Enhancing online-to-offline delivery efficiency facilitated by Industry 4.0: a personnel configuration perspective

Abstract

PurposeThe overuse and scarcity of resources emphasize the importance of the circular economy. The technology facilitated by Industry 4.0 stimulates the implementation of the circular economy that aims to reduce resource use and enhance operational efficiency. This study focuses on enhancing delivery efficiency in an online-to-offline (O2O) context from an Industry 4.0 technology-facilitated personal configuration perspective, that is, comparing in-house and crowdsourced delivery efficiency in China's O2O on-demand food delivery context.Design/methodology/approachThe authors collect 128,152 orders from 38 restaurants of an online restaurant chain in China. The authors adopt multiple regression analysis to examine the delivery efficiency gap between in-house and crowdsourced deliverymen and the determinants of this efficiency gap.FindingsThe findings of this study reveal that crowdsourced deliverymen exhibit higher delivery efficiency, in terms of a shorter delivery time, than in-house deliverymen. In addition, the authors find that platforms providing monetary incentives or implementing late delivery penalties enlarge this efficiency gap. Furthermore, the authors show that external factors, such as working on weekends and bad weather conditions, contribute to the narrowing of this performance efficiency.Practical implicationsThe study's findings suggest that platforms should use advanced technologies facilitated by Industry 4.0 to optimize their personnel configuration to enhance their delivery efficiency and reduce carbon emissions. The effective approaches include using financial incentives and improving working schedules.Originality/valueThe authors' findings contribute to the online fulfillment literature by focusing on delivery efficiency in the O2O context from the Industry 4.0 technology-facilitated personnel configuration perspective. The authors examine how internal and external factors moderate the performance efficiency between these two types of deliverymen.