{"title":"Direct Mail or Bonded Warehouse? Logistics Mode Selection in Cross-Border E-Commerce under Exchange Rate Risk","authors":"Xiaoyi Li, Hui Yu, Caihong Sun","doi":"10.3390/jtaer19030112","DOIUrl":null,"url":null,"abstract":"The rapid development of cross-border e-commerce (CBEC) has enabled more suppliers to expand into overseas markets, meeting increasingly diverse consumer demands. Selecting an effective logistics mode is a crucial issue for suppliers, yet uncertainty in demand and exchange rate fluctuations make this problem challenging. This paper considers a supply chain consisting of a supplier and a CBEC platform. Using a distributionally robust optimization approach, we provide optimal overseas warehousing strategies and logistics mode selection for suppliers, given partial distribution information of market demand and exchange rate, such as means, variances, and covariances. It is found that when demand and exchange rate fluctuations are small, the supplier chooses the bonded warehouse logistics mode to reduce costs. Conversely, when demand and exchange rate fluctuations increase, the supplier opts for the direct mail mode to respond flexibly to market risk. The correlation between exchange rate and demand also affects the choice of logistics mode. Specifically, with low correlation, the preference is for the bonded warehouse mode, whereas high correlation leads suppliers to choose the direct mail mode. In addition, the impact of demand and exchange rate fluctuations on suppliers’ overseas warehousing volumes depends on the product’s profit margin. These findings provide guidance for the selection of CBEC logistics under exchange rate risk.","PeriodicalId":46198,"journal":{"name":"Journal of Theoretical and Applied Electronic Commerce Research","volume":null,"pages":null},"PeriodicalIF":5.1000,"publicationDate":"2024-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Theoretical and Applied Electronic Commerce Research","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.3390/jtaer19030112","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
The rapid development of cross-border e-commerce (CBEC) has enabled more suppliers to expand into overseas markets, meeting increasingly diverse consumer demands. Selecting an effective logistics mode is a crucial issue for suppliers, yet uncertainty in demand and exchange rate fluctuations make this problem challenging. This paper considers a supply chain consisting of a supplier and a CBEC platform. Using a distributionally robust optimization approach, we provide optimal overseas warehousing strategies and logistics mode selection for suppliers, given partial distribution information of market demand and exchange rate, such as means, variances, and covariances. It is found that when demand and exchange rate fluctuations are small, the supplier chooses the bonded warehouse logistics mode to reduce costs. Conversely, when demand and exchange rate fluctuations increase, the supplier opts for the direct mail mode to respond flexibly to market risk. The correlation between exchange rate and demand also affects the choice of logistics mode. Specifically, with low correlation, the preference is for the bonded warehouse mode, whereas high correlation leads suppliers to choose the direct mail mode. In addition, the impact of demand and exchange rate fluctuations on suppliers’ overseas warehousing volumes depends on the product’s profit margin. These findings provide guidance for the selection of CBEC logistics under exchange rate risk.
期刊介绍:
The Journal of Theoretical and Applied Electronic Commerce Research (JTAER) has been created to allow researchers, academicians and other professionals an agile and flexible channel of communication in which to share and debate new ideas and emerging technologies concerned with this rapidly evolving field. Business practices, social, cultural and legal concerns, personal privacy and security, communications technologies, mobile connectivity are among the important elements of electronic commerce and are becoming ever more relevant in everyday life. JTAER will assist in extending and improving the use of electronic commerce for the benefit of our society.