Buy-online-and-deliver-from-store strategy for a dual-channel supply chain considering retailer's location advantage

This paper investigates a Buy-Online-and-Deliver-from-Store (BODS) strategy where a manufacturer sells products through both online and offline channels and employs the offline retailer to deliver online orders from the retailer's warehouse. By comparing Strategy BODS with a benchmark scenario where the manufacturer runs the online channel and the retailer manages the offline channel respectively and independently, we generally find that if the competition between two channels is stronger, the dual-channel supply chain is more likely to implement Strategy BODS, and vice versa. More importantly, we pinpoint that a centralized supply chain has less motivation to implement Strategy BODS than a decentralized one.