Chapter 15. Order Fulfillment, Logistics, and Supply Chain Management. Order Fulfillment Problems. How much do I need? Delivery: time and cost Fierce competition Where are my goods? Track and Trace One shipment or many, for an order When will it arrive? Variability, uncertainty
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Supply Chain Management
1. Placing order, payment
2. Transfer order to Petstore.com, check stock
3. Use a wholesaler to get the fish
4. Supplier finds fish, ships to wholesalers
5. Wholesalers rush to Petstore
6. Petstore uses FedEx to ship to customer with copy of credit card payment
Discussion: What is the contribution of EC?
Integration of the business processes along the chain, Planning, Organizing, control of many activities
Purchasing, delivery, packaging, checking, warehousing, etc.Supply Chain Management
Source: Modified from Handfield and Nichols (1999), p. 3.
Automation of processes
Use of software for facilitating all the above
Inventory management and controlAreas of Opportunities (cont.)
EC supportProper SCM (cont.)
Shortens cycle time
Minimizes delays and work interruptions
Lower administrative costsEC Solutions Along the Supply Chain (cont.)
Source: Steinert-Threlkeld (January 31, 2000). Originally published in Interactive Week, www.xplane.com
Automation of segments useful, but integration brings: