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The Role of Technology in Ensuring E-fulfilment Success:
A South African Case Study
Mr Kyle Pirie [16712439]
ABSTRACT
E-commerce has changed the global marketplace significantly. Moreover, it requires the
implementation and use of technology in order to become operationally viable. Conventional
supply chain management practices are not always directly translatable to the practice of e-
commerce. Additionally, Tarn, Razi, Wen and Perez (2003) state that the area of supply chain
management that is most influenced by e-commerce are the processes of fulfilment. E-
commerce fulfilment or e-fulfilment necessitates the use of technology in order to achieve the
fundamental goal of any business-to-consumer (B2C), namely, customer satisfaction. The
intent of the study is to examine and understand what technologies are required to ensure the
operational success of e-fulfilment in the areas of order management, warehousing and order
delivery. The study makes use of non-empirical secondary research to provide context into
what constitutes successful e-fulfilment. Furthermore, semi-structured interviews with
Superbalist and Parcelninja, have been used in order to substantiate successful e-fulfilment in
a South African context. In accordance to the study, the use of technology to provide
integration and operational synchronisation between supply chain members is pivotal to the
implementing e-fulfilment in a prosperous manner for e-businesses. The study has proven that
without the use of technology to provide integration and outsourcing to provide strategic
leverage the concept of e-fulfilment, and thus, e-commerce is inconceivable.
1. INTRODUCTION
With the emergence of the internet in the 90’s the ability of performing commercial transactions
was made possible over the World Wide Web. E-commerce was born and so too was the
ability to apply consumer-direct business models. According to Abratt and Da Silva (2008), the
internet has influenced the dynamics of commerce by lowering barriers of entry into markets
by minimising the capital investment associated with the enablement of a conventional supply
chain. It therefore allows retailers to cost effectively penetrate markets by using the core value

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proposition of e-commerce. In other words, to provide “affordable intimacy” by employing
technology to render a highly personalised shopping experience in a cost effective manner.
Customers of today expect immediate gratification. Accomplishing this customer expectation
to successfully result in a satisfied customer falls on the operational capability of the supply
chain, more specifically the practices employed by the fulfilment process (Tarn, Razi, Wen &
Perez, 2003). It is the function of fulfilment which places the product where it needs to be,
when it needs to be there and in the form which is desired by the customer.
Fulfilment involves all the actions that take place from the point of a customer’s purchase intent,
until the point at which the customer is satisfied with the quality and functionality of the product
(Pyke, Johnson & Desmond, 2001). Conventional fulfilment cannot support the operational
requirements of an e-commerce supply chain. The supply chain needs to be made more
automated, flexible, transparent and technologically integrated to effectively provide a prompt
and exemplary service to customers (Tarn et al., 2003).
It is the purpose of this study to determine what the operational requirements are of fulfilment
that supports the success of e-tailer supply chains. The study will focus on the e-fulfilment
implications of business to consumer (B2C) online retailers exclusively. This will be done at
the hand of a case study whereby the application of technology to facilitate e-fulfilment
processes will be emphasised.
2. LITERATURE REVIEW
The introduction of e-commerce into the global market place has seen the emergence and
proliferation of e-tailers (Ricker & Kalakota, 1999). An e-tailer can be defined as a retailer that
provides products and services exclusively through online platforms (Collier & Bienstock,
2006). This signifies the distinct advantage of avoiding the capital investment of establishing
retail stores and substantial warehousing costs, in some instances (Kotabe, Mol & Murray,
2008). Alternatively, e-commerce is an attractive market penetration tool for small retailers, as
they avoid the entrance barrier of large initial inventory investments (Simichi-levi, Wu & Shen,
2004).
E-commerce has had a major influence in the nature of supply chain management, more
specifically in the structure, the transportation and the logistical efforts implemented within the
supply chain (Bayles, 2001). It is ultimately the supply chain management processes that
influence the nature of customer service. As Lambert, Stock and Cooper (2000) state
businesses “no longer compete as a solely autonomous entity, but rather in conjunction with
supply chains”. Therefore, competitive advantage can be attributed to the implementation and
control of a successful supply chain.
Mentzer, DeWitt, Keebler, Min, Nix, Smith and Zacharia (2001) stipulates that supply chain
management becomes a pivotal mechanism in the success of e-commerce, seeing that it

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provides an online purchasing platform that results in a highly fragmented market where
product and service complexity is prevalent. The nature of supply chain management is
augmented by the influence of e-commerce, e-fulfilment and internet enabled business
processes. However, the use of internet can be harnessed to enhance supply chain
relationships and ultimately successfully execute the supply chain strategy (Mentzer et al.,
2001).
Traditional commerce and e-commerce can be distinguished as different channels with
distinctly different prerequisites of success. The function of a channel is to produce the desired
assortment of outputs in the perspective of the customer at the lowest cost achievable in the
perspective of the organisation (Lambert et al., 1998). Furthermore, Ricker and Kalakota
(1999) state that the market pressures of increasing competition, diminishing operating
margins and empowered consumers place a significant emphasis on the capability of a supply
chains fulfilment strategy. It can be argued that it is ultimately fulfilment which determines the
longevity of a conventional or E-commerce supply chain.
2.1 The logistical differences between traditional commerce and e-commerce
Bayles (2001) argues that e-commerce has altered the way in which products and services
are sold as well as the way in which they are distributed. The characteristics and differences
between traditional commerce supply chain management and e-commerce supply chain
management can be summarised and compared as follows.
SUPPLY CHAIN
CHARACTERISTIC
TRADITIONAL
COMMERCE
E-COMMERCE
Shipment type Bulk Parcel
Customer Strategic Unknown
Demand Style Push Pull
Inventory Flow Uni-Directional Bi-Directional
Destinations Concentrated Highly Dispersed
Demand Variance Stable Fragmented
Table 1: the comparison between traditional and e-commerce supply chain characteristics
(ADAPTED: E-commerce Logistics and Fulfilment: Delivering the Goods. Bayles, D.L.)
As depicted in the table above there are different characteristics between the supply chain
features of an e-commerce supply chain to that of a traditional supply chain. Therefore, it can
be argued that the fulfilment practices of traditional supply chain management cannot be
directly applied to an e-commerce supply chain.
According to Tarn et al. (2003), e-commerce businesses are influenced by a sizable but varying
amount of customers, thus perpetuating a high degree of demand variability. This necessitates

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the importance of information sharing across the supply chain in order to effectively respond
to changes in demand expeditiously. Ultimately an e-commerce supply chain’s success or
failure is dependent on how integrated the order fulfilment system is, in order to capture and
share information to all supply chain constituents (Phan, Chen & Ahmad, 2005).
2.2 Electronic Commerce Fulfilment (E-fulfilment)
According to Tarn et al. (2003), the most important consideration when conceptualising an e-
fulfilment strategy is that traditional distribution systems cannot effectively provide for the
needs of individual customers. The e-fulfilment system requires highly flexible and agile
systems and procedures, resolute service levels, and an integrated communication system by
which information can be shared to all involved members of the supply chain.
The process of e-fulfilment includes all the activities involved with receiving an order online,
managing the transaction, warehouse management, transportation management,
communication with the customer and reverse logistics management (Muffatto & Payaro,
2004). Although the activities of e-fulfilment appear similar to traditional fulfilment, emphasis is
placed on the use of information and technology to enable the processes to be executed in a
more integrated and collaborative manner. Ricker and Kalakota (1999) state that information
technology has facilitated the success of e-fulfilment. This is due to the fact that it does not
only support new e-fulfilment strategies, it also creates them. Tarn et al. (2003) supports this
as more rigorous customer requirements have necessitated the use of automation as well as
leveraging vast amounts of information. The aim of this is to integrate the supply chain and
therefore achieve superordinate levels of customer service. It is important to note that this can
only be done with the use of information technology.
E-fulfilment is the operational activity which demands the most attention by e-tailers in terms
of bolstering competitive prowess and most e-businesses underestimate the importance of a
resolute e-fulfilment strategy (Lummus & Vokurka, 2002). Ricker and Kalakota (1999)
substantiates that e-commerce customers are most appealed by the convenience, higher
servicing levels, lack of errors and timely delivery of products. If an e-fulfilment strategy can
promote the aforementioned appeals, the result is customer satisfaction, repeat business and
higher profit margins (Lummus & Vokurka, 2002).
The functional competencies of traditional fulfilment such as convenience, speed, variety,
service and quality are still applicable. These competencies need to be considered
concurrently with the additional customer requirements, which have been propagated by e-
commerce. The customer requirements that e-commerce requires consideration of are
inventory availability and order status. The e-commerce customer wants to be more informed
as they are not obtaining the instantaneous gratification of buying a product in store but rather
buying the “service envelope” (Lummus & Vokurka, 2002). According to Benbassat (2014) the

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service envelope can be defined as the maximum achievable service outcome that an
organisation can provide for a given level of resources it invests, whilst implementing the best
practices available.
E-fulfilment facilitates the opportunity to satisfy customers with unprecedented success by
using technology, information and collaborative integration to provide highly demanding
customers with a more prompt service, irrespective of their geographical location (Muffatto &
Payaro, 2004). Furthermore, the operational success of e-fulfilment is dependent on e-
businesses’ ability to implement fulfilment strategies and technological infrastructure in a way
to best suit every aspect of the “service envelope” expected by the customer (Ricker &
Kalakota, 1999).
The success of e-fulfilment is dependent on the integration and synchronisation of all involved
processes. In order to foster synchronisation and integration all the processes of fulfilment
need to have some degree of interconnectivity, which will allow for information to be captured,
interpreted and shared through the entire process of fulfilment. This interconnectivity can be
referred to as the infostructure (Tarn et al., 2003).
2.3. Key e-fulfilment processes
According to Tarn et al. (2003) key e-fulfilment processes include order management,
warehousing and the delivery process.
2.3.1. Order Management
The first challenge which e-tailers face is the heightened expectations and bargaining power
of customers (Tarn et al., 2003). Customers expect the prompt and easy execution of online
orders. Additionally, the online platform offered to the customer needs to be user-friendly and
facilitate communication between the customer and the e-business. Furthermore, the interface
needs to be secure in order to protect credit card information and the identity of customers
from larceny.
The “add to cart” action is the first contact with the customer by which all the service
requirement information is generated. Particulars such as quantity, physical product
configuration, location of delivery and expedited shipment requirements are captured by the
Active Server Page (ASP). The customer completes the online purchase requirements through
the e-businesses website. This information is then sent to the Order Management System
(OMS) (Chow, 2004). The OMS bridges the gap between the Supply Chain Planning (SCP)
system and the Transport Management System (TMS) and the Warehouse Management
System (WMS) and the OMS formulates how orders will be handled (Tarn et al., 2003).
According to Phan et al. (2005), the operational success of e-commerce requires a
multifaceted communication link throughout the supply chain in combination will a highly

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integrated OMS. The level of integration is strongly correlated with the level of the service the
customer will experience. Ricker and Kalakota (1999) stipulates that there is often a weak
integration between the ASP and the Enterprise Resource Planning (ERP) system of most e-
businesses and ideally the ASP, ERP system and WMS need to be as integrated as possible
in order to achieve true synchronisation. This is even more imperative for e-tailers, which are
outsourcing fulfilment processes and is quintessentially the selling point for e-fulfilment service
providers. Moreover, supporting standardised informational formats and communication points
amongst trade partners can facilitate this synchronisation (Ricker & Kalakota, 1999).
Integration is supported by the use of Electronic Data Interchange (EDI), which has become a
necessity to ensure transference of information across the supply chain. The more integrated
the ASP, ERP system, TMS, OMS, SCP system and WMS the more accurately and promptly
the transfer of information across the supply chain can occur. This is particularly relevant if a
customer attempts to “add to cart” only to be faced with an out of stock notification. This
immediately results in customer dissatisfaction and a deterred future customer (Ricker &
Kalakota, 1999).
2.3.2. Warehousing
According to Andel (2000), behind every successful website there is a cluster of logistics
activities that deliver the e-tailer’s promises. The ability of the logistics activities to deliver that
promise will ideally result in customer satisfaction. Furthermore, the warehousing component
of an e-fulfilment will influence customer satisfaction more so than site functionality and ease
of the ordering process (Romaine, 2000). It can be said that the process of warehousing is the
central determinant of how quickly products move through the fulfilment process. Tarn et al.
(2003) propose that the latest technology should be applied to the picking and packing
functions in conjunction with the appropriate operational and informational systems that
facilitate the unique complexities of the e-fulfilment process.
Customers have the misconception that the process of warehousing operates instantaneously
much like the functionality of the e-tailer’s website. The order fulfilment from the warehouse is
the point at which the virtual world meets the physical world, and successful e-fulfilment
strategies are multi-layered and saturated with numerous decision points. With the
warehousing component being the process which has the majority of decision points (Tarn et
al., 2003). Although there are multiple decision points, the underlying objective of e-commerce
warehousing is to have a “one touch distribution” as less handling results in diminished costs
and faster inventory velocity through the supply chain. Romaine (2000) argues that the only
measure that will permit “one touch distribution” is through the thorough selection and
integration of products, processes and information technology. Additionally, it is integration and
automation that allow the warehousing process to become more scalable, to mitigate risk, to

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be more flexible, to operate faster and to become less prone to errors (Andel, 2000). All of
which are primary distribution requirements of e-commerce supply chains.
The premise of an e-fulfilment system is to design a facility to allow for a large order volume
and explicit customer service requirements, which are prevalent in global business-to-
consumer (B2C) e-commerce. Therefore, in an e-commerce supply chain the warehouse is
converted into a multi-channel e-fulfilment centre whereby products, services and information
are extremely synchronised in order to leverage resolute levels of customer service (Tarn et
al., 2003). This is made possible by the WMS.
A WMS is required to achieve synchronisation and integration by which all the e-fulfilment
processes can experience true connectivity. The WMS is an operational imperative for e-
tailer’s as it will allow for all the activities such as sorting, packing, bar coding and picking to
be perpetually unified (Tarn et al., 2003). The WMS should be as integrated as possible with
the ERP system, OMS and the SCP system of the e-tailer in order to provide decision makers
with qualitative and quantitative “real time” data (Ricker & Kalakota, 1999). Furthermore, the
WMS facilitates the collection of warehouse performance statistics via Automated Data
Collection (ADC) and multiple verification points throughout the warehousing process (Agatz,
Freischmann & Nunen, 2007). The collection of warehouse performance data and multiple
verification points allow e-tailers to identify and correct inefficiencies quickly so to improve
accuracy and expedite the fulfilment process. Andel (2000) supports that the WMS should be
flexible, especially due to the volatility of demand which e-businesses are faced with. As a
result flexibility of the WMS will allow for scalability when the throughput of the warehouse
fluctuates.
2.3.3. Delivery
According to Tarn et al. (2003), the main challenge faced by e-tailers is the customer
expectation of fast delivery of the ordered product. Therefore, the delivery process has a major
influence on customer satisfaction (Romaine, 2000). E-commerce delivery becomes complex
due to the fact that the customer can be located anywhere in the world. Furthermore,
customers expect the e-tailers to deliver every product that they market in a time sensitive
manner. The shipping process of fulfilment is a commonly outsourced process of e-tailers
(Pyke et al., 2001).
Traditional commerce delivery in the field of retail follows the process of generating stocking
schedules, receiving the product in store, picking the product from the backroom, stocking the
shelf, filling the shopping cart, checkout and delivery (SCC, 2012). Whereas delivery, with
respect to e-tailers, is a very distinct process as there are multiple ways in which the product
can be delivered. According to Lummus and Vokurka (2002), the ways e-tailers can distribute
their products to the customer include transporting from an existing Distribution Centre (DC),

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acquiring a dedicated warehouse or e-fulfilment centre, using a distributive 3rd
Partly Logistics
(3PL) Provider, ship directly from supplier to customer (Drop Shipping), ship from existing retail
stores or shipping to a collection point (Clicks-to-Bricks). All of which, respectively, offer unique
advantages. The distribution strategies differ as much as the e-tailers themselves and there is
no generic strategy that can be endorsed. Additionally, the strategy implemented does not
always remain unchanged and needs to be constantly revised (Tarn et al., 2003).
Bayles (2001) stipulates that OMS, WMS, SCP system and ERP system provide the
connections by which information is collected and analysed to be applied to the Transportation
Management System (TMS). The TMS manages the delivery component of the e-fulfilment
process and spans the life cycle of the shipment. Furthermore, the TMS allows the e-tailer to
gain visibility of shipments which have been dispatched to customers (Ricker & Kalakota,
1999). The information collected from the TMS can then be relayed to customers for
confirmation of dispatch, as well as sequentially updating them on “milestones” through the
transportation leg. This can be an application of customer expectation management as it
decreases the chance of customer dissatisfaction.
2.4. E-fulfilment key enablers
According to Tarn et al. (2003) the infostructure of an e-tailer is vital to the successful
implementation of e-fulfilment. Cho, Ozment and Sink (2007) also stipulate that outsourcing is
a key e-fulfilment enabler.
2.4.1. Infostructure
Tarn et al. (2003) stipulate that in the context of e-fulfilment, infostructure is the cross functional
network capable of facilitating the exchange of information across multiple platforms internally
and externally throughout the supply chain. The systems involved in the e-fulfilment process
include the ERP system, the OMS, the WMS, the TMS and the SCP system. All
aforementioned systems allow for the collection of vital information across the entire e-
fulfilment process.
Chow (2004) suggests that the integration of the different systems can significantly improve
the performance of supply chain performance and ideally, the more integrated the systems are
the better the e-fulfilment process will operate. In addition, the complexity of e-fulfilment
necessitates that information be used well. Lee and Whang (2001) suggest that the use of
accurate and up-to-date information on demand fluctuations allows the delivery of products to
occur in the most immediate manner. Moreover, this will increase efficiencies and lower
associated costs. E-tailers aim to use their infostructure to assemble or allocate products
according to demand, thereby shipping products faster with fewer costly intervening stages.

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2.4.2. Outsourcing of logistics activities
Outsourcing can be defined as “the relationship between a shipper which, compared with basic
services, has more tailored offerings, encapsulates a broader range of service functions and
is characterised by a long term and mutually beneficial relationship” (Cho et al. 2007).
The fulfilment process is capital intensive and the avoidance of large investment in supply
chain infrastructure can be advantageous. A study by Cho et al. (2007), found that outsourcing
some and sometimes all logistics processes can greatly enhance a business’s financial
performance, especially in an e-commerce setting. Kotabe, Mol and Murray (2008) endorse
that outsourcing can improve strategic focus by reducing assets, lowering production costs,
providing strategic flexibility and avoiding bureaucratic costs. However, outsourcing can also
be harmful to an organisation as it may increase transactional costs because of higher levels
of coordination. It can also impede intra-organisational innovation and potentially decouple
important processes (Bayles, 2001).
Tarn et al. (2003) report that many e-businesses resort to outsourcing their e-fulfilment
processes to 3PL’s. Through this they avoid the massive capital investment of establishing
fulfilment facilities, and, therefore, should consider the viability of outsourcing. The incidence
and diversity of 3PL’s allow e-businesses a wealth of choice when deciding what processes to
outsource. The majority of e-tailers outsource some if not all of their fulfilment processes to
focus on core competencies (Agatz, Fleishmann & Nunen, 2007).
It is important to note that outsourcing to a 3PL comes with the advantage of a faster set up
time and thus appeals to prospecting start-up e-tailers and most package carriers, such as
Fedex and UPS, providing some degree of e-fulfilment service capability (Berger et al., 2001).
However, outsourcing can be problematic as integrated fulfilment requires constructing the e-
fulfilment capability into an existing bulk distribution centre. Additionally, traditional logistics
companies are apprehensive to partner in supply chain networks as they have less experience,
and therefore faith, in the ability of new technology to successfully integrate the e-tailer to the
3PL (Berger, 2001). It is deep technological integration between e-tailer and 3PL where the
significant advantages of outsourcing e-fulfilment processes are abundant (Ricker & Kalakota,
1999).
2.5. Key concepts of e-fulfilment
According to the literature review there are a multitude of factors which are required to
successfully execute the processes of e-fulfilment. In order to understand what constitutes
success with regards to e-fulfilment processes the following table summarises the concepts
identified in the literature that need to be addressed in order to achieve successful e-fulfilment:

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E-FULFILMENT
PROCESSES
KEY E-FULFILMENT CONCEPTS
Order Management 1. The online platform (ASP) should make order placement easy
2. The online platform should be able to facilitate multifaceted
communication (EDI) between the customer and the e-tailer
3. The online platform must be able to capture order particulars
accurately
4. The OMS must support standardised informational formats and
communication points
5. The OMS must bridge the gap between the SCP, ERP system TMS
and WMS to ensure true operational synchronisation
Warehousing 1. The warehouse of e-tailers needs to be converted in to an e-fulfilment
centre whereby products, services and information are intimately
synchronised.
2. The latest technology should be utilised in the areas of picking and
packing concurrently with the appropriate operational and
informational systems (OMS, TMS, SCP system and ERP system)
3. Warehousing should have multiple decision points supported by
multiple verification points to cultivate operational efficiencies
4. Warehousing should attempt to create “one touch distribution” to
minimise handling costs and increase product velocity
5. The warehousing process for e-tailers should be designed to allow for
risk mitigation, increased product velocity, operational flexibility and
scalability to variations in demand
6. Integration and automation (such as automatic data collection) are
vital to allow for risk mitigation, flexibility, speed and scalability.
7. The WMS should be as tightly integrated as possible with the OMS,
ERP system, SCP system and the TMS.
Order Delivery 1. Outsourcing the order delivery process to avoid substantial capital
investment
2. There are a multitude of ways in which e-tailers can deliver their
product, the e-tailer should choose according to cost and the effect on
customer satisfaction that the different delivery options offer
3. The OMS, WMS, SCP system and ERP system provide the input data
to the TMS. Furthermore, the TMS should be closely integrated with
the all the aforementioned systems
4. The TMS should capture and relay real-time data to the e-tailer to
ensure order visibility throughout the transportation leg of e-fulfilment
so that the e-tailer can relay the information to the customer.
Table 2: The Key Success Factors of e-Fulfilment
3. PROBLEM INVESTIGATED
The study will focus on e-fulfilment processes that contribute to the operational success of e-
commerce supply chain management. The processes include order management,
warehousing and order delivery. Furthermore, the implementation of technology to facilitate
and integrate the aforementioned processes will be emphasised.
Therefore, the intention of this study is to provide an understanding of how the implementation
of e-commerce as a purchasing platform affects supply chains in the different processes of e-
fulfilment. At the hand of a case study the e-fulfilment processes of order processing,
warehousing and delivery will be addressed as well as how technology is used to enable and
facilitate these processes. The study will investigate the practices of a South African E-

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commerce company so to compare the aforementioned principals of e-fulfilment. These
companies being Superbalist and Parcelninja. It is important to mention that returns
management, quintessentially an e-fulfilment process, will be omitted from the scope of the
study.
4. RESEARCH OBJECTIVES
4.1. Primary research question
The study will determine and provide an understanding of which e-fulfilment processes and
technology are required to facilitate operational success of e-fulfilment within an e-commerce
supply chain. The use of primary research collected from the South African e-tailers,
Superbalist and Parcelninja, will be employed to further elaborate what technologies are being
used to facilitate e-fulfilment practices.
4.2. Secondary research questions
The e-fulfilment processes and practices of e-tailer supply chains will be examined in order to
interpret the intricacies of what contributes to the successful implementation of e-commerce
as a buying platform. This study will investigate how technology is used in the following e-
fulfilment processes that contribute to successful e-commerce.
 Order management
 Warehouse management
 Order delivery and transport management
 The importance of outsourcing e-fulfilment processes to enable supply chain success
The aforementioned secondary research objectives will be compared to the key e-fulfilment
concepts mentioned in the literature.
4.3. Research method
The e-fulfilment practices of Superbalist and Parcelninja will be compared to the key e-
fulfilment concepts mentioned in the in the literature review. The table has been constructed
by identifying key technological requirements of e-fulfilment processes that appear in literature.
The aforementioned key e-fulfilment concepts are required to effectively and efficiently perform
e-fulfilment.
The study has been exploratory in nature utilising a non-empirical approach with the use of
primary research in the form of semi-structured interviews in affirmation to the secondary
research. The study will also provide insight into what e-fulfilment practices are currently being
undertaken in a South African context. Secondary research will be used to provide perceptivity
of how e-fulfilment can be successfully implemented from the global arena of e-commerce.

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As previously stated, primary data was collected from two South African companies. As a
result, these companies will be used to elaborate as to how their e-fulfilment processes are
performed in accordance with the key concepts mentioned in the literature. The first company
interviewed was Superbalist, an online fashion and art retailer. Superbalist defines their value
proposition as providing unique new fashion products, rather than premium fashion products,
that are of significant quality and are offered at an affordable price (Superbalist, 2015). Mikael
Hanan (2015), the chief operating officer of Superbalist, suggests that customer loyalty is
cultivated due to an idyllic online experience and a superior e-fulfilment process.
The second company interviewed, Parcelninja, is a 3PL who Superbalist outsources their e-
fulfilment process to. Parcelninja offers scalable warehousing and fulfilment processes to e-
commerce companies. According to Terrence Murphy (2015), cofounder and chief operations
officer at Parcelninja, their value proposition is their ability to provide a centralised e-fulfilment
process which offers scalability, flexibility and speed to their clients.
5. RESULTS
Murphy (2015) of Parcelninja emphasises that they offer full end-to-end integration through
their self-service web interface and their self-programmed Active Program Interface (API). The
self-service web interface allows clients to manage their stock on an easy to use web platform,
ideally replacing what would be the OMS. As Daniel Van Flymen (2015), a software engineer
at Parcelninja, mentioned Parcelninja’s API “plugs in” to a client’s existing SCP and ERP
system to offer effective integration throughout the entire e-fulfilment process. The high level
of integration allows the client to manage their inbound and outbound stock, manage inventory,
provide customers with updates throughout the e-fulfilment process, manage reverse logistics
and obtain real time data throughout the e-fulfilment process.
The process of e-fulfilment on the part of Superbalist will be further discussed as well as the
impetus which Parcelninja has on the success of Superbalist as one of the fastest growing
fashion e-tailers in South Africa.
5.1. Infostructure
Parcelninja, Superbalist and Parcelninja’s network of parcel couriers need the implementation
and use of an infostructure in order to effectively synchronise their operations. In order to
provide an understanding of how the interconnectivity of the supply chain partners is calibrated,
the following diagram was utilised:

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Diagram 1: The Infostructure of Superbalist, Parcelninja and Parcel Courier Network
As can be seen by the diagram the integration of systems such as the ASP of Superbalist, the
WMS and API of Parcelninja and the TMS of the parcel couriers is well calibrated. The
interconnectivity of the systems allows for a high degree of integration between the supply
chain partners and ensures that they benefit from operational synchronisation.
5.2. Order management
Hanan (2015) stipulates that Superbalist has a user friendly Active Server Page (ASP) or
website which they catalogue the 14 000 SKU’s they sell. The customer simply signs up to
become a member of Superbalist, fills their shopping cart with the desired items, completes
the informational input requirements and proceeds to payment. This payment can be made via
credit card, EFT, Payfast, Discovery, e-bucks or Snapscan (Superbalist, 2015).
Once the payment is made by the customer the ASP of Superbalist captures all of the relevant
order information. Furthermore, Superbalist’s ASP is integrated with the API of Parcelninja and
EDI is used to relay the order placement from Superbalist’s ASP to the WMS of Parcelninja.
The WMS of Parcelninja effectively operates as Superbalist’s ERP system, SCP system and
OMS due to the fact that the Parcelninja software engineers have created an all-encompassing
WMS which forcibly integrates the different processes of e-fulfilment (Mikael Hanan, 2015).
According to Daniel Van Flymen (2015), a software engineer at Parcelninja, the fact that the
WMS of Parcelninja operates as a multifaceted system ensures that informational formats are
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standardised. This effectively bridges the gap between the ASP and the WMS to ensure
synchronisation.
5.3. Warehousing
Parcelninja houses all of Superbalist’s stock at their warehouse. The Parcelninja’s staff
component consists of primarily software engineers who improve, manage and integrate the
WMS in perpetuity. Murphy (2015) argues that the ideology of Parcelninja’s WMS is for it to be
able to plug into any prospective clients’ existing OMS, SCP and ERP system so that the client
can manage their stock throughout the e-fulfilment process. Parcelninja’s API provides
Superbalist with a real-time dashboard whereby they can gain access to the relevant
performance metrics associated with the e-fulfilment process, such as individual item age,
inventory levels, replenishment notifications and dispatch (Parcelninja, 2015).
Daniel Van Flymen (2015) stipulates that Parcelninja’s warehousing offers a multitude of
advantageous characteristics to Superbalist. Firstly, their warehouse provides cost savings as
Parcelninja employs the latest technology in order to streamline processes and create a more
information affluent e-fulfilment process. They afford Superbalist access to a highly automated,
synchronised and integrated warehouse that is able to offer reduced costing in the areas of
handling, packaging and storage. Secondly, Parcelninja operates the first completely
paperless warehouse in South Africa. All of their warehousing processes are executed digitally
using cloud software which applies automated data capturing (ADC) that directs real time
information to the WMS which relays the information to Superbalist’s dashboard (Parcelninja,
2015).
Receiving staff are equipped with a touch screen computer, scanners, barcode printers and
volumetric instruments that capture all the inventory data upon receipt of stock from the
supplier. Again, ADC directs the information to the WMS. This is the first step of the three stage
verification process (Parcelninja, 2015). Additionally, picking staff are fitted with mobile
devices with barcode scanners that direct them through the picking process. The picking
process works on a first-come-first-serve basis and once the pick is complete the tote is
scanned which signifies the second stage of verification (Murphy, 2015). The tote is then sent
to the packaging staff which are also equipped with touch screen computers, scanners,
barcode printers and volumetric instruments. The packaging staff package the contents of the
tote in the clients desired packaging so that the contents are sufficiently protected and sealed,
the package is then weighed and measured to produce the relative volumetric dimensions
used to quote the shipment of the product. According to Murphy (2015), this signifies the final
stage of the triple verification process.
One of Parcelninja’s unique selling points is that they offer fine picking and storage cost
reduction (Van Flymen, 2015). According to Murphy (2015), this is particularly relevant in a

15. 15
South African context as no other 3PL offers fine picking and can assure storage cost
reduction. All warehousing 3PL’s in South Africa use a bin allotment technique for storage of
inventory. Essentially clients that cannot fill the bin with their inventory pay for unutilised space.
Parcelninja prevents Superbalist from paying for unutilised space due to the fact that
Parcelninja employs a “chaotic” storage methodology whereby products are placed anywhere
that there is an available space (Murphy, 2015). During packing, floor staff simply find a vacant
shelving space. The staff will scan the unique barcode which is located on all the shelves within
the warehouse and then scan the barcode placed on the stock which has been printed by the
receiving staff. The location of the stock is then electronically transmitted to the WMS whereby
the location is logged and ready to be located and picked upon request. The “chaotic” storage
methodology allows Parcelninja the advantage of efficiently utilising warehouse space, an
advantage derived from the use of technology, whilst allowing Superbalist to avoid bearing the
cost of unused storage space (Murphy, 2015).
5.4. Delivery
Parcelninja offers “Courier Live-Quote” software which is a multi-courier integrated system
(Parcelninja, 2015). Parcelninja partners and integrates with various couriers in South Africa
due to the fact that the transportation component of e-fulfilment is incredibly capital demanding.
Once the volumetric particulars are captured during the packaging stage and appear on the
WMS, Parcelninja obtains quotes from their courier network, the 3PL parcel carrier which offers
the lowest quote will be chosen, therefore providing their clients with the cheapest delivery
rates whilst providing Superbalist with real-time cost and location data which Superbalist can
relay to their customers (Murphy, 2015). The “Courier Live-Quote” system also provides
Superbalist customers to decide to expedite their delivery at an additional charge. Parcelninja
has a network of 3PL parcel carriers which they outsource the delivery process to. This network
consists of Dawn Wing, Bex Express, Fastway Couriers, DHL and Fedex (Parcelninja, 2015).
The fact that Parcelninja uses a pool of 3PL parcel carriers allows them to leverage lower
delivery costs on behalf of Superbalist. Parcelninja fosters the relationships with the respective
courier companies as well as their ability to produce attractive volumes for the 3PL parcel
carriers to distribute (Parcelninja, 2015). Furthermore, Parcelninja’s WMS is integrated into the
TMS of the courier companies therefore Parcelninja relays real-time tracking data from the
courier company to Superbalist who then relay that information to the customer. Therefore, the
customer is informed upon dispatch until the parcel arrives at their door.
5.5. Outsourcing
Superbalist outsource their e-fulfilment processes to Parcelninja and Parcelninja outsource the
order delivery process to their network of parcel couriers. The advantageous use of
outsourcing is evidently seen in the case of Superbalist. Outsourcing has effectively allowed

16. 16
both Superbalist and Parcelninja to improve their strategic focuses by reducing costs, creating
operational flexibility and allowing for operational scalability. The outsourcing allows
Superbalist to focus on the marketing and demand management of their products, it allows
Parcelninja to focus on driving efficiencies in the warehousing process and it allows the
network of parcel courier’s focus on planning and implementing an effective order delivery
process.
Furthermore, the true success of the e-fulfilment processes of Superbalist are driven by the
deep technological integration that Parcelninja’s WMS facilitates. The WMS of Parcelninja
synchronises the order management perspective of Superbalist’s ASP with the TMS’s of their
courier network. Essentially it is the Parcelninja WMS that creates the informational link
between all the supply chain partners. Additionally, the WMS captures and dispenses all the
key metrics required by the supply chain partners, thus providing a highly integrated and
synchronised group of supply chain partners.
6. CONCLUSION
Firstly, the topic of information technology should be emphasized and thereby the importance
of information technology to Superbalist and Parcelninja. The use of the appropriate
information technology appears in all the processes of e-fulfilment. Furthermore, integration of
systems allows for operational efficiency of e-fulfilment. Additionally, it facilitates true
synchronisation with all supply chain partners. Integration allows Superbalist to become more
scalable, to mitigate risk, to be more flexible, to operate faster and respond more effectively to
demand variations through the practices of Parcelninja.
Technology should be accentuated and implemented as much as possible to all processes of
e-fulfilment. Suffice to say that e-fulfilment is made inconceivable without the use of an ASP,
OMS, WMS, TMS, SCP system, ERP system, ADC and EDI. All of the aforementioned have
been implemented in some way, shape or form by Superbalist and Parcelninja. According to
the case study it is seen that Superbalist, Parcelninja and the network of parcel couriers employ
all of the key concepts of e-fulfilment highlighted in literature.
The act of outsourcing e-fulfilment processes can only be done successfully when there is
operational synchronisation due to integration. This can be seen at the hand of the case study.
Without the integration of e-fulfilment systems the vital data capturing through ADC and the
pivotal information transfers through EDI are inconceivable. Furthermore, without technology
e-fulfilment becomes impossible, the establishment of an infostructure is critical. There is a
high incidence of outsourced processes, with regard to Superbalist in their e-fulfilment
processes. This supports the fact that outsourcing e-fulfilment processes is where an e-tailer
can leverage competitive advantages. This is evident due to the nature and structures outlined
in the study.

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7. IMPLICATIONS
According to Murphy (2015) the success of Parcelninja is due to their ability to integrate with
their supply chain partners. As can be seen by the results, Parcelninja and Superbalist have
effectively implemented the e-fulfilment key concepts outlined in the study. Furthermore, it can
be argued that the growth of Superbalist and Parcelninja can be attributed to their ability of
carrying out the aforementioned key success factors. Superbalist is currently experiencing
100% year-on-year growth rate (Hanan, 2015). Moreover, Parcelninja is currently experiencing
a staggering 400% year-on-year growth rate (Murphy, 2015). The ability of the aforementioned
companies to implement the key e-fulfilment concepts can only be attributed to the degree of
integration they have established with the appropriate use of technology.
Parcelninja and Superbalist’s success is a by-product of their ability to analyse, augment and
implement the e-fulfilment processes of world class organisations such as Norstrom and
Amazon. By understanding the complexities faced by globally recognised e-tailers and e-
commerce exemplars, Superbalist and Parcelninja gain insight into what works and what does
not. Furthermore, allowing them to implement an e-fulfilment strategy which arguably one of
the most resolute in South Africa.
The case study portrays that the e-commerce practices are strategically feasible in the context
of South Africa. The incidence of 3PL’s, which facilitate the practice of e-fulfilment and thus e-
commerce, are increasing significantly. It is now becoming known to industry members of B2C
commerce that e-commerce is practicable and can be executed successfully in South African
markets. It is the intention of this study to be used in context with South Africa. Furthermore,
to substantiate that the rate of adoption of e-commerce is growing rapidly and that the
importance of a resolute and integrated e-fulfilment strategy, which is enabled by technology,
is pivotal in pursuing success in the world of e-commerce.
8. RECOMMENDATIONS
Due to the fact that the study was industry specific, it is recommended that future research in
the field of e-fulfilment in South Africa should be done in multiple industries and not exclusively
for B2C retailers. Future research could also be done more expansively and focus on both
upstream and downstream logistics processes, this study completely omitted the process of
returns management, which can be considered a significant e-fulfilment process due to returns
management’s ability to resolve customer dissatisfaction. Additionally, future research could
be undertaken with a more quantitative and operational perspective whereby the technological
influences on e-fulfilment can be justified with numerical evidence.

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