Chapter11 Order Fulfillment Along The Supply Chain

Order Fulfillment Along the Supply Chain and Other Support Services
Learning Objectives
1.
2. 3. 4. 5. 6. 7. 8.
Describe the role of support services in electronic commerce (EC). Define EC order fulfillment and describe the EC order fulfillment process. Describe the major problems of EC order fulfillment. Describe various solutions to EC order fulfillment problems. Describe RFID supply chain applications. Describe collaborative planning and the CPFR model. Describe other EC support services. Discuss the drivers of outsourcing support services.
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 11-1
Order Fulfillment and Logistics: An Overview

ACQUIRING GOODS AND SERVICES
order fulfillment
All the activities needed to provide customers with their ordered goods and services, including related customer services back-office operations The activities that support fulfillment of orders, such as packing, delivery, accounting, and logistics front-office operations The business processes, such as sales and advertising, which are visible to customers Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall 11-2
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
11-3

logistics
The operations involved in the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption
e-logistics
The logistics of EC systems, typically involving small
parcels sent to many customers homes (in B2C)
11-4
11-5
11-6

THE EC ORDER FULFILLMENT PROCESS Activity 1: Making sure the customer will pay Activity 2: Checking for in-stock availability Activity 3: Arranging shipments Activity 4: Insurance Activity 5: Replenishment Activity 6: In-house production Activity 7: Use contractors Activity 8: Contacts with customers Activity 9: Returns

reverse logistics
The movement of returns from customers to vendors

The Administrative Activities of Order Taking and
Fulfillment
Order Fulfillment and the Supply Chain
11-8
Problems in Order Fulfillment Along Supply Chains

TYPICAL SUPPLY CHAIN PROBLEMS WHY SUPPLY CHAIN PROBLEMS EXIST third-party logistics suppliers (3PL) External, rather than in-house, providers of logistics services Inefficient Financial Supply Chains Can Grind Businesses to a Halt The Need for Information Sharing Along the Supply Chain
11-9
Solutions to Order Fulfillment Problems Along Supply Chains

IMPROVEMENTS IN THE ORDER-TAKING
ACTIVITY
Electronic Payments in E-Commerce
warehouse management system (WMS)
A software system that helps in managing warehouses

Other Warehousing and Inventory Management
Improvements Automated Warehouses Using Wireless Technologies

11-11

SPEEDING DELIVERIES Same-Day, Even Same-Hour, Delivery Supermarket Deliveries PARTNERING EFFORTS AND OUTSOURCING
LOGISTICS
Comprehensive Logistics Services Outsourcing Logistics
11-12

INTEGRATED GLOBAL LOGISTICS SYSTEMS
ORDER FULFILLMENT IN MAKE-TO-ORDER
AND MASS CUSTOMIZATION

Fulfilling Orders
11-13

HANDLING RETURNS (REVERSE LOGISTICS) Return the item to the place of purchase Separate the logistics of returns from the logistics of delivery Completely outsource returns Allow the customer to physically drop the returned item at a collection station Auction the returned items
11-14

ORDER FULFILLMENT IN B2B Using BPM to Improve Order Fulfillment Using E-Marketplaces and Exchanges to Ease Order Fulfillment Problems in B2B Order Fulfillment in Services
11-15

OTHER SOLUTIONS TO SUPPLY CHAIN
PROBLEMS
visibility
The knowledge about where materials and parts are at any given time, which helps in solving problems such as delay, combining shipments, and more Order fulfillment Managing risk Inventories can be minimized Self-service Collaborative commerce

INNOVATIVE E-FULFILLMENT STRATEGIES merge-in-transit Logistics model in which components for a product may come from two (or more) different physical locations and are shipped directly to the customers location rolling warehouse Logistics method in which products on the delivery truck are not preassigned to a destination, but the decision about the quantity to unload at each destination is made at the time of unloading

Example: A World-Class Supply Chain and Order
Fulfillment System Works at Dell Integration and Enterprise Resource Planning The Supply Chains of Tomorrow
11-18
RFID and CPFR as Key Enablers in Supply Chain Management

radio frequency identification (RFID)
Tags that can be attached to or embedded in objects, animals, or humans and use radio waves to communicate with a reader for the purpose of uniquely identifying the object or transmitting data and/or storing information about the object
11-19
11-20

RFID APPLICATIONS IN THE SUPPLY CHAIN
AROUND THE GLOBE

RFID at Metro AG-Germany RFID at Starbucks RFID at Deutsche Post (Germany) RFID in the Federal Government (U.S. Department
of Defense)
11-21

RFID at Atlantic Beef Products (Ontario, Canada) RFID at Yodobashi Camera Handles Inventory of
About 1 Million Items (Japan) RFID in Pharmaceuticals Jeweler Gains Efficiency and Improves Customer Service with RFID (India) Other Uses
11-22
11-23

collaborative planning, forecasting, and
replenishment (CPFR) Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain
11-24
11-25
Other E-Commerce Support Services

CONSULTING SERVICES Online Consulting Directory Services Newsletters Search Engines and News Aggregators
11-26

MORE EC SUPPORT SERVICES Trust Services Trademark and Domain Names Digital Photos Global Business Communities Access to Commercial Databases Knowledge Management Client Matching E-Business Rating Sites Security and Encryption Sites Web Research Services Coupon-Generating Sites

OUTSOURCING EC SUPPORT SERVICES Why Outsource EC Services? IT Outsourcing and Application Service Providers
application service provider (ASP) An agent or vendor who assembles the functions needed by enterprises and packages them with outsourced development, operation, maintenance, and other services
11-28
11-29
Managerial Issues
1. 2.
3.
4. 5. 6. 7.
If you are an EC vendor, what is the bottleneck in the order fulfillment process? For which items should we keep our own inventory? What is the alliance strategy in order fulfillment? How should we manage returns? What logistics information should we provide to customers? Should we use RFID for the order fulfillment? Can we use CPFR in SMEs?
11-30
Summary
1.
2. 3.
4.
5. 6. 7. 8.
The role of support services in EC The order fulfillment process Problems in order fulfillment Solutions to order fulfillment problems RFID tags Collaborative planning and CPFR Other support services Outsourcing EC services
11-31
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

11-32

Chapter11 Order Fulfillment Along The Supply Chain

Uploaded by

Copyright:

Available Formats

Chapter11 Order Fulfillment Along The Supply Chain

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter11 Order Fulfillment Along The Supply Chain

Uploaded by

Copyright:

Available Formats

Order Fulfillment Along the Supply Chain and Other Support Services

Order Fulfillment and Logistics: An Overview

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Order Fulfillment and Logistics: An Overview

The logistics of EC systems, typically involving small

parcels sent to many customers homes (in B2C)

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Order Fulfillment and Logistics: An Overview

Order Fulfillment and Logistics: An Overview

The movement of returns from customers to vendors

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Problems in Order Fulfillment Along Supply Chains

Solutions to Order Fulfillment Problems Along Supply Chains

warehouse management system (WMS)

A software system that helps in managing warehouses

Improvements Automated Warehouses Using Wireless Technologies

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Solutions to Order Fulfillment Problems Along Supply Chains

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Solutions to Order Fulfillment Problems Along Supply Chains

ORDER FULFILLMENT IN MAKE-TO-ORDER

AND MASS CUSTOMIZATION

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Solutions to Order Fulfillment Problems Along Supply Chains

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Solutions to Order Fulfillment Problems Along Supply Chains

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Solutions to Order Fulfillment Problems Along Supply Chains

Solutions to Order Fulfillment Problems Along Supply Chains

Solutions to Order Fulfillment Problems Along Supply Chains

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

RFID and CPFR as Key Enablers in Supply Chain Management

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

RFID and CPFR as Key Enablers in Supply Chain Management

AROUND THE GLOBE

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

RFID and CPFR as Key Enablers in Supply Chain Management

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

RFID and CPFR as Key Enablers in Supply Chain Management

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Other E-Commerce Support Services

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Other E-Commerce Support Services

Other E-Commerce Support Services

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

You might also like