Multiple order-entry points in e-business: Issues and challenges

Many formerly traditional retail organizations now include functionality for on-line order fulfillment in addition to traditional order processing at physical retail stores. The coexistence of these two types of order fulfillment creates a hybrid distribution system. One of the distinguishing features of this type of distribution system is its multiple order-entry (and consequently order-processing) points: one at the retail outlets and one at the distribution center(s). The new challenges introduced by the hybrid distribution system exist on many levels, including the co-existence of multiple requirements associated with differences in: demand pattern (and consequently, differences in material handling and storage requirements), shipping and transportation methods, inventory systems, information systems, and performance measurement. This paper describes the major issues and challenges associated with hybrid distribution systems and identifies directions for future research.