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Open AccessArticle

Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics

by 1,2,3,* and 2,4
1
Fraunhofer Institute for Material Flow and Logistics IML, J.-v.-Fraunhofer-Str. 2-4, 44227 Dortmund, Germany
2
Institute for Logistics and Service Management, FOM University of Applied Sciences Essen, Leimkugelstr. 6, 45141 Essen, Germany
3
Department of Business Administration, Georg-August-University of Göttingen, Platz der Göttinger Sieben 3, 37073 Göttingen, Germany
4
Faculty of Business and Law, UCAM Universidad Católica San Antonio de Murcia, Av. de los Jerónimos, 135, 30107 Guadalupe, Spain
*
Author to whom correspondence should be addressed.
J. Theor. Appl. Electron. Commer. Res. 2021, 16(4), 846-858; https://doi.org/10.3390/jtaer16040048
Received: 28 December 2020 / Revised: 1 February 2021 / Accepted: 8 February 2021 / Published: 16 February 2021
Order picking is a crucial but labor- and cost-intensive activity in the retail logistics and e-commerce domain. Comprehensive changes are implemented in this field due to new technologies like AI and automation. Nevertheless, human worker’s activities will be required for quite some time in the future. This fosters the necessity of evaluating manual picker-to-part operations. We apply the non-parametric Data Envelopment Analysis (DEA) to evaluate the efficiency of n = 23 order pickers processing 6109 batches with 865,410 stock keeping units (SKUs). We use distance per location, picks per location, as well as volume per SKU as inputs and picks per hour as output. As the convexity axiom of standard DEA models cannot be fully satisfied when using ratio measures with different denominators, we apply the Free Disposal Hull (FDH) approach that does not assume convexity. Validating the efficiency scores with the company’s efficiency assessment, operationalized by premium payments shows a 93% goodness=of-fit for the proposed model. The formulated non-parametric approach and its empirical application are promising ways forward in implementing empirical efficiency measurements for order picking operations within e-commerce operations. View Full-Text
Keywords: data envelopment analysis; FDH; retail logistics; order picking; e-commerce data envelopment analysis; FDH; retail logistics; order picking; e-commerce
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MDPI and ACS Style

Klumpp, M.; Loske, D. Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics. J. Theor. Appl. Electron. Commer. Res. 2021, 16, 846-858. https://doi.org/10.3390/jtaer16040048

AMA Style

Klumpp M, Loske D. Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics. Journal of Theoretical and Applied Electronic Commerce Research. 2021; 16(4):846-858. https://doi.org/10.3390/jtaer16040048

Chicago/Turabian Style

Klumpp, Matthias; Loske, Dominic. 2021. "Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics" J. Theor. Appl. Electron. Commer. Res. 16, no. 4: 846-858. https://doi.org/10.3390/jtaer16040048

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