The environmental impact of omnichannel distribution - A case study of the changes in distribution to consumer

Abstract

To meet customer demands of fast deliveries and a wide product assortment, many companies decide to implement an omnichannel (OC) supply chain. Through this, different channels become integrated and physical stores can be interconnected with online stores. In previous literature it was found that this kind of implementation can entail both advantages and challenges, where the reduction of emissions is one of the drivers alongside the transportation costs. To investigate the impact of implementing OC distribution, Nudie Jeans was used as a case company and London, UK as well as Sydney, AU were the focus markets. Based on data provided by the company, calculations were made where the results showed that there is a clear relationship between volumetric weight and the emissions which indicates that making larger shipments results in lower emissions per kilo. In addition to this, it was found that the final parts of the delivery form London or Sydney to the end customer, stays approximately the same as before the implementation of OC. In comparison to the literature, the results of this thesis showed that several aspects aligned with previous studies, although some differences were found which could be related to the specific case.