Supply Chain Management

Chapter 13 : Order Fulfillment

The Order Fulfillment Process

Strategic Order Fulfillment Processes Operational

Order Fulfillment Process

Order Generation
Order Processing
Order Preparation Order Shipment
Post Delivery Activities

E-Fulfillment vs. Traditional Order Fulfillment Process

Developing an E-Fulfillment Strategy Distributed Delivery Centers
Partner Fulfillment Operations Dedicated Fulfillment Centers
Third-party Fulfillment Centers
Build-to-order

Responsive Order Fulfillment Process

Factors Influencing the Responsiveness of the Order Fulfillment Process

Nature of the Product
Nature of Customer Demand
Production triggering
Meeting Customer Demand

Elements of Responsive Order Fulfillment Process

Stimuli
Awareness
Capabilities
Goals

Order Fulfillment Systems

Order Capture
Order Management
Order Fulfillment
Reverse Logistics

Characteristics of an Ideal Order Fulfillment System.

Chapter Summary

Order fulfillment is a key process in any product or services company. The process of order fulfillment encompasses all the activities that take place between the placements of an order by a customer and to the delivery of the order to the customer. The order fulfillment process can be viewed from two perspectives: strategic and operational.

The strategic order fulfillment process determines the requirements and systems that need to be in place to fill the customer orders. The operational order fulfillment process deals with the activities that have to be performed to fill the order. The e-fulfillment process is different from the physical order fulfillment process.

Most e-commerce organizations use one or more of the following order fulfillment strategies: distributed delivery centers; partner fulfillment operations; dedicated fulfillment centers; third-party fulfillment centers; and build-to-order. The key factors that influence the responsiveness of the order fulfillment process are the nature of the product, the nature of product demand, production triggering, and meeting customer demand.

Four components are involved in the responsive order fulfillment process: stimuli, awareness, capabilities, and goals. Technologically advanced order management systems can help firms develop an accurate and efficient order fulfillment process.

Next Chapter>>