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Chapter12OrderFulfillmentAlongtheSupplyChainLearningObjectivesDefineECorderfulfillmentanddescribetheECorderfulfillmentprocess.DescribethemajorproblemsofECorderfulfillment.DescribevarioussolutionstoECorderfulfillmentproblems.DescribeRFIDsupplychainapplications.DescribecollaborativeplanningandtheCPFRmodel.DescribeotherECsupportservices.Discussthedriversofoutsourcingsupportservices.OrderFulfillmentandLogistics:AnOverviewBasicConceptsofOrderFulfillmentandLogistics*OrderfulfillmentOverviewofLogistics*LogisticsTraditionalVersusECLogistics*E-logisticsOrderFulfillmentandLogistics:AnOverviewTheECOrderFulfillmentProcessActivity1:MakingsurethecustomerwillpayActivity2:Checkingforin-stockavailabilityActivity3:ArrangingshipmentsActivity4:InsuranceActivity5:ReplenishmentActivity6:In-houseproductionActivity7:UsecontractorsActivity8:ContactswithcustomersActivity9:Returns*ReverselogisticsOrderFulfillmentandtheLogisticsProcessOrderFulfillmentandLogistics:AnOverviewTheImportanceofOrderFulfillmentCorrectproductdeliveryOntimedeliveryOrdertrackingSpeedydeliveryFreeshippingOrderFulfillmentandtheSupplyChainProblemsinOrderFulfillmentAlongSupplyChainsUncertaintiesinDemandInadequateLogisticalInfrastructure*Third-partylogisticssuppliers(3PL)InefficientFinancialFlowsLackofInformationSharingSolutionstoOrderFulfillmentProblemsAlongtheSupplyChainImprovementsintheOrder-TakingActivityWarehousingandInventoryManagementImprovements*Warehousemanagementsystem(WMS)InboundfunctionsInventoryfunctions

Resourcemanagement

Outboundfunctions

3PL/divisionalsupportSolutionstoOrderFulfillmentProblemsAlongtheSupplyChainChangingtheStructureandProcessoftheSupplyChainSpeedingDeliveries:FromSameDaytoaFewMinutesDeliverybyDronesSameDayDeliveryPartneringEffortsandOutsourcingLogisticsUsingRobotsinWarehousesChangesintheSupplyChainSolutionstoOrderFulfillmentProblemsAlongtheSupplyChainIntegratedGlobalLogisticsProgramOrderFulfillmentinMake-To-OrderandMassCustomizationFulfillingOrdersSolutionstoOrderFulfillmentProblemsAlongtheSupplyChainHandlingReturns(ReverseLogistics)ReturntheitemtotheplaceofpurchaseSeparatethelogisticsofreturnsfromthelogisticsofdeliveryCompletelyoutsourcereturnsAllowthecustomertophysicallydropthereturneditematacollectionstationoraphysicalstoreofthesamevendorAuctionthereturneditemsSolutionstoOrderFulfillmentProblemsAlongtheSupplyChainOrderFulfillmentinB2BUsingE-MarketplacesandExchangestoEaseOrderFulfillmentProblemsinB2BOrderFulfillmentinServicesOtherSolutionstoSupplyChainProblems*VisibilityInnovativeE-FulfillmentStrategies*Merge-in-transitIntegrationandEnterpriseResourcePlanningTheSupplyChainsofTomorrowRFIDandCPFRasKeyEnablersinSupplyChainManagementTheEssentialsofRFID*Radiofrequencyidentification(RFID)RFIDApplicationsintheSupplyChainAroundtheGlobeRFIDatStarbucksRFIDatDeutschePost(Germany)RFIDatAtlanticBeefProducts(Ontario,Canada)*CollaborativePlanning,Forecasting,andReplenishmentDigitalSupplyChainsSource:Intel,“BuildingtheDigitalSupplyChain:AnIntelPerspective.”IntelSolutionsWhitePaper,January2005,Figure5,p.9.ReprintedwithpermissionfromIntelCorporationRFIDatWalmartandItsSuppliers:theSeven-StepProcessDrawnbyE.TurbanOtherE-Commerce

SupportServicesConsultingServicesDirectoryServices,Newsletters,andSearchEnginesDirectoryServicesNewslettersSearchEnginesandNewsAggregatorsOtherE-Commerce

SupportServicesMoreECSupportServicesTrustServicesTrademarkandDomainNamesDigitalPhotosAccesstoCommercialDatabasesKnowledgeManagementClientMatchingE-BusinessRatingSitesSecurityandEncryptionSitesWebResearchServicesCoupon-GeneratingSitesOtherE-Commerce

SupportServicesOutsourcingECSupportServicesWhyOutsourceECServices?Theprocessincludesthefollowingmajorsteps:ECstrategyinitiation,formulation,andimplementation(Chapter13)Systemsdesign(Chapter14)Building(orbuying)thesystems(Chapter16)Hosting,operating,andmaintainingtheECsite(Chapter16)ITOutsourcingandApplicationServiceProvidersManagerialIssuesIfyouareanECvendor,whatisthebottleneckintheorderfulfillmentprocess?Forwhichitemsshouldwekeepourowninventory?Whatisthealliancestrategyinorderfulfillment?Howshouldwemanagereturns?Whatlogisticsinformationshouldweprovidetocustomers?ShouldweuseRFIDfortheo

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