Order Fulfillment and logistics An Overview Overview of Logistics logistics The operations involved in the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 Order Fulfillment and Logistics: An Overview • Overview of Logistics logistics The operations involved in the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption
Order Fulfillment and logistics An Overview The ec order fulfillment process Step 1: Making sure the customer will pay Step 2: Checking for in-stock availability Step 3: Arranging shipments Step 4: Insurance Step 5: Replenishment Step 6: In-house production Step 7: Use suppliers Step 8: Contacts with customers Step 9: Returns Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Order Fulfillment and Logistics: An Overview • The EC Order Fulfillment Process – Step 1: Making sure the customer will pay – Step 2:Checking for in-stock availability – Step 3:Arranging shipments – Step 4: Insurance – Step 5: Replenishment – Step 6: In-house production – Step 7: Use suppliers – Step 8: Contacts with customers – Step 9: Returns
Order Fulfillment and logistics An Overview The ec order fulfillment process reverse logistics The movement of returns from customers to vendors e-logistics The logistics of EC systems, typically involving small parcels sent to many customers' homes(in B2C) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 Order Fulfillment and Logistics: An Overview • The EC Order Fulfillment Process reverse logistics The movement of returns from customers to vendors e-logistics The logistics of EC systems, typically involving small parcels sent to many customers’ homes (in B2C)
Order Fulfillment and logistics An Overview Traditional Versus EC Logistics Traditional logistics deal with movement of large amounts of materials to a few destinations E-logistics shipments typically are small parcels sent to many customers’ homes Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 Order Fulfillment and Logistics: An Overview • Traditional Versus EC Logistics – Traditional logistics deal with movement of large amounts of materials to a few destinations – E-logistics shipments typically are small parcels sent to many customers’ homes
Problems in order fulfillment Typical Supply Chain Problems The inability to deliver products on time High inventory costs Quality problems due to misunderstandings Shipments of wrong products, materials, and parts Cost to expedite operations or shipments is high Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 Problems in Order Fulfillment • Typical Supply Chain Problems – The inability to deliver products on time – High inventory costs – Quality problems due to misunderstandings – Shipments of wrong products, materials, and parts – Cost to expedite operations or shipments is high