2. Order Fulfillment and Logistics:
An Overview
• The EC Order Fulfillment Process
o Activity 1: Making sure the customer will pay
o Activity 2: Checking for in-stock availability
o Activity 3: Arranging shipments
o Activity 4: Insurance
o Activity 5: Replenishment
o Activity 6: In-house production
o Activity 7: Use contractors
o Activity 8: Contacts with customers
o Activity 9: Returns
• *Reverse logistics
4. Order Fulfillment and Logistics:
An Overview
• The Importance of Order Fulfillment
o Correct product delivery
o On time delivery
o Order tracking
o Speedy delivery
o Free shipping
o Order Fulfillment and the Supply Chain
5. Figure 13.2 Highlights of EC order fulfilment
Orders
received
Customizatio
n?
Orders
processed;
Warehousing
Supply
Chain
problems
Solutions
13.5
13.3
13.6
RFID
13.7
M-T-O
13.2
Delivery to
customers
13.4
Yes
No
6. ORDER FULFILLMENT IN MAKE-TO-ORDER
(MTO) AND MASS CUSTOMIZATION
• Mass Customization, Make-to-Order, and Assemble-
to-Order
• Make-to-Order and Assemble-to-Order
7. WAREHOUSING, ROBOTS AND WAREHOUSE
MANAGEMENT SYSTEMS
• Using Robots (Bots) in Warehouses
• Warehouse Management System (WMS)
8. DELIVERY TO CUSTOMERS:
FROM ROBOTS TO DRONES
• Speeding Up Deliveries: From Same Day to a Few
Hours
o Same Day Delivery
o Delivery by Drones
o Obstacles to Drone Delivery
o Delivery by Robots
9. Problems in Order Fulfillment
Along Supply Chains
• Uncertainties in Demand
• Inadequate Logistical Infrastructure
o *Third-party logistics suppliers (3PL)
• Inefficient Financial Flows
• Lack of Information Sharing
10. Solutions to Order Fulfillment
Problems Along the Supply Chain
• Improvements in the Order-Taking Activity
• Warehousing and Inventory Management
Improvements
o *Warehouse management system (WMS)
o Inbound functions
o Inventory functions
o Resource management
o Outbound functions
o 3PL/divisional support
11. Solutions to Order Fulfillment
Problems Along the Supply Chain
• Changing the Structure and Process of the
Supply Chain
• Speeding Deliveries: From Same Day to a Few
Minutes
o Delivery by Drones
o Same Day Delivery
• Partnering Efforts and Outsourcing Logistics
o Using Robots in Warehouses
13. Solutions to Order Fulfillment
Problems Along the Supply Chain
• Integrated Global Logistics Program
• Order Fulfillment in Make-To-Order and Mass
Customization
o Fulfilling Orders
14. Solutions to Order Fulfillment
Problems Along the Supply Chain
• Handling Returns (Reverse Logistics)
o Return the item to the place of purchase
o Separate the logistics of returns from the logistics
of delivery
o Completely outsource returns
o Allow the customer to physically drop the
returned item at a collection station or a physical
store of the same vendor
o Auction the returned items
15. Solutions to Order Fulfillment
Problems Along the Supply Chain
• Order Fulfillment in B2B
o Using E-Marketplaces and Exchanges to Ease
Order Fulfillment Problems in B2B
o Order Fulfillment in Services
o Other Solutions to Supply Chain Problems
• *Visibility
• Innovative E-Fulfillment Strategies
o *Merge-in-transit
• Integration and Enterprise Resource Planning
o The Supply Chains of Tomorrow
16. RFID as a Key Enablers in Supply
Chain Management
• The Essentials of RFID
o *Radio frequency identification (RFID)
• RFID Applications in the Supply Chain Around
the Globe
o RFID at Starbucks
o RFID at Deutsche Post (Germany)
o RFID at Atlantic Beef Products (Ontario, Canada)
• *Collaborative Planning, Forecasting,
and Replenishment
20. Other E-Commerce
Support Services
• Consulting Services
• Directory Services, Newsletters, and Search
Engines
o Directory Services
o Newsletters
o Search Engines and News Aggregators
21. Other E-Commerce
Support Services
• More EC Support Services
o Trust Services
o Trademark and Domain Names
o Digital Photos
o Access to Commercial Databases
o Knowledge Management
o Client Matching
o E-Business Rating Sites
o Security and Encryption Sites
o Web Research Services
o Coupon-Generating Sites
22. Other E-Commerce
Support Services
• Outsourcing EC Support Services
o Why Outsource EC Services?
• The process includes the following major steps:
1. EC strategy initiation, formulation, and implementation
2. Systems design
3. Building (or buying) the systems
4. Hosting, operating, and maintaining the EC site
IT Outsourcing and Application Service
Providers
23. Lean supply chain?
A lean supply chain is a supply chain operating at its very best: it supplies the
goods or products to the end customer in the most efficient manner possible, with
minimal waste, loss, and with enough flexibility that it can adapt to unexpected
delays
Outsourcing is when a company negotiates a contract with a third party to perform
a specific function. When outsourcing a process or operation, it is vital to find a
company or person that specializes in the task at hand. However, offshoring is
when a company sends in-house jobs to be performed in another country.
A Virtual Supply Chain (VSC) is the informational representation or data
visualization of the organization's physical supply chain network. This includes,
though is not limited to manufacturing plants, warehouses along with the supply
chain components of the extended enterprise
Mass customization describes the concept of producing single-batch, customized
products at the same cost and speed of traditional volume manufacturing
methods. While mass customization promises huge gains in efficiency and
customer satisfaction, it also presents new challenges for product brands
