E-commerce Operations Management - (B-E-ba-m) - Q3

Participation Prerequisites

A basic understanding of statistics—probability theory, regression analysis, etc.—and operations management—process flow and lean management, inventory management under demand risk (EOQ and Newsboy model), quality management, continuous improvement, operations strategy formation and deployment—is assumed. These concepts can be studied, among others, in the textbook by Cachon, G.P./Terwiesch, C. (2025): Operations Management, Third Updated Edition, McGraw Hill.

Course Content

This course provides students with current showcases how leading e-commerce startups and retailers advance their operational performance through digitalization and the targeting of customers. 

In today’s business world, technology increasingly plays a major role in determining a company’s future competitiveness. In this course, we focus on five main topics that are critical for the success of omnichannel players: i) digital enterprise strategy formation and deployment, ii) demand shaping through loyalty programs, churn prevention, as well as the reactivation and targeting of (lapsed) customers, iii) promotional and judgmental demand forecasting, iv) managing the return chain and customer online interaction to curtail mindless shopping as well as v) outsourcing of services in e-commerce.

PART I:         DIGITAL ENTERPRISE STRATEGY FORMATION TOP-DOWN & BOTTOM-UP

Session 1:       Introduction to Operations Strategy Formation and Employee Engagement 

PART II:        CUSTOMER CENTRICITY FROM A RETAILER PERSPECTIVE: CUSTOMER REACTIVATION, CUSTOMER CHURN PREVENTION, SEGMENT-OF-ONE CUSTOMER TARGETING 

Session 2:       Mail Order Optimization at Rhenania Buchversand 

Session 3:       Case Study I: Customer Reactivation Management in the Pharmacy Market: Resource-efficient Implementation of Direct Marketing Campaigns for Long-term Profit Maximization 

Session 4:       Bespoke Direct Marketing Optimization 

Session 5:       Proactive Retention Management in Retailing: Identifying, Predicting & Preventing Partial Defection 

Session 6:       Maximizing the Potential of Targeted Marketing – A General Framework for Customized Category Promotions in Retail 

Session 7:       Bespoke Minimum Purchase Requirements for Coupon Promotions 

PART III:      DEMAND FORECASTING: CUSTOMER LOYALTY PROGRAMS VS SUBSCRIPTION SERVICES, PROMOTIONAL PRODUCTS, SEASONAL PRODUCTS AND SERVICES 

Session 8:       Case Study II: The RealPro Customer Benefits Program: Rekindling Shopper Loyalty through a Subscription Service 

Session 9:       Promotional Demand Forecasts for Seasonal Products using Machine Learning 

Session 10:     Case Study III: Canyon Bicycles – Judgmental Demand Forecasting for Direct Sales 

Session 11:     Predictably Unpredictable: How Human- and Machine-Based Forecasts Complement Each Other 

PART IV:      MANAGING RETURNS FRONT-END OR BACK-END: SALVAGING PORTFOLIOS OR INFORMATION PROVISION 

Session 12:     Case Study IV: Zalando – A digital foundation for fashion supply chain success 

Session 13:     Competitive Returns Policies with Salvaging: When Less is More 

Session 14:     How Providing Information Increases Return Rates

PART V:       BEST PRACTICE

Session 15:     Outsourcing in E-Commerce or Human and Machine (HaM) versus Human or Machine Demand Forecasting

Intended Learning Outcomes and Competencies

Cases and readings, mostly working papers under review or recently published articles in top managerial or academic journals, provide novel insights into the operations and strategies employed by leading European omnichannel retailers. 

Students will be able to discuss these approaches with numerous guest speakers from industry and academia. This is a great way to study in-depth hot topics and rigorous methods in an open and knowledge-sharing atmosphere.

Instruction Type

Professor Arnd Huchzermeier holds a Dual MSc degree in Business Administration and Computer Science & Operations Research from the Karlsruhe Institute of Technology (KIT), Germany, and a Ph.D. degree in Decision Sciences from the Wharton School of the University of Pennsylvania, USA. Presently, he acts as Chair of Production Management at WHU’s Otto Beisheim School of Management. In 1996, he co-founded the INSEAD-WHU Industrial Excellence Award which is supported by 14 Business Schools across Western Europe and Türkiye.

Professor Huchzermeier publishes frequently in top academic and managerial journals and holds an Associate Editor position of the Management Science journal (FT 50 ranked); a Senior Editor positions of the Production & Operations Management journal (FT 50-ranked); an Editorial Board position of the INFORMS Transactions on Education journal; and an Advisory Board position of the Management & Business Review journal, a new managerial journal supported by premier business schools from around the world. He regularly teaches at The Wharton School, USA, and Kobe University, Japan.

Form of Examination

Literature

Readings include published articles and working papers as well as case studies. See Moodle and the Course Syllabus for further information.