Problems in order fulfillment Why Supply chain Problems EXist Problems along the EC supply chain stem from uncertainties and from the need to coordinate several activities, internal units, and business partners third-party logistics(3PL) suppliers EXternal, rather than in-house, providers of logistics servces Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 11 Problems in Order Fulfillment • Why Supply Chain Problems Exist – Problems along the EC supply chain stem from uncertainties and from the need to coordinate several activities, internal units, and business partners third-party logistics (3PL) suppliers External, rather than in-house, providers of logistics services
Solutions to order fulfillment problems Improvements in the Order-Taking Process Improve the order-taking process and its links to fulfillment and logistics Implement linkages between order-taking and payment systems Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 12 Solutions to Order Fulfillment Problems • Improvements in the Order-Taking Process – Improve the order-taking process and its links to fulfillment and logistics – Implement linkages between order-taking and payment systems
Solutions to order fulfillment problems Warehousing and Inventory Management Improvements warehouse management system(WMs) A software system that helps in managing warehouses other Inventory management Improvements Automated Warehouses Using Wireless Technologies Using rfid to improve Wms Electronic Commerce Prentice Hall 2006 3
Electronic Commerce Prentice Hall © 2006 13 Solutions to Order Fulfillment Problems • Warehousing and Inventory Management Improvements warehouse management system (WMS) A software system that helps in managing warehouses – Other Inventory Management Improvements – Automated Warehouses – Using Wireless Technologies • Using RFID to improve WMS
Solutions to order fulfillment problems Speeding deliveries Same day, even same hour, delivery Supermarket deliveries Failed delivery companies Partnering Efforts and Outsourcing Logistics Comprehensive logistics services Outsourcing logistics Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 14 Solutions to Order Fulfillment Problems • Speeding Deliveries – Same day, even same hour, delivery – Supermarket deliveries – Failed delivery companies • Partnering Efforts and Outsourcing Logistics – Comprehensive logistics services – Outsourcing logistics
Solutions to order fulfillment problems Handling Returns Return the item to the place where it was purchased 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 Auction the returned items Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 15 Solutions to Order Fulfillment Problems • Handling Returns – Return the item to the place where it was purchased – 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 – Auction the returned items