1. Order Fulfillment Along the Supply Chain
Chapter 12
Order Fulfillment Along the Supply Chain

2. Learning Objectives
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.

3. Order Fulfillment and Logistics: An Overview
Basic Concepts of Order Fulfillment and Logistics
*Order fulfillment
Overview of Logistics
*Logistics
Traditional Versus EC Logistics
*E-logistics

4. Order Fulfillment and Logistics: An Overview
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

5. Order Fulfillment and the Logistics Process

6. Order Fulfillment and Logistics: An Overview
The Importance of Order Fulfillment
Correct product delivery
On time delivery
Order tracking
Speedy delivery
Free shipping
Order Fulfillment and the Supply Chain

7. Problems in Order Fulfillment Along Supply Chains
Uncertainties in Demand
Inadequate Logistical Infrastructure
*Third-party logistics suppliers (3PL)
Inefficient Financial Flows
Lack of Information Sharing

8. Solutions to Order Fulfillment Problems Along the Supply Chain
Improvements in the Order-Taking Activity
Warehousing and Inventory Management Improvements
*Warehouse management system (WMS)
Inbound functions
Inventory functions 
Resource management 
Outbound functions 
3PL/divisional support

9. 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
Delivery by Drones
Same Day Delivery
Partnering Efforts and Outsourcing Logistics
Using Robots in Warehouses

10. Changes in the Supply Chain

11. Solutions to Order Fulfillment Problems Along the Supply Chain
Integrated Global Logistics Program
Order Fulfillment in Make-To-Order and Mass Customization
Fulfilling Orders

12. Solutions to Order Fulfillment Problems Along the Supply Chain
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 or a physical store of the same vendor
Auction the returned items

13. Solutions to Order Fulfillment Problems Along the Supply Chain
Order Fulfillment in B2B
Using E-Marketplaces and Exchanges to Ease Order Fulfillment Problems in B2B
Order Fulfillment in Services
Other Solutions to Supply Chain Problems
*Visibility
Innovative E-Fulfillment Strategies
*Merge-in-transit
Integration and Enterprise Resource Planning
The Supply Chains of Tomorrow

14. RFID and CPFR as Key Enablers in Supply Chain Management
The Essentials of RFID
*Radio frequency identification (RFID)
RFID Applications in the Supply Chain Around the Globe
RFID at Starbucks
RFID at Deutsche Post (Germany)
RFID at Atlantic Beef Products (Ontario, Canada)
*Collaborative Planning, Forecasting, and Replenishment

15. Digital Supply Chains
Source: Intel, “Building the Digital Supply Chain: An Intel Perspective.” Intel Solutions White Paper, January 2005, Figure 5, p. 9. Reprinted with permission from Intel Corporation

16. RFID at Walmart and Its Suppliers: the Seven-Step Process
Drawn by E. Turban

17. Other E-Commerce Support Services
Consulting Services
Directory Services, Newsletters, and Search Engines
Directory Services
Newsletters
Search Engines and News Aggregators

18. Other E-Commerce Support Services
More EC Support Services
Trust Services
Trademark and Domain Names
Digital Photos
Access to Commercial Databases
Knowledge Management
Client Matching
E-Business Rating Sites
Security and Encryption Sites
Web Research Services
Coupon-Generating Sites

19. Other E-Commerce Support Services
Outsourcing EC Support Services
Why Outsource EC Services?
The process includes the following major steps:
EC strategy initiation, formulation, and implementation (Chapter 13)
Systems design (Chapter 14)
Building (or buying) the systems (Chapter 16)
Hosting, operating, and maintaining the EC site (Chapter 16)
IT Outsourcing and Application Service Providers

20. Managerial Issues
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?

21. Summary 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.