1. Order Fulfillment along the Supply Chain in E-Commerce
Chapter 13
Order Fulfillment along the Supply Chain in E-Commerce

2. Learning Objectives
Define EC order fulfillment and describe the EC order fulfillment process.
Describe the make-to-order approach and 3D printing.
Describe the role of warehousing in order fulfillment and the use of robots there.
Describe EC delivery methods including futuristic ones.
Describe the major problems of EC order fulfillment along the supply chains.
Describe various solutions to EC order fulfillment problems.
Describe RFID supply chain applications.
Describe B2B order fulfillment.
Describe other supply chain topics.

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. Figure 13.2 Highlights of EC order fulfilment
Orders received
Customization? No
Orders processed;
Warehousing
13.3
Yes
Supply Chain problems
13.5
13.6
Solutions
13.7
RFID
M-T-O
Delivery to customers
13.2
13.4
Figure 13.2 Highlights of EC order fulfilment

8. 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

9. WAREHOUSING, ROBOTS AND WAREHOUSE MANAGEMENT SYSTEMS
Using Robots (Bots) in Warehouses
Warehouse Management System (WMS)

10. DELIVERY TO CUSTOMERS: FROM ROBOTS TO DRONES
Speeding Up Deliveries: From Same Day to a Few Hours
Same Day Delivery
Delivery by Drones
Obstacles to Drone Delivery
Delivery by Robots

11. 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

12. 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

13. 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

14. Changes in the Supply Chain

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

16. 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

17. 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

18. RFID as a 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

19. Figure 13.4 Dell’s B2B order fulfillment
Ordering
e-procurement
Warehousing
Production
Delivery
B2B large order
Analyze component
Inventory
Arrange payment
Contact suppliers if needed
Suppliers ship immediately, RFID
Receiving, checking,
RFID
Prepare all necessary components
(Robots)
Plan, get all components,
RFID
Information
Assemble hardware, software
Testing
Additional parts and documents
Packaging
To delivery docks
Figure 13.4 Dell’s B2B order fulfillment
Deliver to customers

20. 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

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

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

23. 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

24. 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

25. Managerial Issues How will you address the omni-channel imperative?
If you are an EC vendor, what are the bottlenecks in your order fulfillment process?
How should we manage returns?
For which items should we keep our own inventory?
What is the alliance strategy in order fulfillment?
What logistics information should we provide to customers?
Should we use RFID for the order fulfillment?

26. Summary The order fulfillment process. Problems in order fulfillment.
Make-to-order and 3D printing.
Warehouses and robots in order fulfillment.
Delivery to customers.
Problems in order fulfillment.
Solutions to order fulfillment problems.
RFID tags.
Other supply chain topics.