6 million retail workers to explore how e-commerce growth affects traditional retail workers. The establishment of a fulfillment center is associated with a drop of 2.5 percent on average in the income of hourly retail workers in the same county, or about $825 annually. The income drop is similar for retail workers in counties within 100 miles of the center, but is negligible beyond that distance. Hourly workers’ income losses arise primarily from a reduction in hours worked.

A new fulfillment center is not associated with lower income among salaried retail workers, and the impacts of e-commerce on hourly workers’ income vary substantially with worker characteristics. Income falls the most among the youngest and oldest workers, with income falling by 3.6 percent among workers over age 64. Workers with longer tenure at retail firms see smaller losses in income, and income losses are larger among part-time workers. Income losses are largest among workers in general-merchandise and home-improvement stores, two retail subsectors where customers may place less value on their in-store experience.

The researchers next use National Establishment Time Series data to examine the impact of e-commerce fulfillment centers on traditional retail stores. Sales in the average brick-and-mortar retail store fall by about 4 percent after a local fulfillment center opens. Stores react to these drops by reducing hours per worker and by cutting employee headcount by 2.1 percent on average, or about 36 workers per 100 stores. The opening of a fulfillment center coincides with a 3 percentage point increase in the annual likelihood that brick-and-mortar stores close. The largest impacts are found among smaller and newer stores. Likewise, new stores’ rate of entry falls by 8.1 percentage points within 100 miles of a new center.

Finally, the researchers use data from the Quarterly Census of Employment and Wages to examine how e-commerce expansion affects retail employment and wage growth at the county level. Establishment of a fulfillment center is associated with reduced employment growth in retail of 2.9 percent within the same county, a loss of about 938 jobs per county per quarter, with smaller losses within a 100-mile radius. These retail losses are partially offset by increased local employment in transportation and warehousing, which gain about 256 jobs, and in restaurants, which gain about 143 jobs. Opening a new fulfillment center also coincides with increased wage growth in warehousing.

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