1.1 Research Background
With the fast growth of broadband internet connection, shopping on-line has become a common way for those who want to pick up goods at home. With regard to the relationship between online searching and buying, research findings show that the searching online would positively affect online buying. Searching online also definitely influences the frequency of shopping trips online, which in turn, certainly influences the buying online. These findings suggest that, for some people, e-shopping could be a time-saving strategy, and leisure-oriented for others. Buyers can compare the goods via different websites, and then choose the best possible options offered at the website that they really want to buy. The shopping site will deliver goods to buyers‘ home in few days after the transaction is complete.
At the beginning, online shopping provides time-insensitive purchasing for the goods, such as 3C products, clothes, bags and so on. As it matures in recent years, the food items are also available; then these extended to the purchases for appliances, refrigerators, and even daily necessities, toilet paper. Since the on-line shopping market is more competitive than what would have been in a normal shopping environment, some suppliers may face the huge and tough losses. Therefore, constant improvement for the service quality remains to be the key factor for most sellers to survive in the business.
Recently one seller has found out that the top customer FAQ (Frequently Asked Questions) is: "When will I receive the goods?" The seller believes customers who are time-conscious would prefer the website offering 24-hour shipping for goods than others who can‘t. Therefore, the speed would also emerge as a prominent factor for sellers to compete with each other. In addition, the seller provides 24-hour shipping service, i.e. the customers can pick up ordered goods within 24 hours after the payment made. To achieve the 24-hour delivery goal, the seller has to concentrate on vendors‘ goods, comparing to the zero
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inventory practice in the past. The challenge to switch from the original zero-inventory mode is the reason why vendor goods should be in the seller‘s warehouse for temporary storage. In order to convince the vendors, the seller needs to commit vendors go into the warehouse practice at any given time, and the seller has to agree to compensate if any goods were damaged. So there will be a huge investment upfront in building the warehouses in addition to precision daily inventory.
This study will focus on the 24-hour delivery shopping. The literature for on-line shopping will be reviewed, and the key factors of not accomplishing the 24-hour deliveries will be located via experts‘ in-depth interviews. The relationship between those factors will be discussed and probed through using FCM method. This study intends to streamline the resolutions for the problems identified so as to improve the service quality to realize the 24 hour delivery eventually.
1.2 Research Motivations
This study would attempt to supplement the findings from earlier studies. With increased usage of the World Wide Web (WWW), on-line shopping has become a new trading mode and widely preferred by consumers. Now, more and more operators launch new services for speeding up the delivery of this Taiwan's consumer business model. Customers can shop online without going out at all or waiting in a long time, instead, they can pick up the goods within 24 hours. It is similar to the studies discussed above that the focus is on side of logistics service. And this differs from previous studies. However, the idea of finding out the relationships between the concepts proposed can be used to compute the "strength of relationship" for these elements.
In recent years, there has been a dramatic proliferation of researches concerning on-line shopping. Shopping on-line has become a very common way for those who want to pick-up goods in convenience stores or at home within 24 hours. More recently, interest in comparative analysis has shifted towards in reflecting current developments with timesaving
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consciousness which emphasizes picking up goods within 24 hours after the payment.
Nonetheless, there exists a mechanism to compensate delay shipment experienced at the customer end. As for the customer, they trust the sellers and believe they can pick up their orders within agreed-upon 24 hours. If customers order goods, the goods will be received within 24 hours after payment, or customers can get the cash back as compensation for the un-kept promise. Thus to find out the key components for 24-hour shipment, this could be the motivation identified in this study, and the relationships between different components will also be discussed.
Fuzzy cognitive maps are signed fuzzy digraphs. FCM is a fuzzy cognitive map which the relations between the concepts can be used to compute the "strength of relationship" for these elements. It helps demonstrate or simulate how experts deliberate upon a particular issue.
In addition, it puts causal relationships in use and provides functionalities of feedbacks.
Little literature has been published on the 24-hour delivery approach with FCM model, the study is more like an exploratory research. Hence, in order to get to know the issues which we are interested, it would be more appropriate to apply FCM because of its fewer limitations in application, and it may facilitate the removal of any potential research obstacles.
Because of the short history in development and difficulties experienced in data collection, there have been very few studies about the 24-hour delivery model. For this reason alone, it is worthwhile to explore the critical concepts (or system variables, parameters ) imbedded in the 24-hour delivery model, the strength of relationships between concepts, and the feasible enhancements to the identified negative effects within the overall dynamic environment.
1.3 Research Objectives
This study is concerned with proposing a fuzzy cognitive map (FCM) driven approach for improving the performance for 24-hour delivery. A Fuzzy cognitive map can be used to compute the strength of impact for these elements, and the research issues are included as
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follow:
Issue1: To find out the relations between the important concepts for the achievement of 24-hour delivery.
Issue2: Describe how we apply Sensitivity Model and Fuzzy Cognitive Maps in the simulation for the system relationship model.
Issue3: Understand what inputs can be used to improve the service for 24-hour delivery.
1.4 Research Scope
The advantage of zero inventory and cost is considered as the most efficient business model for online shopping. However, customers‘ demands have been brushed aside and taken for granted. Until recently, PChome has had maintained its own warehouse. When consumers order goods in the morning and PChome will start their packaging process. The routine practice would be that consumers can pick up the ordered products in the afternoon of the same day.
Since this study is focusing on the service of shopping on-line and the purpose is to find out the crucial factors that will influence 24-hour delivery from technology manager‘s viewpoints. Therefore, the research scope of this study is highlighted in Figure 1.1
Goods suppliers
Packaging process
Delivery
process Customers
EZ-Cat
Figure 1.1 Research scope
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1.5 Research Procedure
In Chapter 1, this study defines research background, motivations, and research objectives. The remaining of this research is arranged as follows: Chapter 2 describes the 24-hour delivery background and reviews related literature on 24-hour delivery, and methodology of Sensitivity Model and Fuzzy Cognitive Map. Chapter 3 shows the construction for concepts of 24-hour delivery. Chapter 4 shows how the methodology processes. In Chapter 5, the study will analyze the scenario output generated by FCM. In Chapter 6, conclusions as well as recommendations for future research will be discussed and proposed. Research procedure can be referenced and depicted in Figure 1.2.
Figure 1.2 Research procedure
Research Background and Motivations
Research Objectives and Scope Literature Review
E-commerce &
E-commerce Logistics
Sensitivity Model Fuzzy Cognitive Map
Reorganize the Research
Methodology：SM & FCM
1. Define criteria and concepts 2. Establish the SM
3. Fuzzy Set
4. Establish the FCM 5. Scenario analysis
Result Analysis
Conclusions and Suggestions
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