Sorting out the sorting in omnichannel retailing

Abstract

The increasing complexity of today's omnichannels has led to challenges with logistics efficiency and customer utility. In this paper, we show how retailers address these challenges by sorting goods at multiple points across the logistics network and inside each material-handling node. As contemporary research on the omnichannel sorting phenomenon is limited and fragmented, we conduct an abductive multiple case study to elaborate omnichannel logistics and transvection theory. It explains why retailers, depending on their omnichannel context, prepone some sorting activities upstream and postpone others to handle trade-offs between customer utility and logistics efficiency. An artifact, including structured terminology, six sorting aspects, and an iconographic platform, is constructed to support the analysis of the extent, variety, and complexity of sorting at both the strategic network level and the operational material-handling node level. We conclude by submitting 10 theoretical and actionable design propositions that support decision making in (re)designing omnichannel logistics networks and offer avenues for future research.