Integrating vehicle tracking and routing systems in retail distribution management
Loay Salhieh, Mohammad Shehadeh, Ismail Abushaikha, Neil Towers
Abstract
Purpose The purpose of this paper is to assess the benefits of integrating IT tracking and routing systems into last-mile distribution operations. The paper also demonstrates the role of field experiments as a valid approach for improving the rigour of logistics research. Design/methodology/approach The study employs a field experiment approach. Data were collected before and after the experimental treatment from 16 participating vehicles, which were used as inputs and outputs to calculate vehicles' efficiencies using data envelopment analysis. Findings Through employing manipulation and random assignment to investigate causality in naturally occurring contexts, the study results show statistical evidence for the role of vehicle tracking and routing systems in enhancing fleet efficiency. Furthermore, results show that field experiment is an appropriate method for capital budgeting of deploying IT systems in the distribution function. Practical implications Distribution managers can use a field experiment setup to assess the potential impact of installing IT solutions prior to large-scale implementation or prior to purchasing. Originality/value The study fills a gap in the literature through the application of a field experiment approach to establish causality relationships in distribution and logistics research. This study should encourage new research on the role of field experimentation in evaluating the benefits gained from, and the capital budgeting of, the modern disruptive technologies in supply chains.